EX-99.1 2 adea-ex99_1.htm EX-99.1 EX-99.1

 

 

Exhibit 99.1

FOR IMMEDIATE RELEASE

img89383942_0.jpg 

 

ADEIA ANNOUNCES SECOND QUARTER 2024 FINANCIAL RESULTS

 

Repriced term loan for annual interest expense savings of approximately $3 million

Generated over $90 million in cash from operations in the first half of 2024

SAN JOSE, Calif. – August 6, 2024 – Adeia Inc. (Nasdaq: ADEA) (the “Company” or “Adeia”) today announced financial results for the second quarter ended June 30, 2024.

“We delivered revenue of $87.4 million in the second quarter, in line with our expectations, and generated over $90 million in cash from operations in the first two quarters of 2024” said Paul E. Davis, chief executive officer of Adeia. “We signed 5 deals, demonstrating success across diverse end markets in social media, consumer electronics, semiconductor and Pay-TV, including a multi-year license renewal with X Corp. (formerly Twitter) that resolved all outstanding litigation between the two companies. Our deal momentum in the quarter further validates the strength and value of our IP portfolios across multiple verticals, fueled by our continued dedication to innovation. We are pleased with the progress we have made on key strategic initiatives and we are on-track to achieve our objectives and goals for 2024.”

Second Quarter Financial Highlights

Revenue was $87.4 million as compared to $83.4 million in the first quarter of 2024
GAAP diluted earnings per share (EPS) was $0.07 and non-GAAP diluted EPS was $0.28
GAAP net income was $8.4 million and adjusted EBITDA was $52.8 million
Cash flows from operations was $23.5 million
Repriced term-loan which lowered our interest rate by 61 basis points and increased our financial flexibility

Business Highlights

Signed 5 agreements across diverse end-markets including social media, consumer electronics, semiconductor and Pay-TV
X Corp., formerly known as Twitter, signed a multi-year renewal for access to our media portfolio that resolved all outstanding litigation between the two companies
Panasonic, a global provider of connected TVs, signed a multi-year renewal for access to our media portfolio
Hamamatsu, a pioneer in optical sensors, light sources and systems, signed a new license for access to our die-to-wafer hybrid bonding technology
Signed multi-year renewals with two regional U.S. Pay-TV providers for access to our media portfolio
Following the close of the quarter, signed a multi-year renewal with Liberty Global, a European Pay-TV provider, for access to our media portfolio

Capital Allocation

During the quarter, the Company made $12.0 million in principal payments towards its term loan, bringing the outstanding balance to $549.1 million as of June 30, 2024.

On June 18, 2024, the Company distributed $5.4 million to stockholders of record on May 28, 2024, for a quarterly cash dividend of $0.05 per share of common stock.

On July 24, 2024, the Board of Directors declared a dividend of $0.05 per share of common stock, payable on September 17, 2024, to stockholders of record on August 27, 2024.

 


 

 

Financial Outlook

The Company is reiterating its prior full-year 2024 revenue outlook, and updating certain other items of its financial outlook to reflect lower operating expenses and lower interest expense for the year:

Category
(in millions, except for tax rate)

 

2024
GAAP Outlook

 

2024
Non-GAAP Outlook

 

 

Updated

 

Prior

 

Updated

 

Prior

Revenue

 

$380.0 − 420.0

 

$380.0 − 420.0

 

$380.0 − 420.0

 

$380.0 − 420.0

Operating expenses(1)

 

$249.0 − 263.0

 

$254.0 − 268.0

 

$145.0 − 155.0

 

$150.0 − 160.0

Interest expense

 

$52.0 − 55.0

 

$54.0 − 57.0

 

$52.0 − 55.0

 

$54.0 − 57.0

Other income

 

$5.0 − 6.0

 

$5.0 − 6.0

 

$5.0 − 6.0

 

$5.0 − 6.0

Tax rate

 

15% − 30%

 

15% − 30%

 

23%

 

23%

Net income(2)

 

$71.4 − 75.6

 

$65.4 − 70.7

 

$144.8 − 166.3

 

$139.4 − 160.9

Adjusted EBITDA(2)

 

N/A

 

N/A

 

$237.5 − 267.5

 

$232.5 − 262.5

Diluted shares outstanding

 

113.0 − 114.0

 

114.0 − 115.0

 

113.0 − 114.0

 

114.0 − 115.0

(1) See tables for reconciliation of GAAP to non-GAAP operating expenses

(2) See tables for reconciliation of GAAP net income to (i) non-GAAP net income and (ii) adjusted earnings before interest expense, income taxes, depreciation and amortization (adjusted EBITDA)

Conference Call Information

The Company will hold its second quarter 2024 earnings conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on Tuesday, August 6, 2024. To access the call in the U.S., please dial +1 (888) 660-6411, and for international callers, dial +1 (929) 203-0849. All participants should dial in 15 minutes prior to the start of the conference call. The Company also suggests utilizing the webcast link to access the live call and the replay at Q2 2024 Earnings Call Webcast.

