More carmakers are getting behind Xperi’s DTS AutoStage hybrid radio infotainment platform.
The company, in releasing its third-quarter financial highlights, said that it has launched DTS AutoStage with Hyundai, Genesis, Kia and an unnamed manufacturer of electric vehicles, expanding its footprint in the connected car market. This news was listed by Xperi as one of its key operating achievements of the quarter.
Mercedes-Benz Group had been the only public automotive partner until now, but Xperi Senior Vice President, Global Radio & Digital Audio Joe D’Angelo told Radio World last month that at least two major carmakers were in the process of downloading DTS AutoStage via their software updates to cars already in the field. He said then that Xperi expected to add five carmakers in the next 12 to 24 months.
Asked on the company’s call with financial analysts about when Xperi will begin to see revenue from these automotive licensing agreements, CEO Jon Kirchner said, “I think you’ll start to see some revenue be recognized in that ’24, ’25 period, but I think it becomes more meaningful as you get into ’25 and ’26 and beyond.”
Kirchner said automotive programs “are very complex, they’re hard to win, but they tend to have great durability and very long-time horizons.”
At last month’s NAB Show New York, Xperi unveiled new details about the analytics capabilities and radio managers’ dashboard of DTS AutoStage.
Asked for comment on the latest news, D’Angelo told Radio World that “Xperi is 100% committed to the future of radio, as we have recently demonstrated with our launch of DTS AutoStage audience insights for broadcasters and with the rollout of our independent media platform solution to four additional global car manufacturers. It’s further proof that our years of collaboration, innovation and industry partnerships have paid off.”
Xperi Inc. reported revenue of $121.6 million during the third quarter, a 3% increase from $117.7 million a year earlier.
Xperi recently separated from Xperi Holding Corp., now known as Adeia Inc.
CFO Robert Andersen told the analyst call: “Our connected car business, which accounted for 17% of third quarter revenue, was $20 million during the quarter, relatively flat with the prior year. We expect DTS AutoStage and DTS AutoSense to grow compared to 2021. This growth will be more than offset by declines in HD Radio and audio solutions due to continued supply chain issues. Therefore, we expect our connected car business to be down roughly mid single digits in 2022 compared to last year.”
Analyst call quotes are from a transcript by Seeking Alpha.
