10/28/2024 | Press release | Distributed by Public on 10/28/2024 14:11
Quarterly Financial Review - GAAP |
Three Months Ended
September 30,
|
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(In millions, except for percentages and per share amounts) | 2024 | 2023 | ||
Revenue | ||||
Product revenue | $ | 66.4 | $ | 52.2 |
Royalties | 64.1 | 28.9 | ||
Contract and other revenue | 15.0 | 24.2 | ||
Total revenue | 145.5 | 105.3 | ||
Cost of product revenue | 24.6 | 19.4 | ||
Cost of contract and other revenue | 0.8 | 1.3 | ||
Amortization of acquired intangible assets (included in total cost of revenue) | 2.8 | 3.3 | ||
Total operating expenses (benefits) (1)
|
62.7 | (23.6) | ||
Operating income | $ | 54.6 | $ | 104.9 |
Operating margin | 38 | % | 100 | % |
Net income | $ | 48.7 | $ | 103.2 |
Diluted net income per share | $ | 0.45 | $ | 0.93 |
Net cash provided by operating activities | $ | 62.1 | $ | 51.6 |
Quarterly Financial Review - Supplemental Information(1)
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Three Months Ended
September 30,
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(In millions) | 2024 | 2023 | ||
Licensing billings (operational metric) (2)
|
$ | 65.4 | $ | 57.9 |
Product revenue (GAAP) | $ | 66.4 | $ | 52.2 |
Contract and other revenue (GAAP) | $ | 15.0 | $ | 24.2 |
Non-GAAP cost of product revenue | $ | 24.4 | $ | 19.2 |
Cost of contract and other revenue (GAAP) | $ | 0.8 | $ | 1.3 |
Non-GAAP total operating expenses | $ | 55.3 | $ | 52.4 |
Non-GAAP interest and other income (expense), net | $ | 4.2 | $ | 1.9 |
Diluted share count (GAAP) | 108 | 111 |
(In millions) | GAAP |
Non-GAAP (1)
|
Licensing billings (operational metric) (2)
|
$57 - $63 | $57 - $63 |
Product revenue (GAAP) | $72 - $78 | $72 - $78 |
Contract and other revenue (GAAP) | $22 - $28 | $22 - $28 |
Total operating costs and expenses | $101 - $97 | $86 - $82 |
Interest and other income (expense), net | $4 | $4 |
Diluted share count | 108 | 108 |
(In thousands)
|
September 30, 2024 |
December 31, 2023 |
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ASSETS |
|
|
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Current assets:
|
|
|
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Cash and cash equivalents
|
$ | 113,980 | $ | 94,767 |
Marketable securities
|
318,717 | 331,077 | ||
Accounts receivable
|
87,198 | 82,925 | ||
Unbilled receivables
|
30,778 | 50,872 | ||
Inventories
|
48,905 | 36,154 | ||
Prepaids and other current assets
|
12,435 | 34,850 | ||
Total current assets
|
612,013 | 630,645 | ||
Intangible assets, net
|
19,389 | 28,769 | ||
Goodwill
|
286,812 | 286,812 | ||
Property, plant and equipment, net
|
73,374 | 67,808 | ||
Operating lease right-of-use assets | 21,039 | 21,497 | ||
Deferred tax assets
|
129,348 | 127,892 | ||
Income taxes receivable | 104,270 | 88,768 | ||
Other assets
|
5,325 | 6,036 | ||
Total assets
|
$ | 1,251,570 | $ | 1,258,227 |
LIABILITIES & STOCKHOLDERS' EQUITY | ||||
Current liabilities:
|
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Accounts payable
|
$ | 20,365 | $ | 18,074 |
Accrued salaries and benefits
|
13,966 | 17,504 | ||
Deferred revenue
|
18,404 | 17,393 | ||
Income taxes payable
|
1,114 | 5,099 | ||
Operating lease liabilities
|
5,397 | 4,453 | ||
Other current liabilities
|
14,881 | 26,598 | ||
Total current liabilities
|
74,127 | 89,121 | ||
Long-term liabilities:
|
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Long-term operating lease liabilities
|
24,794 | 26,255 | ||
Long-term income taxes payable
|
101,350 | 78,947 | ||
Other long-term liabilities
|
12,314 | 25,803 | ||
Total long-term liabilities
|
138,458 | 131,005 | ||
Total stockholders' equity
|
1,038,985 | 1,038,101 | ||
Total liabilities and stockholders' equity
|
$ | 1,251,570 | $ | 1,258,227 |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
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(In thousands, except per share amounts)
|
2024 | 2023 | 2024 | 2023 | ||||
Revenue:
|
||||||||
Product revenue
|
$ | 66,394 | $ | 52,181 | $ | 173,446 | $ | 170,934 |
Royalties
|
64,105 | 28,857 | 167,961 | 97,698 | ||||
