Finance

Adeia Announces Fourth Quarter And Full Year 2023 Financial Results

Adeia Inc.

Adeia Inc.

Signed 8 deals in the fourth quarter and 32 in 2023 across both media and semiconductor

Paid down $29 million of debt in fourth quarter and $148 million in 2023

SAN JOSE, Calif., Feb. 20, 2024 (GLOBE NEWSWIRE) — Adeia Inc. (Nasdaq: ADEA) (the “Company” or “Adeia”) today announced financial results for the fourth quarter and full year ended December 31, 2023.

“We made excellent progress toward our long-term goals in 2023,” said Paul E. Davis, chief executive officer of Adeia. “We closed 32 deals across multiple verticals in our media and semiconductor businesses, including with new customers in OTT, Pay-TV, social media and semiconductors. We exceeded our target patent portfolio growth rate of 10% and our new original patent filings hit a record in 2023, positioning us for future revenue growth. Our deal pipeline continues to expand and is extremely robust. With our strong cash flow generation, we paid down $148 million of our debt in 2023 and expect to further significantly deleverage the company in 2024 through continued accelerated debt payments. In the coming year, we will focus our attention on continuing our strong renewal rate with existing customers and signing new customers in OTT, semiconductors, and adjacent verticals while maintaining our highly profitable and cash generative business model. We will make strategic investments in R&D to capitalize on emerging trends such as generative AI and the challenges of Moore’s Law facing the semiconductor industry. We will also continue to expand our patent portfolios and further develop our infrastructure to support increased business development and sales activities in our target markets. These investments are critical to our revenue growth opportunities in OTT, semiconductors, and adjacent verticals.”

Fourth Quarter Financial Highlights

  • Revenue was $86.9 million as compared to $101.4 million in the third quarter of 2023

  • GAAP diluted earnings per share (EPS) was $0.11 and non-GAAP diluted EPS was $0.27

  • GAAP net income was $12.7 million and adjusted EBITDA was $54.1 million

  • Cash flows from operations was $39.4 million

  • Paid down $29.1 million on our term loan

Full Year 2023 Financial Highlights

  • Revenue was $388.8 million as compared to $438.9 million in 2022

  • GAAP diluted EPS was $0.60 and non-GAAP diluted EPS was $1.39

  • GAAP net income was $67.4 million and adjusted EBITDA was $262.3 million

  • Cash flows from operations was $152.8 million

  • Paid down $148.0 million on our term loan

Business Highlights

  • Signed a new long-term license agreement with a leading international social media company for access to our media portfolio

  • Signed a new multi-year license agreement with Breezeline, a large Pay-TV operator in the United States, for access to our media portfolio

  • Signed renewals with four Pay-TV operators, including Minerva, a hosted Pay-TV service, for access to our media portfolio

  • Signed two renewals with consumer electronics companies, including Funai, a global manufacturer of connected TVs, for access to our media portfolio

  • Strengthened our executive team with the appointment of Joe Guiliano as our Chief Intellectual Property Officer

Capital Allocation

During the quarter, the Company made $29.1 million in principal payments towards its term loan B, bringing the outstanding balance to $601.3 million as of December 31, 2023.

On December 18, 2023, the Company distributed $5.4 million to stockholders of record on November 27, 2023, for a quarterly cash dividend of $0.05 per share of common stock.

The Board of Directors declared a dividend of $0.05 per share, payable on March 26, 2024, to stockholders of record on March 12, 2024.

Financial Outlook

The Company’s full year 2024 outlook is as follows:

Category
(in millions, except for tax rate)

 

2024
GAAP Outlook

 

2024
Non-GAAP Outlook

Revenue

 

$380.0 − 420.0

 

$380.0 − 420.0

Operating expenses(1)

 

$254.0 − 268.0

 

$150.0 − 160.0

Interest expense

 

$54.0 − 57.0

 

$54.0 − 57.0

Other income

 

$5.0 − 6.0

 

$5.0 − 6.0

Tax rate

 

25% − 30%

 

23%

Net income(2)

 

$57.8 − 70.7

 

$139.4 − 160.9

Adjusted EBITDA(2)

 

N/A

 

$232.5 − 262.5

Diluted shares outstanding

 

114.0 − 115.0

 

114.0 − 115.0

 

 

 

 

 

(1) See tables for reconciliation of GAAP to non-GAAP operating expenses

(2) See tables for reconciliation of GAAP net income to (i) non-GAAP net income and (ii) adjusted earnings before interest expense, income taxes, depreciation and amortization (adjusted EBITDA)

Conference Call Information

The Company will hold its fourth quarter 2023 earnings conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on Tuesday, February 20, 2024. To access the call in the U.S., please dial +1 (888) 660-6411, and for international callers, dial +1 (929) 203-0849. All participants should dial in 15 minutes prior to the start of the conference call. The Company also suggests utilizing the webcast link to access the live call and the replay at Q4 2023 Earnings Call Webcast.

