Adeia Inc. (NASDAQ:ADEA) Q1 2024 Earnings Call Transcript

Paul Davis: Thanks for that question. Certainly, we’re very pleased to get the Astound license agreement done. We’ve had a few of those. There’s not there’s not many. As you recall, at the separation and this is consistent. Really, our business models and who we approach were really quite different. We are usually typically are focused on the larger service providers as our licensees. We have obviously some smaller ones as well. But there’s not usually a lot of overlap. So fairly unique situation. And we don’t anticipate really there being, you know, many more of those, at this point.

Hamed Khorsand: Okay. And then my other question is just could you clarify your commentary? You’re talking about how you’re making, great headway with new licensees. I think you listed a few of them. But then you’re also saying that, you know, Q2 is looking like it might be like Q1 because there is push outs. So what is that progress that you’re talking about? Because it doesn’t sound like it’s gonna be in the revenue side.

Paul Davis: Yeah. So, Hamed, as you know, our license agreement discussions can be quite lengthy. And often they are, you know, can be, 18, 24-month type engagements. And so, we’re pleased with kind of how those are progressing, as I noted in my commentary. But the exact timing of when they will land within a quarter is the hardest thing that we have to do to predict. And that’s why we provide annual guidance. That’s why we focus on that. And we have high confidence in the year. Exactly whether it falls, you know, kind of, June 30th versus July 1 or some other date, that that varies from quarter to quarter is where what we’re really talking about. But the confidence in the year remains. We feel very good about it, given where we’re at.

But it’s — that’s always our focus is getting the right deal done for the right economics. And, please — again very pleased with the progress, but predicting on exactly when it falls within a quarter is something that we try to try to avoid doing, for that very reason.

Operator: That concludes our question-and-answer session. I will now turn the call back over to Paul Davis for closing remarks.

Paul Davis: Thank you, operator. Our first quarter results were aligned with our expectations, and we remain on track to meet our goals for the year. I want to thank our dedicated employees, partners, and customers for the strong start to the year and the progress we have made on our strategic objectives. Next week, we’ll be participating at the Needham Technology, Media and Consumer Conference in New York. We look forward to seeing you at this conference and other investor events in the coming weeks. Thank you for joining us today.

Operator: This concludes today’s conference call. Thank you for your participation. [Operator Closing Remarks].