Safe Harbor Statement

This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information available to the Company as of the date hereof, as well as the Company’s current expectations, assumptions, estimates and projections that involve risks and uncertainties. In this context, forward-looking statements often address expected future business, financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “target,” similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond the Company’s control, and are not guarantees of future results. Forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: the Company’s ability to implement its business strategy; the Company’s ability to enter into new and renewal license agreements with customers on favorable terms; the Company’s ability to retain and hire key personnel; uncertainty as to the long-term value of the Company’s common stock; legislative, regulatory and economic developments affecting the Company’s business; general economic and market developments and conditions; the Company’s ability to grow and expand its patent portfolios; changes in technology and development of new technology in the industries in which in which the Company operates; the evolving legal, regulatory and tax regimes under which the Company operates; unforeseen liabilities and expenses; risks associated with the Company’s indebtedness; the Company’s ability to achieve the intended benefits of, and its ability to recognize the anticipated tax treatment of, the spin-off of its product business; unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, natural disasters and future outbreaks or pandemics, each of which may have an adverse impact on the Company’s business, results of operations, and financial condition. These risks, as well as other risks associated with the Company’s business, are more fully discussed in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. While the list of factors presented here is, and the list of factors presented in the Company’s filings with the SEC are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.

Causes of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations, liquidity or trading price of common stock. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

 


 

 

About Adeia Inc.

Adeia is a leading R&D and intellectual property (IP) licensing company that accelerates the adoption of innovative technologies in the media and semiconductor industries. Adeia’s fundamental innovations underpin technology solutions that are shaping and elevating the future of digital entertainment and electronics. Adeia’s IP portfolios power the connected devices that touch the lives of millions of people around the world every day as they live, work and play. For more, please visit www.adeia.com.

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company’s earnings release contains non-GAAP financial measures adjusted, where applicable, for either one-time or ongoing non-cash acquired intangibles amortization charges, costs related to actual or planned business combinations including transaction fees, integration costs, severance, facility closures, and retention bonuses, separation costs, all forms of stock-based compensation, loss on debt extinguishment, expensed debt refinancing costs, impairment of intangible assets, impact of certain foreign currency adjustments, discontinued operations and related tax effects. In addition, adjusted EBITDA adjusts for recurring charges of interest expense, income taxes, depreciation and amortization. Management believes that the non-GAAP measures used in this release provide investors with important perspectives on the Company’s ongoing business and financial performance and are helpful to provide investors with an understanding of our core operating results reflecting our normal business operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Our use of non-GAAP financial measures has certain limitations in that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as adjusted EBITDA, non-GAAP operating expenses, non-GAAP net income and non-GAAP diluted earnings per share (EPS) do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached hereto. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. All financial data is presented on a GAAP basis except where the Company indicates its presentation is on a non-GAAP basis.

Set forth below are reconciliations of the Company’s reported and forecasted GAAP to non-GAAP financial metrics.

Investor Contact:

Chris Chaney

Vice President, Investor Relations

IR@adeia.com

– Tables Follow –

SOURCE: ADEIA INC.

ADEA

 


 

 

 


 

 

 

 

 

 

ADEIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,
2024

 

 

June 30,
2023

 

 

June 30,
2024

 

 

June 30,
2023

 

Revenue

 

$

87,350

 

 

$

83,217

 

 

$

170,755

 

 

$

200,524

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

14,799

 

 

 

13,116

 

 

 

28,724

 

 

 

26,127

 

Selling, general and administrative

 

 

24,617

 

 

 

26,394

 

 

 

48,646

 

 

 

49,256

 

Amortization expense

 

 

20,030

 

 

 

23,650

 

 

 

43,187

 

 

 

47,339

 

Litigation expense

 

 

4,262

 

 

 

2,334

 

 

 

7,192

 

 

 

4,956

 

Total operating expenses

 

 

63,708

 

 

 

65,494

 

 

 

127,749

 

 

 

127,678

 

Operating income

 

 

23,642

 

 

 

17,723

 

 

 

43,006

 

 

 

72,846

 

Interest expense

 

 

(13,296

)

 

 

(15,540

)

 

 

(27,471

)

 

 

