Shares of Xperi (XPER) have skyrocketed today, up by 43% as of 1:15 p.m. EST, after the company announced it had settled a patent dispute with Samsung. Xperi also boosted its outlook for the fourth quarter as a result.
Xperi subsidiary Tessera had sued Samsung in September 2017 for patent infringement, alleging that the South Korean conglomerate infringed on two dozen patents around semiconductor processing, bonding, and packaging technologies. Tessera also alleged Samsung infringed on patents involving imaging technologies. Analysts were skeptical that the lawsuit would work, with Craig-Hallum analyst Richard Shannon initially saying that hopes for a settlement were "wishful thinking." The companies have now settled, but no terms or conditions were disclosed.
"We have a long-standing relationship with Samsung and are pleased to put this dispute behind us," Xperi CEO Jon Kirchner said in a statement. "We are hopeful that the settlement and license agreement will open the door for our two companies to work together on a number of new technologies going forward."
Xperi also updated its outlook for the fourth quarter and full-year 2018. The company now expects non-GAAP billings in the fourth quarter to come in at $140 million to $145 million, up from its prior forecast of $109 million to $124 million. Non-GAAP operating expenses are also expected to be higher now at $63 million to $65 million, compared to its previous outlook of $59 million to $63 million.
For the full-year 2018, non-GAAP billings should be $446 million to $451 million, up from a prior range of $415 million to $430 million. Operating cash flow for the year should now be $140 million to $150 million, compared to the previous guidance of $120 million to $130 million.