Xperi Corporation (NASDAQ:XPER) Q3 2017 Earnings Conference Call Transcript
Nov 02, 2017 • 05:00 pm ET
Good day, ladies and gentlemen and thank you for standing by and welcome to the Xperi Third Quarter Fiscal Year 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. I would now like to turn the call over to Geri Weinfeld, Senior Director of Investor Relations for Xperi. Geri, please go ahead.
Good afternoon, everyone. Thanks for joining us as we report our third quarter of 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. (Forward-Looking Cautionary Statements) 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, 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?
Thanks, Geri, and thanks to everyone for joining us. I want to open by acknowledging that we are currently experiencing and working through some short-term challenges in our business. Several customers, market specific and timing factors are impacting our results. Despite the near-term challenges, we believe the fundamentals and industry trends supporting our business and opportunities set remains strong over the long-term. The challenge of timing and the resolution of our outstanding licensing matters is still uncertain though we believe that a strong catalyst exists on our Broadcom discussions before year-end. The other challenges stem from specific customer issues, market competition on the low-end of the mobile market, and time shifts and expected execution of certain new licenses. We believe all of these matters can ultimately be resolved and that the fundamentals of our business remains sound. This summer shortly after I became CEO I began a comprehensive process of reviewing each market and technology segment that our company addresses. This process which is essential to advancing our long-term strategy has already led to a narrowing of focus on fewer priorities, a deeper assessment of our competitive dynamics and other changes.
One of the key aspects of that review has been the recognition that in some of our markets, especially imaging, we are experiencing increasing internal customer competition on low-end products. Our future direction is to innovate through advanced integrated hardware, software, and embedded solutions which is far harder to replicate by competitors. An integrated Xperi solution will deliver a far more magical and intelligent experience than is offered today. We believe that a strategy based on building advanced