SAN JOSE, Calif. - Xperi (NASDAQ:ADEA) Inc. (NYSE: XPER), a company specializing in entertainment technology, has urged shareholders to vote for its current directors, countering Rubric Capital's campaign to replace two board members. The annual stockholder meeting is set for May 24, 2024, with shareholders of record as of March 28, 2024, eligible to vote.
Xperi's transformation from Tessera, a semiconductor IP licensing firm, to a consumer entertainment technology company has seen it acquire new businesses, separate from its legacy IP licensing, and divest non-core assets. Since the separation in 2022, Xperi reported five consecutive quarters of year-over-year revenue growth through December 31, 2023.
The company highlighted its financial performance, including record-high adjusted EBITDA and margins, and its progress in executing across its businesses. Xperi anticipates continued revenue growth and margin expansion, with forecasts to approximately double its adjusted EBITDA margin in 2024.
Rubric Capital, however, has nominated two candidates to replace half of Xperi's independent directors. Xperi's board contends that Rubric's nominees lack additive skills to the current directors and has not provided concrete recommendations for improvement. Despite engagement efforts, Rubric has reportedly declined proposals that did not include appointing its candidate, Tom Lacey, as Board Chair.
Xperi's board emphasizes the importance of the upcoming vote, recommending stockholders to support its five nominees, who have been instrumental in the company's transformation. The board advises against Rubric's candidates, warning that their election could reverse progress and weaken the board's capabilities.
The information is based on a press release statement from Xperi Inc.
InvestingPro Insights
As Xperi Inc. (NYSE: XPER) approaches its annual stockholder meeting, the company's financials and operational metrics offer a glimpse into its current standing and future potential. With a market capitalization of $438.14 million, Xperi's valuation reflects its position in the entertainment technology sector. Despite facing challenges, the company's impressive gross profit margin of 77.25% for the last twelve months as of Q4 2023 demonstrates its ability to maintain profitability in core operations.
An InvestingPro Tip highlights that Xperi holds more cash than debt on its balance sheet, which is a positive sign of financial stability. Moreover, the company's liquid assets exceed its short-term obligations, indicating a healthy liquidity position that could support ongoing operations and strategic initiatives.
While analysts have revised their earnings downwards for the upcoming period, it's noteworthy that they predict Xperi will be profitable this year. This forecast aligns with Xperi's own expectations for continued revenue growth and margin expansion, aiming to double its adjusted EBITDA margin in 2024. These insights suggest that investors should closely monitor the company's future earnings reports and management's execution of their strategic plan.
For more detailed analysis and additional InvestingPro Tips, including whether Xperi will start providing dividends to shareholders or how its revenue growth compares to industry peers, investors can visit Investing.com/pro/XPER. There are currently 6 more tips available on InvestingPro. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enriching your investment strategy with real-time data and expert insights.
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