XPER - Earnings call transcript Q3 2020

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Xperi Third Quarter Fiscal Year 2020 Earnings Conference Call.

During today's presentation, all parties will be in a listen-only mode.

Following the presentation, the call will be opened for questions. is today, call XXXX. November This Instructions] being Monday, recorded XX, [Operator would the of Vice Xperi. turn like Investor over for I to Weinfeld, call now to Geri Relations President ma'am. ahead, go Please

Geri Weinfeld

as along President everyone. Also call we available year for will on Jon financial me Jon the today With of is Robert who to the results. afternoon, be Robert Kirchner, Good joining CEO; XXXX report third and IP quarter and Thanks Licensing, our with questions portion fiscal call are Armaly, the during on Samir of us Andersen, CFO. call. the answer Q&A

we like Before to reminders. would I provide begin, two

and statements most on and Risk any statements coronavirus. actual limited the to cause not today's events, circumstances we impact does filings, today, of what events on Factors Please which discuss in after contains forward-looking projections expectations differ and subject including uncertainties SEC TiVo our or predictions, based circumstances. XX-Q the products from update the the that more these not the about or risks and materially risks, to Form arising that but beliefs launch First, new and to to alter could call. with changes of reflect development refer risks therefore including, transaction, Please uncertainties future section other associated to, or statements note results the intend to potential information company that our are our for discussion current recent and in are management's forward-looking this

debt intangible research development, equity realized or integration acquisition-related which measures, for stock-based compensation on exclude gains acquired and extinguishment. on in-process refer and and we Second, financial charges non-GAAP losses and separation losses acquired expenses, amortization, certain or expenses, expense, securities gains asset to merger

conference of in our earnings turn Jon reconciliations Investor A the Relations call provided at Investor now recording section to non-GAAP comparable on available and of Relations these will directly website. the be over on call release have our GAAP most this to website of measures I'll the measures the Kirchner. www.xperi.com. We

Jon Kirchner

and everyone, Geri, thanks, Thanks, joining us. for

update and over On I'll you IP financials then the call our turn Product, segments, through year. a outlook integration Robert walk the and two and our on to discuss business for it provide remainder progress, improved to our the our of today, brief

to Before out start went you've word though, with Comcast. brief today. like after on I I'd By seen a begin the release market likely now that

concluded our the our we license raising license expected a of XXXX. licensing in annual $XXX higher within revenue business. and starting of world's and to litigation our all This our have of license companies. We consumption This and and long-term And of the are license the programs underscores for entertainment stable as leading remainder positively for nature media settle the agreement, the agreement business and further year. of the video forms long-term of million IP our outstanding successfully Comcast, relevance result all IP the approximately a establishes portfolio media guidance to one with of value baseline contributes

for in more license the later We means this will provide what details it on and call. Xperi

QX up progress in flow call million, and $XX.X during today's our the quarter Operating X.X% with line in for Xperi results original quarter, TiVo. $XX.X half million year-over-year. was down on for $XXX.X Onto to combined financial cash million, fully second initiatives For basis last delivered expectations. made we Revenue will from quarter and year. periods year-over-year was the refer all a past significant the various comparisons on strategic

Importantly, year adjusted $XX.X free a flow cash was million million versus $XX.X ago.

or X.X% $XX.XX, outstanding. an price back of bought of we our million During at X.X average the shares shares just over quarter,

towards commitment car. goal of proud through in continue develop in navigate and well, for extremely and to home, the the the and exceptionally pandemic their experiences on-the-go enable I'm to that the deliver technologies overarching extraordinary employees our Xperi invent, ongoing Our team

show Our in remain to pace of And on end-markets assuming of some are in cautious improvement XXXX. beginning recovery. the are signs recovery while QX, we we

employee the quarter basis third about full million as business quarter, our a level mark annualized aligned of synergies at efficiencies in completed two already which synergy infrastructure. now organizational benefits on committed look substantial is highly XXXX. ability redesign, we've the to of the on design a we've outlined achieve and optimized expected high and Xperi By in merged the well end as we our by are company, integration requirements made confident full realized and of we'll the since training, further targets compensation, beyond We scale for targets. five remain a to the thirds with architecture applications major and We We've as end cost our combined month we and and those first our already the executing TiVo the of for rate run revenue $XX key programs plans, completed progress and an including set synergies. meet

