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Xperi (XPER) Q1 Loss Widens Y/Y, Revenues Down, Stock Falls
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Xperi Corporation’s (XPER - Free Report) incurred adjusted loss of 67 cents per share in first-quarter 2018 compared with a loss of 22 cents per share in the year-ago quarter. The reported figure came within the guided range of 29-78 cents per share.
Revenues of $65.5 million declined 2.6% year over year and came below the guided range of $83-$138 million. Total billings amounted to $104.3 million, up 4.6% year over year.
Since the first-quarter earnings release on May 3, shares of the company were down 12.6%. So far this year, Xperi has lost 17.4% compared with the industry’s decline of 7.5%.
Operating Performance
Owing to high percentage of licensing revenues, Xperi usually generates strong gross margins. In the fourth quarter, the company’s gross margin was 96.5%, down 140 basis points from 97.9% in the year-ago quarter.
Xperi’s operating expenses (research, development and other related costs & selling, general and administrative) totaled $64.1 million, down 8.9% on a year-over-year basis. As a percentage of sales, research, development and other related costs increased, selling, general and administrative expenses decreased on a year-over-year basis.
Operating loss was $32.5 million compared with $39.9 million in the year-ago quarter. Net loss came in at $33 million compared with $11 million in the year-ago quarter.
At quarter end, cash, cash equivalents and short-term investments were $80.8 million compared with $200.7 million at the end of the fourth quarter of 2017. Long-term debt totaled $480.3 million compared with $545.2 million at the end of the fourth quarter. The company generated $4.7 million in cash from operations in the quarter under review.
Dividends and Share Repurchase
In the fourth quarter, the company repurchased shares for an aggregate amount of $15 million. As of Mar 31, 2018, Xperi had approximately $127.9 million remaining under its current repurchase program. It also paid $9.9 million in dividends.
Guidance
For the second quarter of 2018, the company expects billings between $99 million and $103 million. Non-GAAP operating expenses are envisioned in the range of $62-$65 million.
Upcoming Releases
Investors interested in the broader Business Services sector are keenly awaiting earnings reports from key players like Gartner, Inc. (IT - Free Report) , The Dun & Bradstreet Corp. (DNB - Free Report) and Broadridge Financial Solutions Inc. (BR - Free Report) . While Garter and Dun & Bradstreet will release first-quarter 2018 results on May 8 and May 9, respectively, Broadridge will report third-quarter fiscal 2018 numbers on May 8.
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Xperi (XPER) Q1 Loss Widens Y/Y, Revenues Down, Stock Falls
Xperi Corporation’s (XPER - Free Report) incurred adjusted loss of 67 cents per share in first-quarter 2018 compared with a loss of 22 cents per share in the year-ago quarter. The reported figure came within the guided range of 29-78 cents per share.
Revenues of $65.5 million declined 2.6% year over year and came below the guided range of $83-$138 million. Total billings amounted to $104.3 million, up 4.6% year over year.
Since the first-quarter earnings release on May 3, shares of the company were down 12.6%. So far this year, Xperi has lost 17.4% compared with the industry’s decline of 7.5%.
Operating Performance
Owing to high percentage of licensing revenues, Xperi usually generates strong gross margins. In the fourth quarter, the company’s gross margin was 96.5%, down 140 basis points from 97.9% in the year-ago quarter.
Xperi’s operating expenses (research, development and other related costs & selling, general and administrative) totaled $64.1 million, down 8.9% on a year-over-year basis. As a percentage of sales, research, development and other related costs increased, selling, general and administrative expenses decreased on a year-over-year basis.
Operating loss was $32.5 million compared with $39.9 million in the year-ago quarter. Net loss came in at $33 million compared with $11 million in the year-ago quarter.
Xperi Corporation Net Income (TTM)
Tessera Holding Corporation Net Income (TTM) | Tessera Holding Corporation Quote
Balance Sheet and Cash Flow
At quarter end, cash, cash equivalents and short-term investments were $80.8 million compared with $200.7 million at the end of the fourth quarter of 2017. Long-term debt totaled $480.3 million compared with $545.2 million at the end of the fourth quarter. The company generated $4.7 million in cash from operations in the quarter under review.
Dividends and Share Repurchase
In the fourth quarter, the company repurchased shares for an aggregate amount of $15 million. As of Mar 31, 2018, Xperi had approximately $127.9 million remaining under its current repurchase program. It also paid $9.9 million in dividends.
Guidance
For the second quarter of 2018, the company expects billings between $99 million and $103 million. Non-GAAP operating expenses are envisioned in the range of $62-$65 million.
Upcoming Releases
Investors interested in the broader Business Services sector are keenly awaiting earnings reports from key players like Gartner, Inc. (IT - Free Report) , The Dun & Bradstreet Corp. (DNB - Free Report) and Broadridge Financial Solutions Inc. (BR - Free Report) . While Garter and Dun & Bradstreet will release first-quarter 2018 results on May 8 and May 9, respectively, Broadridge will report third-quarter fiscal 2018 numbers on May 8.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>