Activist Rubric nominates two directors at Xperi. Here’s how the firm may help enhance shareholder value

Business: Xperi is a technology company that develops software solutions and has the following four main business segments. First, there's pay-TV, which provides backend software for internet-enabled cable boxes. There is the consumer electronics segment, which delivers audio and media technology for consumer devices at home and on mobile. There is also the connected car unit, which brings high-quality multimedia and personalization to the connected car. Finally, Xperi has an independent media platform that allows Smart TV original equipment manufacturers to brand the experience, retain customer ownership and generate recurring revenues through the company's TiVo brand.

Stock Market Value: $480.29M ($11.05 per share)

Percentage Ownership: 7.6%

Average Cost: $11.94

Activist Commentary: Rubric Capital is a New York-based hedge fund founded by David Rosen. It first got its start as a division of SAC Capital while Rosen was working there. The firm was launched independently in October 2016 by Rosen, who is a managing member. Rubric is a deep value, long/short investor that will become active in situations that require it. The firm has filed five previous 13D's in its history and gained board representation in three of those situations.

On Jan. 22, Rubric nominated Deborah S. Conrad, former senior vice president and chief marketing officer of Hinge Health, and Thomas A. Lacey, former CEO and director of Xperi's predecessor company, for election as directors to Xperi's board at the company's 2024 annual meeting.

Xperi has mid to high single-digit growth, over $500 million of revenue in 2023 and over 75% gross profit margins. However, the company is only guiding to $35 million of earnings before interest, taxes, depreciation and