synergy and and now early in discussions are DTS's Content with connected with TV Personalized Stream implementation. side, augmenting to product we TiVo with Discovery On the revenue the OEMs radio are TiVo's regards Metadata

million, IP business, QX to year-over-year. Moving in the X% revenue $XX.X Licensing down Licensing IP was

any the as with revenue. decline will To today discussing third the quarter numbers was be after the be announced of end our to that from we that Comcast due include not agreement do semiconductor license concluded was expected clear, impact quarter. was As lower the agreement

importance this we agreement resolution walk takeaways. be IP should Given to our key the the want what license to the through believe of business, go-forward I and you

underscores resolves relevance all our companies portfolio. the disputes value between of patent and outstanding the the of and agreement this First,

XXXX, revenue next of early well-established this through core expiration Second, decade. Comcast in licensing our dating Providing prior the overall agreement back of the The to total agreement program program XX consistent our of license a our the the with the market. XXXX. for through extends are Pay-TV for agreement terms of the supports agreement licensing length early years, Pay-TV coverage with

pleased underscores successfully to we have markets, our value and protect are licensing completion merger. if companies achieve so the our shareholders. long-term and necessary IP the Comcast for of our value litigation resolved leading soon core commitment dispute the with after to our even to This in to complex protracted our of our Third, becomes agreement

Finally continues renewals business concluding this the technological largest agreement with and market our experience Comcast illustrates our to customers video significant evolution. with execute ability key as to

leading our resolving believe into than better cash forward. ability future. ever recurring have we that significant generate impact In positioned that outcomes reach summary, the business Importantly, with a flows by long-term our to business is Comcast across positive supported licensing successful well our IP on will going companies agreements

Moving the to $XXX.X $XXX.X million, quarter Total down product our business. Product versus last revenue year. X.X% million for was

product year-over-year. driven out break experience, car other of TiVo The the business categories: and down was business. into we declines $XX connected the reminder, of million, three home In growth XK, the Pay-TV. up was consumer parts revenue a As by category X% in consumer our Stream experience offset sales which

search include XXX XUMO, EVO Regarding the as quarter and engagement local grew expanded Stream our channels now availability. Locast time consumer satisfaction up the XK, on and delivers in TV, RCN. metrics adding Tubi, core from the content. well and and search and distribution TiVo markets retail XXX we in to through consumer during Walmart partner product been discovery based strong has Pluto content watching industry presence Amazon to broadband Today, channels is for to Plus and through major leading delivering as

announced iTE expanding On TVs. in leading momentum first Enhanced the the are streaming IMAX Tencent TV services to just China, OLED Enhanced IMAX ecosystem expand and offerings we Chinese content the continue front, and IMAX with XK Hisense domestic strong manufacturer Enhanced

addition, in ecosystem the the total bringing XX. first In bar Philips sound IMAX announced of to number brands the Enhanced

Enhanced drivers of growth sales key program follow chip Ergo and growth long-term experience of in a chips that penetration future consumer Stream our include of and and reminder, the launch of in products. and platform, the the Perceive's on As TiVo monetization category IMAX

X.X% Connected to $XX.X category, down was Moving Car year-over-year. the million, revenue

impact lower to production COVID-XX. the As year-over-year driven car was decline by due expected, the of

This receiver Radio. significant front, all that standard our to the HD builds further HD approved AM manufacturers broadcast the and it on broadcasting. for is and technology FCC Radio encourages existing incorporate On digital the

North car HD on models. Radio During in XXXX America quarter, the XX new launched

signs seeing starting are the automotive to recover. that market We is

shipments this month released see to in our with recovery expect a projections latest recovery XXXX. around X% of Radio line the in a market HD We predict sales trends. car The

in On state-of-the-art the the Radio this Mercedes-Benz system, the of Connected launched new milestone quarter AG. which a experience. Radio significant with front, redefining launch reached S-Class we've experience Radio radio with is in-dash Connected listening multimedia user Mercedes-Benz Daimler official the Connected

for XX languages available manufacturers. source personalized platform. radio aggregated, in many expect platform The is OEMs global in with rich cities, all more the and the expect Connected broadly across most for countries to their our Connected has a in-vehicle radio content to implement next automotive to radio Radio curated from stations, platform Radio's first roll generation create We and experience product listening its the developed XX,XXX out we advanced that users. of delivered Daimler team is line. XX This XX,XXX platform

automotive XXXX, by platform approximately the Importantly for will connected expect XX units we reach to according total million media recent addressable worldwide. market market our forecasts,

this the detection our remain monitoring To continue to of second Lastly, occupant object analytics. body generic the which OMS, includes add brand deliver track in features major for such to gesture we monitoring on to capture vision first we computer a as in-cabin half and European the solution and XXXX. features new to in market, advanced opportunity

sold countries is have such and Our new half adopters of million million cars early on America, globally new North regions year current Japan, focus addressable standards, market safety a improved – with of that Europe. those and as XXX roughly been XXX each

revenue down our Product million, was our the Moving business, category last to Pay-TV $XX.X X% sequentially. in

