SAN JOSE, Calif. - Xperi (NASDAQ:ADEA) Inc. (NYSE: XPER), a technology company specializing in entertainment experiences, has urged shareholders to support its current Board of Directors at the upcoming Annual Meeting scheduled for Friday, May 24, 2024. The company has emphasized its commitment to strategic focus and operational discipline, which it believes has positioned it for sustainable, profitable growth.
The company's recent letter to shareholders comes as Xperi faces a challenge from a shareholder seeking to replace half of the independent directors with candidates including a former CEO of one of Xperi's predecessor companies. Xperi's management contends that such a change could disrupt the company's momentum and lead to a loss of critical board expertise.
Xperi has received backing from leading proxy advisory firms, Institutional Shareholder Services (ISS) and Glass, Lewis & Co., both of which have recommended that shareholders vote for all of the company's nominees on the BLUE proxy card. These endorsements reflect confidence in the current board's strategy and performance.
The company has highlighted several key actions taken since its spinoff in October 2022, including the divestiture of its AutoSense business in January 2024 and the exploration of strategic alternatives for its AI business, Perceive, announced in February 2024. These moves are part of Xperi's broader strategy to focus on its core entertainment technology businesses.
In affirming its mid-range targets provided during the September 2022 Investor Day, Xperi anticipates a revenue compound annual growth rate (CAGR) from 2022 of 12-15% and adjusted EBITDA margins of 25% to 30%. The company has expressed satisfaction with its margin expansion progress in 2024 and expects further improvement through revenue growth and ongoing cost management.
Xperi's executive compensation program has also been reviewed, with approximately 89% of the CEO's target compensation tied to company performance and stock price, reflecting alignment with shareholder interests. The Board plans to continue reviewing compensation practices to ensure they remain closely aligned with shareholder interests.
The company's communication to shareholders is based on the premise that the current leadership is well-equipped to drive long-term value creation for Xperi. This press release statement serves as a call to action for shareholders to support the incumbent directors at the upcoming Annual Meeting.
InvestingPro Insights
As Xperi Inc. (NYSE: XPER) prepares for its Annual Meeting, the company's financial health and strategic positioning are of paramount interest to shareholders. According to InvestingPro data, Xperi boasts a robust gross profit margin of 76.51% for the last twelve months as of Q1 2024, indicating a strong ability to control costs relative to revenue. This aligns with the company's emphasis on operational discipline and margin expansion progress mentioned in its communication to shareholders.
While the company has been operating at a loss with a negative P/E ratio of -3.62, analysts on InvestingPro predict that Xperi will turn profitable this year. This forward-looking optimism may reassure investors about the company's trajectory towards sustainable growth. Moreover, Xperi's liquidity position appears reassuring as its liquid assets exceed short-term obligations, suggesting financial resilience in meeting its immediate financial commitments.
Notably, Xperi does not pay a dividend to shareholders, which could be a strategic move to reinvest earnings into the company's core entertainment technology businesses and strategic initiatives. For investors seeking a deeper analysis and more comprehensive insights, there are additional InvestingPro Tips available, including an evaluation of the company's moderate level of debt and potential fair value assessments. To access these insights and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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