Xperi Inc's Business Segments

Our principal executive offices are located at 3025 Orchard Parkway, San Jose, California 95134 USA. Our telephone number is +1 (408) 321-6000. We maintain a corporate website at www.xperi.com. The reference to our website address does not constitute incorporation by reference of the information contained on this website. Xperi, the Xperi logo, Tessera, the Tessera logo, DTS, the DTS logo, FotoNation, the FotoNation logo, Invensas, the Invensas logo, DigitalAperture, FacePower, FotoSavvy, FotoMagic, BVA, ZiBond, DBI, DTS-HD, DTS Sound, DTS Studio Sound, DTS Headphone:X, DTS Play-Fi, DTS:X and HD Radio are trademarks or registered trademarks of Xperi Corporation or its affiliated companies in the U.S. and other countries. All other company, brand and product names may be trademarks or registered trademarks of their respective companies.

Xperi is a publicly-traded technology company with headquarters in Silicon Valley and operations around the world. Through its operating subsidiaries, Xperi creates, develops and licenses innovative audio, imaging, semiconductor packaging and interconnect technologies. We have approximately 700 employees and over 25 years of operating experience.

We completed the acquisition of DTS, Inc. ("DTS"), a publicly-traded developer of sound-based technologies, in December 2016. At the time of the acquisition, Tessera Technologies, Inc. and DTS were combined under the newly-formed Tessera Holding Corporation. During the first quarter of 2017, we introduced our new corporate name, Xperi Corporation, launched a new corporate logo, and began trading under a new ticker symbol XPER.

Our combined portfolio of products and technologies uniquely positions us to deliver innovative audio and imaging products
and next-generation 3D semiconductor interconnect solutions for the home, automotive and mobile markets. Our products and technologies also enable new products in emerging markets such as Internet of Things (IoT) and Augmented Reality / Virtual Reality (AR/VR). Our team of more than 400 world-class engineers is focused on creating core technologies that power intelligent, immersive, and personalized experiences.

We license our innovative products, technologies and inventions to global electronics companies which, in turn, integrate the technologies into their own consumer electronics and semiconductor products. Our technologies and inventions are widely adopted and used every day by millions of people. Our audio technologies have shipped in billions of devices for the home, mobile and automotive markets. Our imaging technologies are embedded in more than 25% of current smartphones. Our semiconductor packaging and interconnect technologies have been licensed to more than 100 customers and have shipped in over 100 billion semiconductor chips.

As a result of the DTS acquisition, we began reporting our business in two operating segments. The Product Licensing segment is comprised of our Audio and Imaging businesses, which we license through the brands DTS, HD Radio and FotoNation. These licenses typically include the delivery of software and/or hardware-based solutions to our customers or to their suppliers. Product Licensing revenue is derived primarily from sales into the home, automotive and mobile markets.

The Semiconductor and IP Licensing segment includes our Tessera and Invensas subsidiaries, which license semiconductor packaging and interconnect technologies and associated intellectual property. Semiconductor and IP Licensing revenue is derived from technology and IP licenses to semiconductor companies, foundries and packaging companies. We have a long history of developing and monetizing next-generation technologies, including chip-scale packaging solutions and low-temperature wafer bonding solutions. Today, we are actively developing 3D semiconductor packaging, interconnect and bonding solutions for semiconductors that are used in products such as smartphones, as well as computers and servers used in datacenters. We also provide engineering services to our customers to assist them in their evaluation and adoption of our technologies.

Xperi Inc. operates in multiple segments, providing a diverse range of innovative products and services primarily focused on audio, imaging, and semiconductor technology. The company’s offerings can be broadly categorized into two main segments: Product Licensing and Semiconductor and IP Licensing.

Product Licensing Segment

This segment encompasses the companys audio solutions, HD Radio technology, and imaging solutions, catering to various industries through licensing agreements with a wide array of partners including consumer electronics manufacturers, broadcasters, and content creators.