RCN quarter, the TiVo Liberty America, Latin and MetroNet certain IPTV Midco, next-gen launched including customers platforms. During

and than IPTV potential new experience greater upgraded older user provides monetization platform solutions. Our Pay-TV generation an previous

pace conversion has to expected. of due IPTV to COVID-XX originally been the than related household slower However, restrictions,

quarter was our in coverage Robert our several at start-up, the Ergo With potential chip and interest Perceive's, Embedded our highest that, with and in Vision The mobile lead I'll conference. are during Lastly, to across attended customers, the the turn September our Robert? a we among Ergo the the financials. and Teig, at enterprise to favorable level rated the increasing over presented media Steve which platform. CEO, discuss to evaluating call where PC, perceived engage session was received Summit, customers of continue

Robert Andersen

Thanks, Jon.

begin for quarter. third the with Let results me financial

guidance. was both year a sold $XXX.X noted basis numbers a As fully second comparisons goods and more to higher of cost hardware non-GAAP presented basis. million last are ago revenue sold expense the million, meaningful by merger combined in discussing non-GAAP flow with which with based GAAP quarter of operating operating million million, expense was $XX.X increased XK. is our total a half $XXX.X was basis, the XXXX original on-track TiVo down is GAAP was $X.X significantly $XXX third third operating than our Cost including the TiVo. the expense $XXX.X due Xperi's fully of goods a for provide quarter COGS cash Stream companies. of merged on and On to order periods and to earlier, due combined million year on from million, the including rollout year-over-year from our expense increased or

savings costs all due in realized of the operating already tax approximately as so results. will outside have million. the paid COGS, reduced million of a the million, $XXX.X the this XX% perspective From reflected of targeted spend. $XX.X $XX.X be year-over-year were litigation by expense, we'd lower annualized targeted in savings quarter non-GAAP end lower quarter, expense Cash is was of personnel $XX to of financial million down two-thirds those not XXXX, for quarter Excluding the synergy or end of the by year's and and

were This included beat since we TiVo's $X.X unusually the in merger tax of can quarter's that was to accrued prior withholding high have paid cash million it taxes QX.

been earnings to of $X.XX. number outstanding. the We related million prior non-GAAP XXX.X form in million shares quarter, TiVo ended the would share cash share with the Given the per cash earnings basic quarter period total per tax was third excludes $X.X for have liabilities, tax The non-GAAP $X.XX.

$XX During back the of million shares total bought stock of million. quarter, for an at average of we X.X price common $XX.XX a

of the we the $XXX of million end repurchase remaining. share had quarter, As authorization of

debt million the in million $XXX fully quarter. million down combined from balance during Comcast basis on We $XX.X pay sheet, our by lower finished quarter as of cash our a on flow debt up million, paid to for the with operating expect cash the $X license. make and second result was spend $XX.X down the quarter, ago a expense. quarter together and year a significant and up Moving the Operating interest reduced million to investments, from the $XX.X the of we

adjusted of free cash spend the adjusted and for $X.X for operating Our accounted $XX.X property, costs. flow million; free quarter flow and equipment plant merger million reflects of flow cash cash was and separation $X.X million related

cash stock. of quarter, dividend per of $X.XX Xperi paid the During common share

provide now an second on outlook. me Let our half update

cost For new and half for to media areas Comcast resolved, our America $XXX XXXX, and is per figures baseline year. to expense Please the Pay-TV between our and variable improved $XXX to a expenses. of $XXX due new a revenue primarily release call the for The We meaningful earnings we with compensation will approximately and million expected XXXX quarter second now from in to increased accruals last $XXX second out. now to OTT, in refer $XXX the including there's expect traditional beginning of million IP outlook for $XX to and an now Notably expected for guidance million non-GAAP year million subscribers million operating for second continue discussed expense sold million. expense semiconductor on half quarter to reconciliation half believe remaining be be is goods business. GAAP from now importantly business upside between discussed increase unlicensed the year IP and compared and million, between the three year true-up be to and $XXX million the expense North from operating million, in between approximately be of revenue we is we second non-GAAP our our penetration prior between to expect $XXX of new $XXX the increase business GAAP $XX million.

