Xperi (US:XPER)2025-11-06 21:18Revenue Performance - Revenue for the three months ended September 30, 2025, was $132.9 million, a decrease of $21.3 million, or 16%, compared to the same period in 2024, primarily due to a $31.9 million decline in Pay-TV revenue[158] - Revenue for the nine months ended September 30, 2025, was $331.6 million, a decline of $39.7 million, or 11%, primarily due to divestitures and a decrease in Pay-TV revenue[161] Expense Management - Total operating expenses for the three months ended September 30, 2025, were $113.0 million, a decrease of $38.5 million, or 25%, compared to the same period in 2024[163] - Research and development expenses for the three months ended September 30, 2025, were $29.9 million, a decrease of $23.7 million, or 44%, primarily due to lower spending following the Perceive Transaction[168] - Selling, general and administrative expenses for the three months ended September 30, 2025, were $42.5 million, a decrease of $14.0 million, or 25%, attributed to reduced employee headcount and lower stock-based compensation expenses[171] - Stock-based compensation (SBC) expense decreased by $5.6 million (37%) to $9.6 million for the three months ended September 30, 2025, compared to $15.2 million in the same period of 2024[173] - Depreciation expense increased by $0.6 million (19%) to $3.5 million for the three months ended September 30, 2025, compared to $2.9 million in the same period of 2024[174] - Amortization expense decreased by $2.9 million (27%) to $7.8 million for the three months ended September 30, 2025, compared to $10.7 million in the same period of 2024[176] Strategic Actions - The company completed the divestiture of its AutoSense in-cabin safety business in January 2024, enhancing focus on entertainment markets[152] - The company sold substantially all assets of Perceive Corporation for $80.0 million in cash, completed in October 2024, allowing a focus on entertainment-based solutions[153] - The company approved a restructuring plan on November 1, 2025, to reduce its global workforce by approximately 250 employees, expecting annualized cost savings of $30.0 million to $35.0 million[155] - A restructuring plan was approved on November 1, 2025, to reduce the global workforce by approximately 250 employees, with estimated charges between $16.0 million and $18.0 million[202] Cash Flow and Liquidity - Cash and cash equivalents decreased by $33.8 million to $96.8 million as of September 30, 2025, from $130.6 million as of December 31, 2024[189] - Net cash used in operating activities was $4.6 million for the nine months ended September 30, 2025, compared to $56.6 million in the same period of 2024[192] - Net cash used in investing activities was $14.6 million for the nine months ended September 30, 2025, compared to $12.9 million in the same period of 2024[195] - The company believes its current cash and cash equivalents, along with borrowings under the AR Facility, will be sufficient for at least the next 12 months[203] - The company may need to supplement cash and cash equivalents with additional outside sources as part of its liquidity strategy[203] - Poor financial results or unanticipated expenses could lead to additional financing requirements sooner than expected[204] - The company is monitoring its earnings and cash flow to assess its ability to access capital markets as needed[205] Debt and Interest Rate Exposure - The company issued a senior unsecured promissory note of $50.0 million in connection with the acquisition of Vewd, with an interest rate of 6.00% per annum, maturing on July 1, 2025[199] - On February 21, 2025, the company borrowed $40.0 million under the AR Facility, with expected interest payments of approximately $2.6 million for the next 12 months[201] - The company is exposed to interest rate risk, with $40.0 million of indebtedness under the AR Facility subject to variable interest rates, estimating a 1% increase in SOFR would raise interest expense by approximately $0.4 million annually[210] - The AR Facility is scheduled to terminate on February 21, 2028, unless terminated earlier[200] Financial Health Indicators - The current ratio improved to 2.4 as of September 30, 2025, compared to 1.6 as of December 31, 2024, indicating better short-term financial health[189] - There were no significant changes in critical accounting estimates during the nine months ended September 30, 2025[206]