Safe Harbor Statement

This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information available to the Company as of the date hereof, as well as the Company’s current expectations, assumptions, estimates and projections that involve risks and uncertainties. In this context, forward-looking statements often address expected future business, financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “target,” similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond the Company’s control, and are not guarantees of future results. Forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: the Company’s ability to implement its business strategy; the Company’s ability to enter into new and renewal license agreements with customers on favorable terms; the Company’s ability to retain and hire key personnel; uncertainty as to the long-term value of the Company’s common stock; legislative, regulatory and economic developments affecting the Company’s business; general economic and market developments and conditions; the Company’s ability to grow and expand its patent portfolios; changes in technology and development of new technology in the industries in which in which the Company operates; the evolving legal, regulatory and tax regimes under which the Company operates; unforeseen liabilities and expenses; risks associated with the Company’s indebtedness; the Company’s ability to achieve the intended benefits of, and its ability to recognize the anticipated tax treatment of, the spin-off of its product business; unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, natural disasters and future outbreaks or pandemics, each of which may have an adverse impact on the Company’s business, results of operations, and financial condition. These risks, as well as other risks associated with the Company’s business, are more fully discussed in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. While the list of factors presented here is, and the list of factors presented in the Company’s filings with the SEC are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.

Causes of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations, liquidity or trading price of common stock. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

About Adeia Inc.

Adeia is a leading R&D and intellectual property (IP) licensing company that accelerates the adoption of innovative technologies in the media and semiconductor industries. Adeia’s fundamental innovations underpin technology solutions that are shaping and elevating the future of digital entertainment and electronics. Adeia’s IP portfolios power the connected devices that touch the lives of millions of people around the world every day as they live, work and play. For more, please visit www.adeia.com.

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company’s earnings release contains non-GAAP financial measures adjusted, where applicable, for either one-time or ongoing non-cash acquired intangibles amortization charges, costs related to actual or planned business combinations including transaction fees, integration costs, severance, facility closures, and retention bonuses, separation costs, all forms of stock-based compensation, loss on debt extinguishment, expensed debt refinancing costs, impairment of intangible assets, impact of certain foreign currency adjustments, discontinued operations and related tax effects. In addition, adjusted EBITDA adjusts for recurring charges of interest expense, income taxes, depreciation, and amortization. Management believes that the non-GAAP measures used in this release provide investors with important perspectives on the Company’s ongoing business and financial performance and are helpful to provide investors with an understanding of our core operating results reflecting our normal business operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Our use of non-GAAP financial measures has certain limitations in that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as adjusted EBITDA, non-GAAP operating expenses, non-GAAP net income and non-GAAP diluted earnings per share (EPS) do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached hereto. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. All financial data is presented on a GAAP basis except where the Company indicates its presentation is on a non-GAAP basis.

Set forth below are reconciliations of the Company’s reported and forecasted GAAP to non-GAAP financial metrics.

Investor Contact:

Chris Chaney
Vice President, Investor Relations
IR@adeia.com

– Tables Follow –

SOURCE: ADEIA INC.
ADEA

ADEIA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,
2023

 

 

December 31,
2022

 

 

December 31,
2023

 

 

December 31,
2022

 

Revenue

 

$

86,867

 

 

$

103,290

 

 

$

388,788

 

 

$

438,933

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

14,369

 

 

 

12,041

 

 

 

54,264

 

 

 

44,579

 

Selling, general and administrative

 

 

24,049

 

 

 

32,546

 

 

 

95,226

 

 

 

135,630

 

Amortization expense

 

 

23,010

 

 

 

23,950

 

 

 

93,735

 

 

 

97,077

 

Litigation expense

 

 

2,172

 

 

 

1,510

 

 

 

9,333

 

 

 

8,587

 

Total operating expenses

 

 

63,600

 

 

 

70,047

 

 

 

252,558

 

 

 

285,873

 

Operating income from continuing operations

 

 

23,267

 

 

 

33,243

 

 

 

136,230

 

 

 

153,060

 

Interest expense

 

 

(15,437

)

 

 

(15,023

)

 

 

(62,574

)

 

 

(45,335

)

Other income and expense, net

 

 