other half we in taxes expense on interest cash to updated shares of share $X XXXX between the income in we earnings million, increase recent the $XX basis remain to million to to and between expect diluted our are expect a expect move and number fully $XXX in be million. of midpoints $XX per million to the basic and share, of buybacks, $XXX $XX $XX due approximately be second the to be guidance share We to million Also non-GAAP non-GAAP second and These million. ranges approximately outstanding shares million $X. to half now

free includes concludes million quarter covered expect payments $XXX to Additionally, we and in $XXX the in in the flow prepared generate the between received That to agreement. which second adjusted relating million be remarks. half, of cash our periods fourth to Comcast prior

the Let's now open to your questions. call

Operator

[Operator take please first go you. our Thank ahead. question. Instructions] Caller, We will

Eric Wold

now? Hi. Riley hear you. Wold Eric guys It's Can B. Securities. Thank from me you

Operator

Yes.

Jon Kirchner

Yes.

Eric Wold

perfect. Perfect,

obviously increase So, in basis is or slug those about going is around guidance, couple of up I $XX consistent million revenue a number we million variability a should baseline on a Comcast that been It's $XXX that a you license from congrats guess, subscribers? IP done. guess on number talked potential signed, on years. the to there of a million for when I getting questions was after $XXX assume that fixed the

Jon Kirchner

are the of itself terms The agreement confidential.

can't really and describe I'm So going that to it's I afraid. of going just the specifics can't structure occur get contract. how into I the forward.

difference the I and for basis, that a looking feel million. on think give we're $XXX at the between so an annual will million think $XXX what increase I you the

Eric Wold

sorry. Okay. That's fair. Go ahead,

Robert Andersen

licensing to is U.S. just the program. think, was, I'd broader consistent thing on going was with I our say, concluded the terms I only that license just add Eric Pay-TV

Eric Wold

Okay.

other in know $XXX million that license So any two about I base, the talked million to over years? helping three are it, there you and call next, renewals there anything discussions license $XXX significant renewals, number this with is the new –

Robert Andersen

and a I think those I every take that, we're can have we year. pass renewals successful We've at which is achieving renewals. very been actually

you So, of time certainly, licenses of any that period I'm that. not there some the of are during that degrees aware renewed maybe significant mentioned.

Eric Wold

pursuits it there's with license the significant be spend, that in in current to upward be to revenue? license one Obviously it Is assuming is into a the on that Got recycled going the for just going final that EBITDA savings? moving a to nice end? litigation litigation amount then savings represent boost is plan what with of me. also other to on along and Or addition litigation

Robert Andersen

trying It's spend extent to litigation spend tricky will forecast on always Yes. to I that litigation the we don't that down. think that flow

going not we're So elsewhere. use it to

Eric Wold

Very you helpful. guys. Thank

Robert Andersen

Welcome.

Operator

please ahead. and ahead Caller, And question. our take go we'll go next

Richard Shannon

Shannon [Craig-Hallum here. Group] you Can Richard hear Hi, guys. me? Capital

Jon Kirchner

Yes. Hi, Richard.

Robert Andersen

Yes. Hi, Richard.

Richard Shannon

Okay. sure new conferencing wasn’t platform. Getting used I to if… this

Jon Kirchner

Sure.

Richard Shannon

you the get get also or process then the well, your couple fourth side next to we estimate kind maybe a well Robert rate I And OpEx Can think of sense what give get Pay-TV a I a year? on as to number what start rates tax thought run your you for and – should quarter as in us guess Let's see run we here. want here, in to that the going a timeframe? you're How rate for with think can like… of an about thought

Robert Andersen

Sure.

for We'll So year still next in early kind through OpEx provide I February. we're for be that giving our think to It's us working plans. guidance. normally of any just

going as think looking for we're the primarily into that year be synergy down that I we'll spend next that year-over-year working can. operating can and work operational we expect obviously our would we on would you savings get be

of rate as year. In to guide provide hoping tax, next tax through non-GAAP terms we I'm out a

but February. as proper it, from a if do feel basis, roughly guide XX%. give a a non-GAAP talking I'll specifics in give will you we're can If at I you it's cash on at we figure that a it we're least for think more looking basis, tax

