Xperi Holding Corporation (NASDAQ: XPER), whose brands include Adeia, DTS, HD Radio, IMAX Enhanced, TiVo), and Perceive, has announced a USD$10 million increase in both its annual revenue and operating cash flow guidance for 2022. The increase is primarily due to a recently resolved contract dispute with a customer.
The updated guidance for revenue and operating cash flow for full year 2022 is as follows:
- The Prior Outlook for Revenue was $910M to $950M while the Updated Outlook is $920M to $960M;
- The Prior Outlook for Operating Cash Flow was $200M to $230M while the Updated Outlook is $210M to $240M.
The Company’s FotoNation subsidiary filed a request for arbitration in January 2020 against a large mobile imaging customer for breach of contract. In settling the arbitration, Xperi entered into an agreement that resolves all outstanding disputes, provides an upfront payment to Xperi for past licensing fees and requires additional license fees and payments to Xperi over the next few years.
“We are very pleased to have reached a resolution of this long-standing dispute,” said Jon Kirchner, chief executive officer of Xperi. “This resolution, along with a recent long-term renewal of a significant IP licensing customer, provides the foundation to increase our revenue and operating cash guidance outlook. We continue to execute on our long-term strategy, despite a challenging market backdrop.”