1,597

 

 

 

420

 

 

 

6,320

 

 

 

2,047

 

Income from continuing operations before income taxes

 

 

9,427

 

 

 

18,640

 

 

 

79,976

 

 

 

109,772

 

Provision for (benefit from) income taxes

 

 

(3,273

)

 

 

(55,090

)

 

 

12,604

 

 

 

(28,620

)

Net income from continuing operations

 

 

12,700

 

 

 

73,730

 

 

 

67,372

 

 

 

138,392

 

Net loss from discontinued operations, net of tax

 

 

 

 

 

 

 

 

 

 

 

(436,978

)

Net income (loss)

 

 

12,700

 

 

 

73,730

 

 

 

67,372

 

 

 

(298,586

)

Less: Net loss attributable to non-controlling interest in discontinued operations

 

 

 

 

 

 

 

 

 

 

 

(2,706

)

Net income (loss) attributable to the Company

 

$

12,700

 

 

$

73,730

 

 

$

67,372

 

 

$

(295,880

)

Income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.12

 

 

$

0.70

 

 

$

0.63

 

 

$

1.33

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

(4.16

)

Net income (loss)

 

$

0.12

 

 

$

0.70

 

 

$

0.63

 

 

$

(2.83

)

Diluted

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.11

 

 

$

0.65

 

 

$

0.60

 

 

$

1.29

 

Discontinued operations

 

 

 

 

 

 

 

 

 

 

 

(4.04

)

Net income (loss)

 

$

0.11

 

 

$

0.65

 

 

$

0.60

 

 

$

(2.75

)

Weighted average number of shares used in per share calculations-basic

 

 

107,242

 

 

 

105,135

 

 

 

106,554

 

 

 

104,336

 

Weighted average number of shares used in per share calculations-diluted

 

 

112,833

 

 

 

113,392

 

 

 

112,849

 

 

 

107,580

 

ADEIA INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

 

 

December 31,

 

 

December 31,

 

 

 

2023

 

 

2022

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

54,560

 

 

$

114,555

 

Marketable securities

 

 

29,012

 

 

 

Accounts receivable, net

 

 

39,651

 

 

 

58,480

 

Unbilled contracts receivable

 

 

74,919

 

 

 

73,754

 

Other current assets

 

 

7,700

 

 

 

11,924

 

Total current assets

 

 

205,842

 

 

 

258,713

 

Long-term unbilled contracts receivable

 

 

73,843

 

 

 

40,705

 

Property and equipment, net

 

 

6,971

 

 

 

4,550

 

Operating lease right-of-use assets

 

 

9,484

 

 

 

5,993

 

Intangible assets, net

 

 

347,172

 

 

 

432,476

 

Goodwill

 

 

313,660

 

 

 

313,660

 

Long-term income tax receivable

 

 

120,338

 

 

 

113,679

 

Other long-term assets

 

 

28,246

 

 

 

40,750

 

Total assets

 

$

1,105,556

 

 

$

1,210,526

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

9,623

 

 

$

8,546

 

Accrued liabilities

 

 

19,138

 

 

 

31,277

 

Current portion of long-term debt, net

 

 

66,145

 

 

 

109,813

 

Deferred revenue

 

 

7,132

 

 

 

17,076

 

Total current liabilities

 

 

102,038

 

 

 

166,712

 

Deferred revenue, less current portion

 

 

17,672

 

 

 

10,683

 

Long-term debt, net

 

 

519,550

 

 

 

619,580

 

Noncurrent operating lease liabilities

 

 

9,730

 

 

 

4,794

 

Long-term income tax payable

 

 

81,834

 

 

 

87,302

 

Other long-term liabilities

 

 

18,110

 

 

 

20,043

 

Total liabilities

 

 

748,934

 

 

 

909,114

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

 

121

 

 

 

117

 

Additional paid-in capital

 

 

635,331

 

 

 

636,266

 

Treasury stock at cost

 

 

(222,497

)

 

 

(211,223

)

Accumulated other comprehensive loss

 

 

(8

)

 

 

(51

)

Accumulated deficit

 

 

(56,325

)

 

 

(123,697

)

Total stockholders’ equity

 

 

356,622

 

 

 

301,412

 

Total liabilities and equity

 

$

1,105,556

 

 

$

1,210,526

 

ADEIA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

Twelve Months Ended

 

 

 

December 31,
2023

 

 

December 31,
2022

 

Cash flows from operating activities:

 

 

 

 

 

 

Net income (loss)

 

$

67,372

 

 

$

(298,586

)

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

Depreciation of property and equipment

 