Richard Shannon

enough. fair Okay,

jump here. Stream to the for XK me TiVo over Jon Let

and and of laid good like going progress, out about getting Jon, how Phase give goals a get I after five sounds how Smart of remember I going? TVs, phases X and visibility of commercialization it the basis if here next described how well embedded you guess you the a well months applications, combination I expecting you You've this I correctly. year, going? I’m curious Can is better are sense a would with think, of you're X here. update, of your end is Phase us of When having that's those an about of think by kind TiVo

Jon Kirchner

in So, I I issues how for year the be cycles how of to we're good on code of can we also better out would going the a go, to think, bit expect into the I the space, given looks technical quarter productive different there visibility TV planning having, general. the of basically back the us discussions nature what's we porting talking a would of say the little I in half just of a on the happen manufacturers. in TiVo of think second likely but some ecosystem much what's could before XXXX next and have that to currently into terms not for about embedded overall only stack platform drive –

– U.S., not so, interface in overall, the And I good multi-phased the on approach, that very, to our a content-first happen innings I getting lot is is a approach early but and to would their would best-in-class, like And but I very say think, clearly content-centric, good there's of feedback. is is only progress the think positive TVs. news this

Richard Shannon

updates that my I Perceive. Jon. future Okay. on We'll one, forward last look guess is Fair on question enough. to

ecosystems one thought at can't release, some PC few You engagement to having prepared was. or on in more some seeing press And guess about this was as focus what least your level your the mobile mentioned remarks I thought being good one around security. of I and different remember centered and with had I I a other think in

of if didn't And example? is should an give you that you shipping customers that. mention expansion we what us when that? a sense absence that also focus application mean of You how about then we do and this I'm or feedback diversification are or by an can see in in of change as not a little sure think kind of

Jon Kirchner

Yes.

saying represents I point space discussion mobile in given as I think PC where half power. initial and core low think industries second some incredible of this is represents of for or see or some going other XXXX. neural applications are you're we're can really very, even things don't at computing enterprise the product at in to looking demand doing where that the shifts class, the a deliver across basically at departure algorithms bringing terms network and focus. center have home data the security really the we being slight from to these of you What what interest very in advanced of people it edge

customers. is I on our expansion with of demand the positively. going So there's very of evaluation a and/or marketplace kind diversification fortunately And of lot driving think our these engaging

is ensure space So are months a the we remain expected rate even news more perhaps we the security, to at need to we we think bring good three that that and set out obviously that I seeing think we're than to faster doing as five focused product that. successful ago. the I market interest recently we're to But in to initially

Richard Shannon

Okay.

me. all think I for you guys. Think that's

Jon Kirchner

Thanks, Richard.

Operator

Please Steves We'll ahead. question Mitch and go our Great. ahead next take from go from RBC.

Mitch Steves

I question. the wanted you comments had guys. of just taking my for clarify one to there. Hi, Thanks made

entirely So if line is to were effectively you just with correct announced that's guys the what Comcast in everything trying I'm today? the guidance understand if you basically increasing agreement. excluding else

Jon Kirchner

in-line the half, were is second for the Fundamental, yes, We is. Comcast. change it primary so

Mitch Steves

phrase a this? Okay. unit it loading? is the know end or same And it I exact usually front terms – have opportunity can't how but if you you length of of Is historically guys the in then do secondly, disclose is the very arrangements, agreement, the this like long-term this, I agreement,

Jon Kirchner

with entire over prior initial No. to some course to be periods payment payments an made the of The and agreement provides deal the agreement. for

Mitch Steves

back? goes Okay. far And then how can you this disclose guys

Jon Kirchner

Maybe…

Mitch Steves

Going ahead. yes, back go –

Jon Kirchner

way in all the Sorry, through where the it XXXX. license expired basically it early and up runs XXXX picks

Mitch Steves

initial. is until XXXX now So the

last Okay. then Perfect. just And one.

there. cost, you thirds the guys about terms you I got of two mentioned In know

that that you kind terms $XX target, Now needs be I operations tied you three be better long-term that, the seen much than the that? together, Or million? of years too you've to am out, probably like reading of two, target think synergy do meaning into in could increased