(31,478

)

Other income and expense, net

 

 

1,428

 

 

 

1,617

 

 

 

2,828

 

 

 

3,237

 

Loss on debt extinguishment

 

 

(453

)

 

 

 

 

 

(453

)

 

 

 

Income before income taxes

 

 

11,321

 

 

 

3,800

 

 

 

17,910

 

 

 

44,605

 

Provision for income taxes

 

 

2,939

 

 

 

2,381

 

 

 

8,629

 

 

 

14,165

 

Net income

 

$

8,382

 

 

$

1,419

 

 

$

9,281

 

 

$

30,440

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.08

 

 

$

0.01

 

 

$

0.09

 

 

$

0.29

 

Diluted

 

$

0.07

 

 

$

0.01

 

 

$

0.08

 

 

$

0.27

 

Weighted average number of shares used in per share calculations:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

108,667

 

 

 

106,464

 

 

 

108,216

 

 

 

106,027

 

Diluted

 

 

112,536

 

 

 

112,775

 

 

 

112,757

 

 

 

113,105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

ADEIA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

 

June 30,

 

 

December 31,

 

 

 

2024

 

 

2023

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

66,454

 

 

$

54,560

 

Marketable securities

 

 

27,997

 

 

 

29,012

 

Accounts receivable, net

 

 

25,735

 

 

 

39,651

 

Unbilled contracts receivable

 

 

89,187

 

 

 

74,919

 

Other current assets

 

 

10,010

 

 

 

7,700

 

Total current assets

 

 

219,383

 

 

 

205,842

 

Long-term unbilled contracts receivable

 

 

63,943

 

 

 

73,843

 

Property and equipment, net

 

 

6,704

 

 

 

6,971

 

Operating lease right-of-use assets

 

 

9,121

 

 

 

9,484

 

Intangible assets, net

 

 

310,961

 

 

 

347,172

 

Goodwill

 

 

313,660

 

 

 

313,660

 

Long-term income tax receivable

 

 

113,816

 

 

 

120,338

 

Other long-term assets

 

 

31,086

 

 

 

28,246

 

Total assets

 

$

1,068,674

 

 

$

1,105,556

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

4,788

 

 

$

9,623

 

Accrued liabilities

 

 

16,751

 

 

 

19,138

 

Current portion of long-term debt, net

 

 

24,753

 

 

 

66,145

 

Deferred revenue

 

 

26,931

 

 

 

7,132

 

Total current liabilities

 

 

73,223

 

 

 

102,038

 

Deferred revenue, less current portion

 

 

15,113

 

 

 

17,672

 

Long-term debt, net

 

 

510,857

 

 

 

519,550

 

Noncurrent operating lease liabilities

 

 

9,412

 

 

 

9,730

 

Long-term income tax payable

 

 

81,846

 

 

 

81,834

 

Other long-term liabilities

 

 

19,087

 

 

 

18,110

 

Total liabilities

 

 

709,538

 

 

 

748,934

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

Common stock

 

 

123

 

 

 

121

 

Additional paid-in capital

 

 

637,752

 

 

 

635,331

 

Treasury stock at cost

 

 

(231,599

)

 

 

(222,497

)

Accumulated other comprehensive loss

 

 

(96

)

 

 

(8

)

Accumulated deficit

 

 

(47,044

)

 

 

(56,325

)

Total stockholders’ equity

 

 

359,136

 

 

 

356,622

 

Total liabilities and equity

 

$

1,068,674

 

 

$

1,105,556

 

 

 


 

 

 

 

ADEIA INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

Six Months Ended

 

 

 

June 30,
2024

 

 

June 30,
2023

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

9,281

 

 

$

30,440

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

Depreciation of property and equipment

 

 

1,010

 

 

 

769

 

Amortization of intangible assets

 

 

43,187

 

 

 

47,339

 

Stock-based compensation expense

 

 

11,737

 

 

 

8,196

 

Deferred income tax

 

 

(3,596

)

 

 

1,501

 

Loss on debt extinguishment

 

 

453

 

 

 

 

Amortization of debt issuance costs

 

 

1,601

 

 

 

2,239

 

Other

 

 

(1,272

)

 

 

493

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

14,666

 

 

 

27,708

 

Unbilled contracts receivable

 

 

(4,368

)

 

 

(25,467

)

Other assets

 

 

5,331

 

 

 

6,868

 

Accounts payable

 

 

(2,864

)

 

 

6,987

 

Accrued and other liabilities

 

 

(1,716

)

 

 

(16,447

)

Deferred revenue

 

 

17,240

 

 

 

1,442

 