 

1,539

 

 

 

17,144

 

Amortization of intangible assets

 

 

93,735

 

 

 

143,243

 

Goodwill impairment

 

 

 

 

 

354,000

 

Stock-based compensation expense

 

 

18,057

 

 

 

52,626

 

Deferred income tax

 

 

11,392

 

 

 

(40,301

)

Amortization of debt issuance costs

 

 

4,302

 

 

 

4,405

 

Other

 

 

(252

)

 

 

744

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

18,268

 

 

 

24,892

 

Unbilled contracts receivable

 

 

(34,303

)

 

 

(86,673

)

Other assets

 

 

(4,502

)

 

 

(3,243

)

Accounts payable

 

 

(894

)

 

 

18,601

 

Accrued and other liabilities

 

 

(14,604

)

 

 

(3,614

)

Deferred revenue

 

 

(7,355

)

 

 

(215

)

Net cash from operating activities

 

 

152,755

 

 

 

183,023

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(3,812

)

 

 

(12,576

)

Proceeds from sale of property and equipment

 

 

 

 

 

86

 

Purchases of intangible assets

 

 

(2,531

)

 

 

(290

)

Cash paid for acquisitions, net of cash assumed

 

 

 

 

 

(50,473

)

Purchases of short-term investments

 

 

(42,845

)

 

 

(4,490

)

Proceeds from sales of investments

 

 

 

 

 

28,254

 

Proceeds from maturities of investments

 

 

14,700

 

 

 

36,576

 

Net cash from investing activities

 

 

(34,488

)

 

 

(2,913

)

Cash flows from financing activities:

 

 

 

 

 

 

Repayment of debt

 

 

(148,000

)

 

 

(40,500

)

Dividends paid

 

 

(21,339

)

 

 

(20,888

)

Distribution of Xperi Inc.

 

 

 

 

 

(182,928

)

Proceeds from employee stock purchase program and exercise of stock options

 

 

2,351

 

 

 

14,260

 

Repurchases of common stock for tax withholdings on equity awards

 

 

(11,274

)

 

 

(15,941

)

Repurchases of common stock

 

 

 

 

 

(17,260

)

Net cash from financing activities

 

 

(178,262

)

 

 

(263,257

)

Effect of exchange rate changes on cash and cash equivalents

 

 

 

 

 

(3,419

)

Net increase (decrease) in cash and cash equivalents

 

 

(59,995

)

 

 

(86,566

)

Cash and cash equivalents at beginning of period

 

 

114,555

 

 

 

201,121

 

Cash and cash equivalents at end of period

 

$

54,560

 

 

$

114,555

 

ADEIA INC.

GAAP TO NON-GAAP RECONCILIATIONS

(in thousands, except per share amounts)

(unaudited)

 

Net income

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,
2023

 

 

December 31,
2023

 

GAAP net income

 

$

12,700

 

 

$

67,372

 

 

 

 

 

 

 

 

Adjustments to GAAP net income:

 

 

 

 

 

 

Stock-based compensation expense:

 

 

 

 

 

 

Research and development

 

 

814

 

 

 

2,911

 

Selling, general and administrative

 

 

4,173

 

 

 

15,146

 

Amortization expense

 

 

23,010

 

 

 

93,735

 

Separation and other related costs recorded in selling, general and administrative (1)

 

 

2,409

 

 

 

12,632

 

Severance and retention costs recorded in selling, general and administrative

 

 

 

 

 

78

 

Total operating expenses adjustments

 

 

30,406

 

 

 

124,502

 

Other income and expense, net

 

 

 

 

 

(302

)

Non-GAAP tax adjustment (2)

 

 

(12,435

)

 

 

(34,356

)

Non-GAAP net income

 

$

30,671

 

 

$

157,216

 

 

 

 

 

 

 

 

Diluted income per share

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,
2023

 

 

December 31,
2023

 

GAAP diluted income per share

 

$

0.11

 

 

$

0.60

 

 

 

 

 

 

 

 

Adjustments to GAAP diluted income per share:

 

 

 

 

 

 

Stock-based compensation expense:

 

 

 

 

 

 

Research and development

 

 

0.01

 

 

 

0.03

 

Selling, general and administrative

 

 

0.04

 

 

 

0.13

 

Amortization expense

 

 

0.20

 

 

 

0.83

 

Separation and other related costs recorded in selling, general and administrative (1)

 

 

0.02

 

 

 

0.11

 

Severance and retention costs recorded in selling, general and administrative

 

0.00

 

 

0.00

 

Total operating expenses adjustments

 

 

0.27

 

 

 

1.10

 

Other income and expense, net

 

0.00

 

 

0.00

 

Non-GAAP tax adjustment (2)

 

 

(0.11

)

 

 

(0.31

)

Non-GAAP diluted income per share

 

$

0.27

 

 

$

1.39

 

 

(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, that are accounted for in continuing operations including fees for financial advisory and other professional services, and expenses incurred on a transitional basis under a contract shared with Xperi Inc.