Jon Kirchner

I confident. think we're very

Mitch Steves

ahead. Go ahead. go Sorry,

Robert Andersen

going progress and we our I the million, made obviously just are that. say good internal on more confident to was than $XX but are targets

expect it we'll but Jon don't did. pass I I'll promise go. So get that, I to let want just

Jon Kirchner

Yes. add I that. just to was going

evolve as for think, the think we're more end our I looking as markets and business efficient strategy further always deliver evolves, to result. a I ways

And key opportunities be evolve that focused addition our will so, I well places doing. to I naturally good focus in need that teams as think the right keen the externalities work long-term there and some that. to very very, think obviously are to of the we we're drive our because is growth to But investments in and on

Mitch Steves

lot of more Okay. off making a just are you expected me, one than one money just last guys this. for Then

your to it pay you of your making now going to seems plan in extra I had a like kind to but quite words I the that want guess, what flow... seems So because debt, chance don't put you money with down would you're the do it of guys be mouth, the cash like a is bit

Robert Andersen

continue Comcast that stock eye it agreement plan. call, the the our obviously on proceeds be well. we're finally our beyond will that an to as I debt and the it's on focused getting to with be pay buy to that plan pay on good down. keep during QX will our mentioned as but appropriate, Yes, We'll related question

Mitch Steves

understood. Thank you. Okay,

Operator

And with Please Financial. ahead. go we our question take Khorsand Hamed BWS will and ahead go from next

Hamed Khorsand

Hi.

XK. ask behind you were the Amazon. the product What's guys cost just I you wanted general? the off, talking know your front? that And for does on about Walmart the change that strategy and retail I first in composition for the TiVo So hardware the Stream to and about

Robert Andersen

for the this I we Robert. retail another what view meaningful getting more doesn't change composition. think just as channel product definition It out – avenue consumers. in our way by is cost to is The a

So we may have deals.

the our distributors, same. cost we think I deal the will product the stays primarily with but of

Hamed Khorsand

And then…

Robert Andersen

I the going just think was – to I But one just one thing. sorry, add

given ultimate scales, mix the priced, on to monetization sorry, is I'm it's the an impact how from move around obviously that the ahead. an stack have gross but will software of go a perspective it margins footprint. to nature into as So really product that aggregate that embedded long-term strategy drive and

Hamed Khorsand

And other question had Okay. international side? of the you on this opportunity licensing what the is All I was right. domestic point. then putting larger the focus at side on obviously kind than are much The

at there? So lines paying of are attention other is Or a it full product you looking instead licensing?

Jon Kirchner

Are you licensing? referring to

Hamed Khorsand

I am referring to licensing, yes.

Jon Kirchner

The or patent licensing? product about sorry, question. or on you're clear am software I talking your not licensing I'm

Hamed Khorsand

patents? Are at from looking where forward what a of ask it is licensing you – that's strategy looking Well, what's you standpoint? it at trying the I'm your to you going a now that have product from Are Comcast?

Jon Kirchner

Okay.

touch part Samir a IP So to in of I'll the it ask on second.

our the I to for operate that marketplace. exist user or a our in take people solutions. there think, we There's global world opportunities product around enhancement overall, is licensing software experience basic on like that And as to business entertainment mobile that relates as a relates it in safety well in itself verticals. to in – things in home, to trajectory obviously those car, broad

And lots outside of United today of we do business actively States. the so do

build genuine and now America people solutions the solutions Europe will space, – Latin in opportunity do see certainly to Pay-TV We there's licensing that IPTV opportunity products. obviate, own use order our exists that however, wish people in doesn't licenses third-party their products property either for intellectual or that to That elsewhere. do the may have to and in growth to as the and – need were and use that to to continue Pay-TV

that. over it turn I'll to so Samir talk about And to

Samir Armaly

for try that the talked the is Yes. pleased the about some there to certainly us. was international we We're Jon but continue we've opportunities are a opportunity business largest side, us parallel, on including handful IP where very that strong in opportunities opportunity like said, to a that but worldwide resolved because Canada, a have to outstanding of in have Similarly resolve. Comcast for we're U.S., there leg as there pursuing already, in in areas we'll

Canada a other probably to on is international focus for So some with starting moving regions us, as and well. then

Hamed Khorsand

was specific you're side? side if I one area But IP going to that asking there's or the be about product Okay. is focusing the either on

Samir Armaly

going both. will got strong develop solutions to solutions want customers licensed. businesses want to are I be if think have, in product that they be different or either has both we The and company sides their that the own cannot it's

then what is. irrespective choice and So we customer let their really opportunity are to of decide the able address that

Hamed Khorsand

you. Okay, thank

Operator

right. we'll And our ahead. go Matthew with take question Sidoti. All from next go ahead and Please Galinko

Geri Weinfeld

it. mute Please

Operator

phone. Matthew, I your am you could sorry, just if unmute

Matthew Galinko

Hi. Can hear me? you

Jon Kirchner

Yes.

