Its brands include Adeia, IMAX Enhanced, TiVo, DTS and HD Radio. Its shares went ex-dividend at the end of May and are currently priced in the high $14 range.
Xperi Holding Corporation, with a market cap of $1.53 billion, could end up pleasing investors a little bit more come early August, when its Q2 2022 earnings results are scheduled for release. The company has increased both its annual revenue and its operating cash flow guidance for the year.
The company that sees SVP Joe D’Angelo in the driver’s seat on HD Radio will enjoy a $10 million increase in both its annual revenue and operating cash flow guidance for 2022.
Why? The jump is primarily due to “a recently resolved contract dispute with a customer.”
Now that the matter is out of the way, here’s the update guidance for FY 2022:
|
Category |
Prior Outlook |
Updated Outlook |
|
Revenue |
$910M to $950M |
$920M to $960M |
|
Operating Cash Flow |
$200M to $230M |
$210M to $240M |
The increased revenue and cash flow estimate comes following a resolution of a dispute involving Xperi-owned FotoNation. It filed a request for arbitration in January 2020 against “a large mobile imaging customer” for breach of contract.
In settling the arbitration, Xperi entered into an agreement that resolves all outstanding disputes. Importantly, the arrangement provides an upfront payment to Xperi for past licensing fees and requires additional license fees and payments to Xperi over the next few years.
Xperi CEO Jon Kirchner commented, “This resolution, along with a recent long-term renewal of a significant IP licensing customer, provides the foundation to increase our revenue and operating cash guidance outlook. We continue to execute on our long-term strategy, despite a challenging market backdrop.”
