Founder, BWS Financial Inc

Hamed Khorsand

Founder

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BWS Financial Inc

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Equity Bottom-Up

<ul>
<li>ADEA revised its full year outlook after electing to sue long-time customer Shaw Communications for breach of contract</li>
<li>Shaw was acquired by Rogers Communications (RCI). ADEA claims Shaw is no longer paying ADEA even though the two companies had signed a license renewal in 2019</li>
<li>We are reducing our 2023 revenue forecast to approximately $387.7 million with operating income of $250.8 million</li>
</ul>


ADEA revised its full year outlook after electing to sue long-time customer Shaw Communications for breach of contract
Shaw was acquired by Rogers Communications (RCI). ADEA claims Shaw is no longer paying ADEA even though the two companies had signed a license renewal in 2019
We are reducing our 2023 revenue forecast to approximately $387.7 million with operating income of $250.8 million


<ul>
<li>ADEA reported second quarter results highlighting the progress of renewing several licenses and generating free cash flow</li>
<li>ADEA had previously disclosed the second quarter would be the low revenue point of the year with modest sequential growth for the remainder of the year</li>
<li>ADEA announced several license renewals as we continue to wait for large new licensees</li>
</ul>


ADEA reported second quarter results highlighting the progress of renewing several licenses and generating free cash flow
ADEA had previously disclosed the second quarter would be the low revenue point of the year with modest sequential growth for the remainder of the year
ADEA announced several license renewals as we continue to wait for large new licensees


ADEA: Free Cash Flowing to Debt Reduction

<ul>
<li>ADEA reported first quarter results highlighting the Company’s ability to generate free cash flow from its licensing business as it signed more contract renewals in the period</li>
<li>After signing ten license agreements in the fourth quarter of 2022, ADEA signed another eight agreements in the first quarter.</li>
<li>ADEA maintained its full year outlook on all metrics. ADEA is projecting adjusted EBITDA of $262M at midpoint. ADEA is applying its free cash flow to reducing its debt balance</li>
</ul>


ADEA reported first quarter results highlighting the Company’s ability to generate free cash flow from its licensing business as it signed more contract renewals in the period
After signing ten license agreements in the fourth quarter of 2022, ADEA signed another eight agreements in the first quarter.
ADEA maintained its full year outlook on all metrics. ADEA is projecting adjusted EBITDA of $262M at midpoint. ADEA is applying its free cash flow to reducing its debt balance


<ul>
<li>ADEA has seen its stock price decline in the past month since announcing license agreements with two major NAND memory makers</li>
<li>This could have put too much emphasis on the semiconductor side of the business even though it is purely additive to the business model</li>
<li>The expected year over year decline in first quarter 2023 revenue is related to one-time license payment last year</li>
</ul>


ADEA has seen its stock price decline in the past month since announcing license agreements with two major NAND memory makers
This could have put too much emphasis on the semiconductor side of the business even though it is purely additive to the business model
The expected year over year decline in first quarter 2023 revenue is related to one-time license payment last year


<ul>
<li>ADEA announced semiconductor licenses covering nearly all the remaining NAND memory market the Company has yet to sign. Both Western Digital (WDC) and Kioxia signed long term hybrid bonding licenses</li>
<li>ADEA has been targeting a change in their license approach and these two licenses would be the first of such a change. The licenses are variable in nature </li>
<li>ADEA was already assuming WDC and Kioxia would sign licenses this year when management provided 2023 revenue guidance.</li>
</ul>


ADEA announced semiconductor licenses covering nearly all the remaining NAND memory market the Company has yet to sign. Both Western Digital (WDC) and Kioxia signed long term hybrid bonding licenses
ADEA has been targeting a change in their license approach and these two licenses would be the first of such a change. The licenses are variable in nature 
ADEA was already assuming WDC and Kioxia would sign licenses this year when management provided 2023 revenue guidance.


United States

Adeia Inc. operates as a consumer and entertainment product and intellectual property licensing company. The Company media solutions for use with traditional linear television in connection with OTT, direct-to-consumer, and social media services that provide access to entertainment inside and outside the home on a broad array of devices. Adeia serves customers worldwide.

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Adeia (ADEA US)

ADEA: Adjusting to Customer Dispute

ADEA's contract dispute with Shaw Communications is customer specific and not likely to spillover to issues with other companies

BWS Financial Inc

ADEA: Free Cash Flowing to Debt Reduction

ADEA continues to operate as expected and generate free cash flow to reduce its debt balance. We are expecting gradual sequential growth in revenue...

BWS Financial Inc

ADEA: Adios to Debt

ADEA used the $63 million in free cash flow generated in the first quarter along with cash on its balance sheet to reduce its debt balance by...

BWS Financial Inc

ADEA: Preview to Free Cash Flow

ADEA should continue to expand its revenue from pay TV and over the top ("OTT") operators resulting in higher free cash flow to reduce its debt...

BWS Financial Inc

ADEA: More Deals Less Problems

ADEA announced IP licensing deals with WDC and Kioxia. The two combined have more than 30% share of the NAND memory market and bring ADEA's signed...

BWS Financial Inc

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