Xperi Corporation (NASDAQ:XPER) Q2 2017 Earnings Conference Call - Final Transcript
Jul 27, 2017 • 05:00 pm ET
[Operator instructions] We'll take our first question from Krish Sankar with Bank of America Merrill Lynch. Please go ahead.
Thanks for taking my question. I had a few of them. Jon, first one of the Samsung, thanks for giving some color, is there a timeframe or what is the trigger point for you guys to actually start a litigation with Samsung?
Is it more about the pricing or is there a timeframe where once Samsung stalls it beyond a certain timeframe, you're going to start a litigation? Is there any kind of boundary conditions there?
Well, I think in general, the way to think about it is that there's a bunch of elements to the conversation and strategic conversations about, and strategic thinking on our part as to when you go about doing that.
I think the best, the best thing I can tell you is that the reason we haven't thus far is because we think there's been the benefit of some ITC-related data that discussions are fundamentally informed by data.
You can agree to disagree, but as you get more, as you get more data, some of those disagreements stand harder to truly stand behind, and I think we're in a position now with the ITC decision providing some fresh data, the opinion from Judge Lord will soon be public and so on and so forth that based on some of that additional data as well as some ongoing conversation we've chosen not yet to file.
Does that mean we have unlimited patience, the answer is absolutely not and suffice it to say that if we need to file, we will without hesitation and we have done the work necessary to -- we believe to put ourselves in a position to do that.
So, I realize it's still opaque for you a little bit, but I think as we work to get resolution, which is what we all want, we don't -- in a perfect world, you would not litigate. We would find ourselves hopefully at the table getting it done rather than having to go down that path, but I don't think you'll be waiting forever for either to occur.
Got it. Thanks for the color. Also, just following up on the Samsung, looks like the real issue here is the DRAM licensing, if you do choose, given the fact that the legacy DRAM license is part of -- Samsung is a customer, Samsung is a customer for FotoNation, for DTS.
So, if you do choose to litigate, is it just going to be on the DRAM licensing side and if so, does it impact the other aspects of Xperi's business with Samsung?
We have a number of license agreements with a number of different Samsung-related entities. So clearly, I think the thrust of the nature of our engagement if we litigate is really going to be driven primarily around semiconductor-related matters.
And I would also say that we also have other assets that may find their way