SAN JOSE, Calif. - Xperi (NASDAQ:ADEA) Inc. (NYSE: XPER), a technology company, has received a recommendation from Glass Lewis & Co., an independent proxy advisory firm, for its stockholders to vote in favor of the company's director nominees. This recommendation comes ahead of Xperi's Annual Meeting of Stockholders scheduled for May 24, 2024, and follows a similar endorsement by Institutional Shareholder Services.
Glass Lewis concluded that Rubric Capital Management, a stockholder that proposed alternative board candidates, did not present a strong enough case for changing the board's composition. The advisory firm also dismissed Rubric's claims that Xperi has underperformed or failed to meet guidance, pointing out that consensus estimates for Xperi's 2024 revenue and EBITDA margin align with the company's targets.
In assessing Xperi's capital allocation decisions, Glass Lewis noted the sale of AutoSense and the strategic review process for Perceive as prudent moves. The firm also found no misalignment in executive compensation programs with the company's performance.
Concerns were raised by Glass Lewis regarding the qualifications of Rubric's nominees, questioning their alignment with Xperi's current business focus and potential conflicts of interest.
Xperi's board expressed satisfaction with the support from both Glass Lewis and ISS, urging stockholders to vote for the incumbent board to maintain the company's strategic direction and performance.
The board recommends stockholders to vote for all five of Xperi's director candidates and withhold votes from Rubric's nominees using the blue proxy card.
The company, known for its brands DTS®, HD Radio™, and TiVo (NASDAQ:TIVO_old)®, specializes in technologies that power consumer devices and media platforms. Xperi's recent strategic decisions include a share repurchase program and the sale of AutoSense, aimed at increasing financial flexibility.
This article is based on a press release statement from Xperi Inc.
InvestingPro Insights
In the midst of proxy advisory endorsements and strategic corporate maneuvers, Xperi Inc. (NYSE: XPER) presents a mixed financial landscape according to InvestingPro data. With a market capitalization of $455.09 million, the company has demonstrated impressive gross profit margins of 76.51% over the last twelve months as of Q1 2024. This metric is particularly noteworthy as it underscores the company's ability to effectively manage its cost of goods sold and maintain profitability in its core operations.
InvestingPro Tips suggest that Xperi's liquid assets exceed its short-term obligations, which could provide the company with a cushion to navigate any immediate financial challenges. Additionally, the company operates with a moderate level of debt, which may afford it some financial flexibility. However, it's important to note that Xperi has not been profitable over the last twelve months, but analysts predict the company will turn profitable this year.
While Xperi does not pay a dividend, which might deter income-focused investors, the focus on improving financial performance could be a sign of potential for capital gains. The company's share price has seen a 1-year total return of 3.49%, indicating some positive investor sentiment. For a deeper dive into Xperi's financial health and future prospects, there are 5 additional InvestingPro Tips available, which could be of significant value to investors considering this stock.
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