Audio Solutions

Xperi Inc. is recognized as a leading provider of audio technology solutions, designed to enhance the quality of sound experiences across various platforms. Key components of Xperi’s audio solutions include:

1. DTS Audio Technologies:
- DTS-HD® Master Audio: An advanced surround sound decoder utilizing variable bit-rate technology to deliver high-quality audio while conserving bandwidth.
- DTS Studio Sound™: A comprehensive audio processing suite that offers advanced sound processing features to enhance audio quality.
- DTS Headphone:X®: This technology provides an integrated surround headphone experience, enhancing audio through headphone-specific tuning and customization.
- DTS Play-Fi®: A whole-home wireless audio platform allowing synchronized music streaming across multiple devices over standard Wi-Fi networks. This technology is compatible with various devices and brands, expanding consumer access to high-quality audio experiences.
- DTS:X™: An innovative object-based audio format that enhances spatial rendering and immersion, suitable for various listening environments.

These solutions enable the recording, delivery, and playback of immersive high-definition audio, benefitting consumers through improved experiences whether at home, in the theater, or on mobile devices.

2. Digital Radio Solutions:
- HD Radio™ Technology: The only digital terrestrial broadcast system approved by the FCC for AM/FM radio in the U.S. HD Radio enhances the radio listening experience by providing additional channels, improved sound quality, and advanced data services without subscription fees. Over 2,300 radio stations, including 98 of the top 100 stations in significant U.S. markets, have adopted this technology.

Imaging Solutions

Xperi also provides advanced imaging technologies aimed at enhancing the capabilities of mobile devices and automotive applications. Key offerings include:

1. FotoNation Technologies:
- FacePower®: Advanced algorithms for face detection and tracking, enabling excellent portrait photography with features such as smile and blink recognition, as well as eye tracking.
- FotoSavvy®: A user-friendly interface that incorporates professional photography techniques to enable automatic enhancements and intelligent photography.
- DigitalAperture™: Delivers performance akin to a digital single-lens reflex (D-SLR) camera in mobile devices, addressing limitations in low light, auto-focus speed, and more.

2. Biometric Solutions: Xperi offers cutting-edge biometric solutions for face and iris recognition. These technologies facilitate secure mobile transactions and personalized experiences in various applications, including automotive usage through driver monitoring systems (DMS) and advanced driver assistance systems (ADAS).

3. AutoSuite:
- This product utilizes the companys imaging technologies to provide advanced monitoring systems for vehicles, enhancing security and personalization through integrated face recognition and iris authentication.

4. Image Processing Unit (IPU): A collection of IP cores optimizing power consumption, memory usage, and bandwidth for innovative imaging applications, suitable for edge computing environments that prioritize privacy and energy efficiency.

Semiconductor and IP Licensing Segment

Xperi’s Semiconductor and IP Licensing Segment focuses on licensing technologies and related intellectual property through its subsidiaries, Tessera and Invensas.

1. Tessera Technologies:
- A leader in semiconductor packaging technologies. Tessera’s innovations in chip-scale packaging have been widely adopted across the industry, initially popularized by companies like Intel and later adopted by other semiconductor manufacturers and assembly services.

2. Invensas Corporation:
- Specializes in next-generation semiconductor packaging and interconnect technologies, particularly in applications relevant to DRAM, flash memory, mobile devices, and 3D integrated circuit (3D-IC) assemblies.
- Invensas is noted for its development of low-temperature bonding technologies, such as ZiBond® and DBI®, which enable more resilient and efficient semiconductor fabrication processes. This includes significant improvements in yield, reliability, and cost-effectiveness through advanced bonding techniques with broader applicability across various markets, including networking and automotive sectors.

Overall, Xperi Inc. provides a comprehensive suite of solutions across audio and imaging technologies, alongside advanced semiconductor packaging capabilities, serving a variety of industries and enhancing user experiences with innovative technology.