SAN JOSE, Calif. - Xperi (NASDAQ:ADEA) Inc. (NYSE: XPER), an entertainment technology company, has made public a letter from director Christopher Seams in support of two board members facing opposition from activist shareholder Rubric Capital. Seams, who is not targeted by Rubric, emphasized the importance of the directors' expertise in Xperi's ongoing transformation.
The letter, addressed to fellow shareholders, advocates for the re-election of directors Darcy Antonellis and David Habiger, who are being challenged by Rubric's nominees. Seams expressed concern that the nominees, Thomas Lacey and Deborah Conrad, lack relevant experience in Xperi's core business areas and would have a steep learning curve.
Seams recounted the company's shift from a semiconductor IP licensing model to acquiring software and technologies for consumer electronics and automotive manufacturers. He detailed the acquisition of DTS in December 2016 as a pivotal moment in Xperi's transformation. Under CEO Jon Kirchner's leadership, Xperi has since merged with TiVo (NASDAQ:TIVO_old) and split into two public entities, sharpening its focus on software licensing and services.
Antonellis and Habiger's expertise in digital media, technology, and content monetization is touted as crucial for Xperi's strategy. Seams cited their experience in running media-related businesses and understanding the competitive landscape. He contrasted this with the backgrounds of Lacey and Conrad, who specialize in semiconductors, IP licensing, brand marketing, and public relations.
The letter also highlights Xperi's financial achievements, including a 20% return for shareholders over the past year and progress toward revenue and adjusted EBITDA margin goals for 2024. These results are presented as evidence of the board's effective guidance and the company's positive trajectory.
Seams concluded by urging shareholders to vote for Antonellis, Habiger, and the other Xperi director nominees using the BLUE proxy card provided, emphasizing that the board remains open to change and was already seeking candidates with relevant experience prior to Rubric's nominations.
This information is based on a press release statement from Xperi Inc. and reflects the company's current perspective on its board composition, strategic direction, and financial performance.
InvestingPro Insights
Xperi Inc. (NYSE: XPER) has been navigating a transformative period, and its financial metrics provide a deeper understanding of the company's current position. The market capitalization of Xperi stands at $484.98 million, reflecting its valuation in the market as of the last update. Despite the challenges in profitability, with a negative P/E ratio of -3.03 for the last twelve months as of Q4 2023, the company's gross profit margin is robust at 77.25%, indicating strong efficiency in its operations.
From an InvestingPro perspective, Xperi holds more cash than debt on its balance sheet, which could provide financial flexibility in its ongoing transformation. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a solid liquidity position. With analysts predicting Xperi will be profitable this year, there is potential for a positive shift in its earnings landscape. However, it's notable that two analysts have revised their earnings estimates downwards for the upcoming period, indicating potential concerns about future performance.
Investors may find value in exploring the additional 7 InvestingPro Tips available for Xperi, which could provide further insights into the company's financial health and strategic direction. These tips, along with real-time metrics, can be accessed through InvestingPro's platform, and readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As the company approaches its next earnings date on May 8, 2024, stakeholders and interested parties will be watching closely to see how the company's strategic decisions and board composition will influence its financial outcomes and shareholder value.
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