Xperi Corporation (NASDAQ:XPER) Q2 2017 Earnings Conference Call - Final Transcript

Jul 27, 2017 • 05:00 pm ET


Xperi Corporation (NASDAQ:XPER) Q2 2017 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, thank you for standing by. Welcome to the Xperi Second Quarter 2017 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the call will be opened for questions. [Operator Instructions] This call is being recorded today Thursday, July 27, 2017.

I would now like to turn the call over to Geri Weinfeld, Senior Director of Investor Relations for Xperi. Geri, please go ahead.

Geri Weinfeld

Good afternoon, everyone. Thanks for joining us as we report our second quarter fiscal year 2017 financial results. With me on the call today are Jon Kirchner CEO; and Robert Anderson, CFO.

Before we begin, I would like to provide two reminders. First, today's discussion contains forward-looking statements that are predictions, projections or other statements about future events, which are based on management's current expectation and beliefs and therefore subject to risks, uncertainties and changes in circumstances. Please refer to the Risk Factors section in our SEC filings, including our most recent Forms 10-K and 10-Q for more information on the risks and uncertainties that could cause our actual results to differ materially from what we discuss today. Please note that the company does not intend to update or alter these forward-looking statements to reflect events or circumstances arising after this call.

Second, we refer to certain non-GAAP financial measures, which exclude discontinued operations, restructuring and other exit costs, acquisition and related expenses, acquired intangible asset amortization, charges for acquired in-process research and development, stock-based compensation expense, impairment charges on long-lived assets and goodwill, expense reductions from insurance recoveries and imputing an estimated 31.5% effective tax rate on the non-GAAP pretax earnings of the Company. We have provided reconciliations of these non-GAAP measures to the most directly comparable GAAP measures in the earnings release and on the Investor Relations section of our website. A recording of this conference call will be available on our Investor Relations website at www.xperi.com and unauthorized recording of this webcast is not permitted.

I'll now turn the call over to Jon Kirchner?

Jon Kirchner

Thanks Geri and thanks to everyone for joining us today. We've a lot to cover on today's call. I'll start by providing an update on the Samsung relicensing and Broadcom legal matters. I'll follow that with an overview of the quarter, including an update on the status of the DTS integration, and the progress we've made in each of our markets. Robert will finish the call with a discussion around our Q2 financials and our outlook for Q3 and the remainder of the year.

Results for the quarter were very good, with revenue at the high end of our outlook and our non-GAAP EPS exceeding the high end of our guidance range. With regard to Samsung and Broadcom, we've seen progress through constructive dialogue. It's important to recognize that these discussions are very dynamic. Last quarter we told you that the ITC case would provide important data in the Broadcom discussions and that we were working to renew