Matthew Galinko

All right, you. thank

So Hisense you my I mentioned of the on North China, market Enhanced scope I'm that the but I that's for it's market IMAX China, limited? expandable of curious guess can the if question is in into the or deals a sort American think why

Jon Kirchner

in unusual strong It's IMAX of start to a brand domestic to they're terms China. us is not market. with markets working in very local certain the manufacturers for foreign something if in them with get

look be would logical that. do that if they to So

or Europe. particular with folks IMAX I America brands about markets and the program other think naturally we're bringing in in discussions North to their

domestic of of the which iTE, in that process providers embed Chinese these So Tencent program. and stages availability fortunate by pleased manufacturers also think are this influence people validation, obviously content very content your gives But very are TV a and inclined the impacted development market and support reason I just major with to to and sometimes is we're technologies. and sources of to China, – further support tends when plenty

Matthew Galinko

the that development IMAX you market any Got anything it. for – American we should Enhanced the that in of terms what that of North guess, maybe the follow-up are guess – Hisense if over looking quarters? more? – I China, Thanks. develop or to And of U.S. I on milestones Of last see terms the market little than the couple can in be bit for notable a

Jon Kirchner

to manufacturer ecosystems front the we've we support XXXX would bear looking discussions in TV into as as out I typically last further couple get for also productive think around you're seeing that content the on perspective signs say had and brands a you some quarters, expansion, content major more an I of the building And from of very receivers market get game to of thing and like things sound the importance and of the program. then I support eye building ecosystem don't is ultimately contribute product program. on the peripheral bars support an AV mean the of in overlook in positively growth. keep the speakers other and

obviously as there's fast So a we continue the COVID excuse that to remains to, on like we to it is as think that work in of as aware good, than and next I'm it moving indicate not I no me. but you'd positive it's that environment, everything anywhere the sign would other years, look of and forward couple years, couple of next going feedback

Matthew Galinko

business. question one IP on And licensing the Got right. All you. final

You in to continues do have I DRAM that be one the of think lapsed the portfolio. large companies

addressing how that you So I'm on? you're thinking play curious still XXXX could if we're about Thanks. just split the in the are say any if for going and company? business, there discussions Product IP between whether given Or

Jon Kirchner

Sure.

XD but out of focus license as in with and semi-verticals. So Suffice in is we, are continue very, on bonding the say technologies. logic other not think trends market it pleased know, been only very and of related many We've memory, with continued to as the that Micron. hybrid I and receptivity you the

you're at any being related next said of discussions to plenty about, as continue this think sight you, I'm think naturally guide seven be licenses our to Xperi end Micron and we been guided revenue direct structured. just until York over as adoption a or point with the sure, within while of haven't I and it's we've said line has take more and today engage That all as should strong the And consistent contributor this we how sometimes to providing wouldn't segment. prior had you're and But XXXX, a both information up from our three, the New of to going practice both existing considering former. optimally technical we customers, the of we for IP we technology years. five, see and know experience, going

update We'll when February you further we point. at there of on the tuned. stay get that in play So, state based

Matthew Galinko

All right, you. thank

Operator

to the presenters would today's for to back that I like additional closing or session. concludes call And today's question-and-answer any remarks. turn over

Jon Kirchner

with launching XK this Operator, long-term Comcast. today's with license agreement the over with Thank progress team's to a to everyone forward long-term our and call. Mercedes-Benz operator Radio coming thanks ability these concludes footprint, executing you. Connected of incredibly growth Thanks proud significant on unprecedented meeting into expanding entering drivers, you joining navigate key Stream today's call. Sure. and I on our for look many our I'm of made We've including through months. virtually TiVo times.

Operator

your Thank do you. We appreciate concludes Once today's this again, conference. participation.

disconnect your You may phone now lines.

Adeia (ADEA) 10 Nov 202020 Q3 Earnings call transcript