SAN JOSE - Xperi (NASDAQ:ADEA) Inc. (NYSE: XPER), a technology company, has received recommendations from three major U.S. proxy advisory firms—Egan-Jones Ratings Company, Institutional Shareholder Services Inc. (ISS), and Glass, Lewis & Co., LLC (Glass Lewis)—to vote in favor of all five of the company's director nominees using the BLUE proxy card. The endorsements come as Xperi prepares for its Annual Meeting of Stockholders scheduled for May 24, 2024.
Egan-Jones, the latest to advocate for the current board, cited the unwarranted disruption a change in leadership could cause amidst the company's ongoing transformation. The firm acknowledged Xperi's "compelling transformation strategy" since the Adeia spin-off in 2022, highlighting the company's strong revenue growth, expanded Adjusted EBITDA margins, and positive total shareholder return (TSR), which reportedly outperformed its peers.
ISS also supported Xperi's nominees, referencing the company's successful execution of its strategic plan post-spin-off and noting the absence of a need for board-level changes. Glass Lewis expressed similar sentiments, suggesting that the case for altering the status quo presented by Rubric Capital Master Fund LP, which has nominated two candidates to replace half of Xperi's independent directors, falls short.
The board of Xperi welcomed the unanimous support from the advisory firms, interpreting it as a strong endorsement of the board and leadership team's actions aimed at transforming the company for sustainable, profitable growth. The board is urging stockholders to vote for its five skilled and experienced director candidates and to withhold votes for Rubric's nominees.
Xperi, known for inventing and delivering technologies that enable extraordinary experiences through brands like DTS®, HD Radio™, and TiVo (NASDAQ:TIVO_old)®, as well as its startup Perceive, has integrated its technologies into billions of consumer devices and media platforms globally.
This news is based on a press release statement, and investors are encouraged to read the proxy statement and other relevant documents filed with the Securities and Exchange Commission for more detailed information regarding the solicitation.
InvestingPro Insights
As Xperi Inc. (NYSE: XPER) approaches its Annual Meeting of Stockholders with endorsements from prominent advisory firms, the company's financial health and market performance are of keen interest to investors.
According to InvestingPro data, Xperi boasts a substantial gross profit margin of 76.51% for the last twelve months as of Q1 2024, indicating a strong ability to control costs relative to its revenue of $513.34M. This impressive margin underpins the firm's financial stability and supports the "compelling transformation strategy" noted by Egan-Jones.
Investors should note that despite the recent endorsements, Xperi's stock has experienced significant volatility, with a one-week price total return showing a decrease of 7.64%. This could reflect market reactions to broader economic trends or company-specific events, emphasizing the importance of due diligence and monitoring of real-time market data.
The company's forward-looking prospects appear to be cautiously optimistic, with analysts predicting Xperi will turn profitable this year, as per one of the InvestingPro Tips. This projection is particularly relevant for investors considering the long-term potential of the company, especially in light of its strategic initiatives post-spin-off.
For those interested in more in-depth analysis and additional insights, InvestingPro offers a wealth of information, including more InvestingPro Tips. There are 6 additional tips available for Xperi on the InvestingPro platform, which can be accessed with the coupon code PRONEWS24 for an extra 10% off a yearly or biyearly Pro and Pro+ subscription. The tips provide a more granular view of the company's financial health, operational performance, and market position, which could be invaluable for making informed investment decisions.
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