(2) The provision for income taxes is adjusted to reflect the net direct and indirect income tax effects of the various non-GAAP pretax adjustments

ADEIA INC.

GAAP NET INCOME TO

ADJUSTED EBITDA RECONCILIATION

(in thousands)

(unaudited)

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,
2023

 

 

December 31,
2023

 

GAAP net income

 

$

12,700

 

 

$

67,372

 

 

 

 

 

 

 

 

Adjustments to GAAP net income:

 

 

 

 

 

 

Stock-based compensation expense:

 

 

 

 

 

 

Research and development

 

 

814

 

 

 

2,911

 

Selling, general and administrative

 

 

4,173

 

 

 

15,146

 

Separation and other related costs recorded in selling, general and administrative (1)

 

 

2,409

 

 

 

12,632

 

Severance and retention costs recorded in selling, general and administrative

 

 

 

 

 

78

 

Amortization expense

 

 

23,010

 

 

 

93,735

 

Depreciation expense

 

 

388

 

 

 

1,539

 

Interest expense

 

 

15,437

 

 

 

62,574

 

Other income and expense, net

 

 

(1,597

)

 

 

(6,320

)

Provision for (benefit from) income taxes

 

 

(3,273

)

 

 

12,604

 

Adjusted EBITDA

 

$

54,061

 

 

$

262,271

 

 

(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, that are accounted for in continuing operations including expenses incurred on a transitional basis under a contract shared with Xperi Inc.

ADEIA INC.

RECONCILIATION FOR GUIDANCE

ON OPERATING EXPENSES

(in millions)

(unaudited)

 

 

Year Ended

 

 

December 31, 2024

 

 

Low

 

 

High

 

GAAP operating expenses

$

254.0

 

 

$

268.0

 

Amortization expense

 

72.0

 

 

 

72.0

 

Stock-based compensation expense

 

24.0

 

 

 

26.0

 

Separation and related costs (1)

 

8.0

 

 

 

10.0

 

Total of non-GAAP adjustments

 

104.0

 

 

 

108.0

 

Non-GAAP operating expenses

$

150.0

 

 

$

160.0

 

 

(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, that are accounted for in continuing operations including expenses incurred on a transitional basis under a contract shared with Xperi Inc.

ADEIA INC.

RECONCILIATION FOR GUIDANCE

ON NET INCOME

(in millions)

(unaudited)

 

 

Year Ended

 

 

December 31, 2024

 

 

Low

 

 

High

 

GAAP net income

$

57.8

 

 

$

70.7

 

Amortization expense

 

72.0

 

 

 

72.0

 

Stock-based compensation expense

 

24.0

 

 

 

26.0

 

Separation and related costs (1)

 

8.0

 

 

 

10.0

 

Total of non-GAAP operating expenses

 

104.0

 

 

 

108.0

 

Non-GAAP tax adjustment

 

(22.4

)

 

 

(17.8

)

Non-GAAP net income

$

139.4

 

 

$

160.9

 

 

(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, that are accounted for in continuing operations including expenses incurred on a transitional basis under a contract shared with Xperi Inc.

ADEIA INC.

RECONCILIATION FOR GUIDANCE ON

ADJUSTED EBITDA

(in millions)

(unaudited)

 

 

Year Ended

 

 

December 31, 2024

 

 

Low

 

 

High

 

GAAP net income

$

57.8

 

 

$

70.7

 

Stock-based compensation expense

 

24.0

 

 

 

26.0

 

Separation and related costs (1)

 

8.0

 

 

 

10.0

 

Amortization expense

 

72.0

 

 

 

72.0

 

Depreciation expense

 

2.5

 

 

 

2.5

 

Interest expense

 

54.0

 

 

 

57.0

 

Other income

 

(5.0

)

 

 

(6.0

)

Income tax expense

 

19.2

 

 

 

30.3

 

Total of non-GAAP adjustments

 

174.7

 

 

 

191.8

 

Adjusted EBITDA

$

232.5

 

 

$

262.5

 

 

(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, that are accounted for in continuing operations including expenses incurred on a transitional basis under a contract shared with Xperi Inc.


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