Net cash from operating activities

 

 

90,690

 

 

 

92,068

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1,214

)

 

 

(1,545

)

Purchases of intangible assets

 

 

(8,476

)

 

 

(95

)

Purchases of short-term investments

 

 

(18,701

)

 

 

(23,766

)

Proceeds from maturities of investments

 

 

20,150

 

 

 

 

Net cash from investing activities

 

 

(8,241

)

 

 

(25,406

)

Cash flows from financing activities:

 

 

 

 

 

 

Dividends paid

 

 

(10,853

)

 

 

(10,636

)

Repayment of debt

 

 

(52,139

)

 

 

(103,750

)

Proceeds from employee stock purchase program and exercise of stock options

 

 

1,539

 

 

 

1,130

 

Repurchases of common stock for tax withholdings on equity awards

 

 

(9,102

)

 

 

(7,491

)

Net cash from financing activities

 

 

(70,555

)

 

 

(120,747

)

Net increase (decrease) in cash and cash equivalents

 

 

11,894

 

 

 

(54,085

)

Cash and cash equivalents at beginning of period

 

 

54,560

 

 

 

114,555

 

Cash and cash equivalents at end of period

 

$

66,454

 

 

$

60,470

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

ADEIA INC.

GAAP TO NON-GAAP RECONCILIATIONS

(in thousands, except per share amounts)

(unaudited)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,
2024

 

 

June 30,
2023

 

 

June 30,
2024

 

 

June 30,
2023

 

GAAP net income

 

$

8,382

 

 

$

1,419

 

 

$

9,281

 

 

$

30,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to GAAP net income:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

1,093

 

 

 

736

 

 

 

1,902

 

 

 

1,330

 

Selling, general and administrative

 

 

5,499

 

 

 

3,820

 

 

 

9,835

 

 

 

6,866

 

Amortization expense

 

 

20,030

 

 

 

23,650

 

 

 

43,187

 

 

 

47,339

 

Transaction costs recorded in selling, general and administrative

 

 

1,255

 

 

 

 

 

 

1,255

 

 

 

 

Separation and other related costs recorded in selling, general and administrative (1)

 

 

767

 

 

 

5,306

 

 

 

2,591

 

 

 

8,308

 

Severance and retention costs recorded in selling, general and administrative

 

 

 

 

 

78

 

 

 

 

 

 

78

 

Total operating expenses adjustments

 

 

28,644

 

 

 

33,590

 

 

 

58,770

 

 

 

63,921

 

Other income and expense, net

 

 

 

 

 

 

 

 

 

 

 

(302

)

Loss on debt extinguishment

 

 

453

 

 

 

 

 

 

453

 

 

 

 

Non-GAAP tax adjustment (2)

 

 

(6,357

)

 

 

(6,218

)

 

 

(9,111

)

 

 

(10,726

)

Non-GAAP net income

 

$

31,122

 

 

$

28,791

 

 

$

59,393

 

 

$

83,333

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted income per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,
2024

 

 

June 30,
2023

 

 

June 30,
2024

 

 

June 30,
2023

 

GAAP diluted income per share

 

$

0.07

 

 

$

0.01

 

 

$

0.08

 

 

$

0.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to GAAP diluted income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

0.01

 

 

 

0.01

 

 

 

0.02

 

 

 

0.01

 

Selling, general and administrative

 

 

0.05

 

 

 

0.03

 

 

 

0.09

 

 

 

0.06

 

Amortization expense

 

 

0.18

 

 

 

0.21

 

 

 

0.38

 

 

 

0.42

 

Transaction costs recorded in selling, general and administrative

 

 

0.01

 

 

 

 

 

 

0.01

 

 

 

 

Separation and other related costs recorded in selling, general and administrative (1)

 

 

0.01

 

 

 

0.05

 

 

 

0.02

 

 

 

0.07

 

Total operating expenses adjustments

 

 

0.26

 

 

 

0.30

 

 

 

0.52

 

 

 

0.56

 

Other income and expense, net

 

 

 

 

 

 

 

 

 

 

 

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP tax adjustment (2)

 

 

(0.05

)

 

 

(0.05

)

 

 

(0.07

)

 

 

(0.09

)

Non-GAAP diluted income per share

 

$

0.28

 

 

$

0.26

 

 

$

0.53

 

 

$

0.74

 

(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including fees for financial advisory and other professional services, and expenses incurred on a transitional basis under a contract shared with Xperi Inc.

(2) The provision for income taxes is adjusted to reflect the net income tax effects of the various non-GAAP pretax adjustments.

 


 

 

 

 

ADEIA INC.