Contract and other revenue
|
15,014 | 24,260 | 54,115 | 70,260 | ||||
Total revenue
|
145,513 | 105,298 | 395,522 | 338,892 | ||||
Cost of revenue:
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Cost of product revenue
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24,554 | 19,388 | 67,381 | 64,554 | ||||
Cost of contract and other revenue
|
752 | 1,295 | 2,307 | 4,280 | ||||
Amortization of acquired intangible assets
|
2,796 | 3,349 | 8,904 | 10,472 | ||||
Total cost of revenue
|
28,102 | 24,032 | 78,592 | 79,306 | ||||
Gross profit
|
117,411 | 81,266 | 316,930 | 259,586 | ||||
Operating expenses (benefits):
|
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Research and development
|
41,299 | 37,368 | 119,183 | 120,842 | ||||
Sales, general and administrative
|
25,867 | 25,333 | 76,096 | 82,484 | ||||
Amortization of acquired intangible assets
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94 | 258 | 476 | 1,022 | ||||
Restructuring and other charges (recoveries)
|
- | (100) | - | 9,394 | ||||
Gain on divestiture | - | (90,843) | - | (90,843) | ||||
Impairment of assets | - | 10,045 | 1,071 | 10,045 | ||||
Change in fair value of earn-out liability
|
(4,544) | (5,666) | (5,044) | 8,134 | ||||
Total operating expenses (benefits)
|
62,716 | (23,605) | 191,782 | 141,078 | ||||
Operating income
|
54,695 | 104,871 | 125,148 | 118,508 | ||||
Interest income and other income (expense), net
|
4,667 | 2,715 | 13,654 | 7,112 | ||||
Loss on fair value adjustment of derivatives, net | - | - | - | (240) | ||||
Interest expense
|
(327) | (356) | (1,064) | (1,113) | ||||
Interest and other income (expense), net
|
4,340 | 2,359 | 12,590 | 5,759 | ||||
Income before income taxes
|
59,035 | 107,230 | 137,738 | 124,267 | ||||
Provision for (benefit from) income taxes
|
10,370 | 4,032 | 20,119 | (151,092) | ||||
Net income
|
$ | 48,665 | $ | 103,198 | $ | 117,619 | $ | 275,359 |
Net income per share:
|
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Basic
|
$ | 0.45 | $ | 0.95 | $ | 1.09 | $ | 2.54 |
Diluted
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$ | 0.45 | $ | 0.93 | $ | 1.08 | $ | 2.48 |
Weighted average shares used in per share calculation
|
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Basic
|
107,235 | 108,317 | 107,681 | 108,412 | ||||
Diluted
|
108,474 | 110,775 | 109,318 | 111,179 |
Three Months Ended
September 30,
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(In thousands) | 2024 | 2023 | ||
Cost of product revenue | $ | 24,554 | $ | 19,388 |
Adjustment: | ||||
Stock-based compensation expense | (117) | (149) | ||
Non-GAAP cost of product revenue | $ | 24,437 | $ | 19,239 |
Total operating expenses (benefits) | $ | 62,716 | $ | (23,605) |
Adjustments: | ||||
Stock-based compensation expense | (11,881) | (9,889) | ||
Acquisition-related costs and retention bonus expense | (17) | (37) | ||
Amortization of acquired intangible assets | (94) | (258) | ||
Restructuring and other recoveries | - | 100 | ||
Expense on abandoned operating leases | - | (40) | ||
Facility restoration costs | - | 3 | ||
Severance costs | - | (373) | ||
Gain on divestiture | - | 90,843 | ||
Impairment of assets | - | (10,045) | ||
Change in fair value of earn-out liability | 4,544 | 5,666 | ||
Non-GAAP total operating expenses | $ | 55,268 | $ | 52,365 |
Interest and other income (expense), net | $ | 4,340 | $ | 2,359 |
Adjustment: | ||||
Interest income related to significant financing component from fixed-fee patent and technology licensing arrangements | (163) | (426) | ||
Non-GAAP interest and other income (expense), net | $ | 4,177 | $ | 1,933 |
2024 Fourth Quarter Outlook
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Three Months Ended December 31, 2024 |
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(In millions) | Low | High | ||
Forward-looking operating costs and expenses | $ | 101.0 | $ | 97.0 |
Adjustments: | ||||
Stock-based compensation expense | (13.0) | (13.0) | ||
Amortization of acquired intangible assets | (2.0) | (2.0) | ||
Forward-looking Non-GAAP operating costs and expenses | $ | 86.0 | $ | 82.0 |