Xperi Corporation (NASDAQ: XPER) reported Q2 EPS of $0.57, $0.13 better than the analyst estimate of $0.44. Revenue for the quarter came in at $137.63 million versus the consensus estimate of $126.97 million.

“This has been a very productive time for Xperi, as we closed our transformational merger with TiVo in June and have made significant progress on the integration and on our strategic and financial goals,” said Jon Kirchner, chief executive officer of Xperi. “We delivered solid results across our combined businesses, and we continue to see validation of our IP through key agreements, renewals, and favorable litigation decisions. We are beginning to realize the benefits of the added scale and diversification to our IP and Product platforms and believe Xperi is well positioned as a key provider of technology to enable more compelling experiences in the markets we serve.”

Second Quarter 2020 Financial Highlights:

• Completed the merger of Xperi Corporation and TiVo Corporation on June 1, 2020, to form Xperi Holding Corporation.
• Billings for legacy Xperi of $93.4 million, above the high end of expectations.
• Reported GAAP quarterly revenue, including only one month of TiVo operations post close, of $137.6 million.
• Fully combined Adjusted Revenue, on a non-GAAP basis, of $234.8 million for the quarter (see definition of Adjusted Revenue below).
• Repurchased $15 million of common stock under a new $150 million stock repurchase program.
• Finished the quarter with $200 million in cash and investments.

Business Outlook

Going forward, the Company will provide its top-line outlook using revenue. The Company will not report billings, which had been legacy Xperi’s practice prior to the merger. Xperi’s semiconductor IP Licensing business is forecasted to have 2020 billings that are $70 million higher than revenue due to the application of ASC 606, of which $65 million occurs in the second half. This difference is due to fixed-fee semiconductor IP agreements where revenue was recognized in prior periods but continues to be billed in 2020. There is also an annual impact of $7 million reduction to revenue from purchase price accounting related to the merger, of which $5 million occurs in the second half.

Notably, as a result of two significant semiconductor IP agreements executed in the first half of the year, and the related revenue being recognized from these customers during that period, the full year performance of the combined companies is weighted to the first half.

For earnings history and earnings-related data on Xperi Corporation (XPER) click here.