GAAP NET INCOME TO

ADJUSTED EBITDA RECONCILIATION

(in thousands)

(unaudited)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,
2024

 

 

June 30,
2023

 

 

June 30,
2024

 

 

June 30,
2023

 

GAAP net income

 

$

8,382

 

 

$

1,419

 

 

$

9,281

 

 

$

30,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to GAAP net income:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

1,093

 

 

 

736

 

 

 

1,902

 

 

 

1,330

 

Selling, general and administrative

 

 

5,499

 

 

 

3,820

 

 

 

9,835

 

 

 

6,866

 

Transaction costs recorded in selling, general and administrative

 

 

1,255

 

 

 

 

 

 

1,255

 

 

 

 

Separation and other related costs recorded in selling, general and administrative (1)

 

 

767

 

 

 

5,306

 

 

 

2,591

 

 

 

8,308

 

Severance and retention costs recorded in selling, general and administrative

 

 

 

 

 

78

 

 

 

 

 

 

78

 

Amortization expense

 

 

20,030

 

 

 

23,650

 

 

 

43,187

 

 

 

47,339

 

Depreciation expense

 

 

490

 

 

 

385

 

 

 

1,010

 

 

 

769

 

Interest expense

 

 

13,296

 

 

 

15,540

 

 

 

27,471

 

 

 

31,478

 

Other income and expense, net

 

 

(1,428

)

 

 

(1,617

)

 

 

(2,828

)

 

 

(3,237

)

Loss on debt extinguishment

 

 

453

 

 

 

 

 

 

453

 

 

 

 

Provision for income taxes

 

 

2,939

 

 

 

2,381

 

 

 

8,629

 

 

 

14,165

 

Adjusted EBITDA

 

$

52,776

 

 

$

51,698

 

 

$

102,786

 

 

$

137,536

 

(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including expenses incurred on a transitional basis under a contract shared with Xperi Inc.

 

ADEIA INC.

RECONCILIATION FOR GUIDANCE

ON OPERATING EXPENSES

(in millions)

(unaudited)

 

Year Ended

 

 

December 31, 2024

 

 

Low

 

 

High

 

GAAP operating expenses

$

249.0

 

 

$

263.0

 

Amortization expense

 

72.0

 

 

 

72.0

 

Stock-based compensation expense

 

24.0

 

 

 

26.0

 

Separation and related costs (1)

 

8.0

 

 

 

10.0

 

Total of non-GAAP adjustments

 

104.0

 

 

 

108.0

 

Non-GAAP operating expenses

$

145.0

 

 

$

155.0

 

(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including expenses incurred on a transitional basis under a contract shared with Xperi Inc.

 


 

 

 

 

ADEIA INC.

RECONCILIATION FOR GUIDANCE

ON NET INCOME

(in millions)

(unaudited)

 

Year Ended

 

 

December 31, 2024

 

 

Low

 

 

High

 

GAAP net income

$

71.4

 

 

$

75.6

 

Amortization expense

 

72.0

 

 

 

72.0

 

Stock-based compensation expense

 

24.0

 

 

 

26.0

 

Separation and related costs (1)

 

8.0

 

 

 

10.0

 

Total of non-GAAP operating expenses

 

104.0

 

 

 

108.0

 

Non-GAAP tax adjustment (2)

 

(30.6

)

 

 

(17.3

)

Non-GAAP net income

$

144.8

 

 

$

166.3

 

(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including expenses incurred on a transitional basis under a contract shared with Xperi Inc.

(2) The provision for income taxes is adjusted to reflect the net income tax effects of the various non-GAAP pretax adjustments.

 

 

ADEIA INC.

RECONCILIATION FOR GUIDANCE ON

ADJUSTED EBITDA

(in millions)

(unaudited)

 

Year Ended

 

 

December 31, 2024

 

 

Low

 

 

High

 

GAAP net income

$

71.4

 

 

$

75.6

 

Stock-based compensation expense

 

24.0

 

 

 

26.0

 

Separation and related costs (1)

 

8.0

 

 

 

10.0

 

Amortization expense

 

72.0

 

 

 

72.0

 

Depreciation expense

 

2.5

 

 

 

2.5

 

Interest expense

 

52.0

 

 

 

55.0

 

Other income

 

(5.0

)

 

 

(6.0

)

Income tax expense

 

12.6

 

 

 

32.4

 

Total of non-GAAP adjustments

 

166.1

 

 

 

191.9

 

Adjusted EBITDA

$

237.5

 

 

$

267.5

 

(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including expenses incurred on a transitional basis under a contract shared with Xperi Inc.