Xperi Inc. (XPER): Análisis de la Matriz ANSOFF [Actualizado en Ene-2025]

En el panorama de tecnología en rápida evolución, Xperi Inc. está a la vanguardia de la innovación estratégica, aprovechando su robusta matriz Ansoff para navegar por la compleja dinámica del mercado. Al crear estrategias meticulosamente en la penetración del mercado, el desarrollo del mercado, el desarrollo de productos y la diversificación, la compañía demuestra un enfoque sofisticado para el avance y el crecimiento tecnológico. Desde expandir la licencia de IP de semiconductores hasta explorar dominios de vanguardia como la computación cuántica y la cadena de bloques, el plan estratégico de Xperi revela una narración convincente de la transformación adaptativa y la exploración tecnológica de pensamiento a futuro.

Xperi Inc. (Xper) - Ansoff Matrix: Penetración del mercado

Expandir los acuerdos de licencia con clientes de tecnología de semiconductores y automotriz existentes

Xperi Inc. informó 183 acuerdos de licencia de tecnología activa en 2022. Los ingresos por licencias de semiconductores alcanzaron los $ 124.3 millones para el año fiscal.

Categoría de cliente	Número de acuerdos	Contribución de ingresos
Clientes de semiconductores	97	$ 68.7 millones
Clientes de tecnología automotriz	86	$ 55.6 millones

Aumentar los esfuerzos de marketing para resaltar la cartera de IP en tecnologías de transformación digital

Xperi invirtió $ 22.6 millones en gastos de marketing y ventas en 2022. La compañía posee 4,800 patentes emitidas y pendientes a nivel mundial.

• Portafolio de patentes de televisión digital: 1.200 patentes
• Patentes de tecnología de semiconductores: 1.600 patentes
• Patentes de tecnología automotriz: 2,000 patentes

Optimizar las estrategias de precios para las tecnologías centrales de semiconductores y medios

Tasa de licencia promedio por patente: $ 37,500. Licencias de tecnología Margen bruto: 72.4%.

Segmento tecnológico	Precio de licencia promedio	Margen bruto
Tecnologías de semiconductores	$42,000	75.3%
Tecnologías de medios	$33,000	69.2%

Fortalecer los programas de retención de clientes para los clientes actuales de licencias de tecnología

Tasa de retención de clientes en 2022: 88.6%. Tasa de renovación para acuerdos de licencia a largo plazo: 92.3%.

Aumentar las oportunidades de venta cruzada dentro de las líneas de productos de tecnología existente

Tasa de conversión de venta cruzada: 34.7%. Ingresos adicionales de la venta cruzada: $ 41.2 millones en 2022.

• Clientes semiconductores con múltiples licencias de tecnología: 62 clientes
• Clientes automotrices con múltiples licencias de tecnología: 44 clientes

Xperi Inc. (Xper) - Ansoff Matrix: Desarrollo del mercado

Los mercados emergentes objetivo en Asia-Pacífico para la licencia de IP de semiconductores

Xperi Inc. reportó ingresos por licencia de IP semiconductores de $ 63.7 millones en el cuarto trimestre de 2022, con un enfoque específico en la expansión de Asia y el Pacífico.

Mercado	Crecimiento potencial	Objetivos de licencia de IP
Porcelana	18.3% de crecimiento del mercado de semiconductores	Empresas de diseño de semiconductores
Corea del Sur	14.7% de inversión tecnológica	Fabricantes de electrónica de consumo
Japón	12.5% ​​de expansión de semiconductores	Empresas de tecnología automotriz

Expandir las soluciones de tecnología automotriz a nuevas regiones geográficas

El segmento de tecnología automotriz generó ingresos de $ 89.2 millones en 2022, dirigido a la expansión internacional.

• Potencial del mercado automotriz europeo: € 670 mil millones para 2025
• Mercado de tecnología automotriz norteamericana: crecimiento proyectado de $ 382 mil millones
• Mercado de tecnología automotriz de Asia-Pacífico: $ 453 mil millones expansión esperada

Desarrollar asociaciones estratégicas con fabricantes de tecnología internacional

Pareja	Enfoque tecnológico	Inversión potencial
Electrónica Samsung	IP de semiconductores	Colaboración de $ 45 millones
Toyota	Tecnologías automotrices	Desarrollo conjunto de $ 67 millones
Panasónico	Tecnologías de medios	Asociación de $ 32 millones

Buscar oportunidades de licencia de tecnología en sectores de tecnología emergente

Ingresos totales de licencia de Xperi: $ 247.3 millones en 2022

• Potencial de licencia de tecnología 5G: mercado de $ 1.2 mil millones
• AI Semiconductor IP Market: $ 540 millones de crecimiento proyectado
• Licencias de tecnología de Internet de las cosas (IoT): Oportunidad de $ 375 millones

Explore los mercados verticales sin explotar para las tecnologías de semiconductores y medios

Mercado vertical	Tamaño del mercado	Ingresos potenciales
Tecnología de la salud	$ 189 mil millones	$ 42.6 millones de posibles licencias
Dispositivos para el hogar inteligente	$ 135 mil millones	$ 35.4 millones de posibles licencias
Automatización industrial	$ 214 mil millones	$ 51.3 millones de licencias potenciales

Xperi Inc. (Xper) - Ansoff Matrix: Desarrollo de productos

Invierta en I + D para soluciones IP de semiconductores avanzados

Xperi Inc. invirtió $ 146.4 millones en gastos de investigación y desarrollo en 2022. La cartera de soluciones IP de semiconductores de la compañía generó $ 285.6 millones en ingresos para el año fiscal.

I + D Métrica	Valor 2022
Gastos de I + D	$ 146.4 millones
Ingresos de soluciones IP	$ 285.6 millones

Desarrollar plataformas de tecnología automotriz de próxima generación

El segmento de tecnología automotriz de Xperi generó $ 203.7 millones en ingresos en 2022, con 12 fabricantes automotrices principales que actualmente utilizan sus plataformas tecnológicas.

• 12 fabricantes de automóviles utilizando plataformas Xperi
• Ingresos de tecnología automotriz: $ 203.7 millones

Crear tecnologías innovadoras de transformación digital

Las tecnologías de transformación digital de la compañía contribuyeron con $ 97.2 millones a los ingresos totales en 2022, con una tasa de crecimiento año tras año.

Métrica de transformación digital	Valor 2022
Ganancia	$ 97.2 millones
Crecimiento año tras año	14%

Mejorar la cartera IP existente con IA y aprendizaje automático

Xperi asignó $ 42.5 millones específicamente al desarrollo de tecnología de IA y aprendizaje automático en 2022, lo que representa el 29% de su presupuesto total de I + D.

• Inversión de I + D de IA/ML: $ 42.5 millones
• Porcentaje de presupuesto de I + D: 29%

Expandir las tecnologías de diseño de semiconductores

Las tecnologías de diseño de semiconductores de la compañía admitieron 47 diseños de nuevos productos en 2022, con un alcance total del mercado de 215 millones de unidades de dispositivos.

Métrica de diseño de semiconductores	Valor 2022
Nuevos diseños de productos	47
Unidades totales del dispositivo	215 millones

Xperi Inc. (Xper) - Ansoff Matrix: Diversificación

Adquisiciones estratégicas en dominios de tecnología complementaria

En 2022, Xperi completó la fusión con TiVo Corporation con un valor de transacción total de $ 3.04 mil millones. La adquisición amplió la cartera de tecnología de Xperi en los dominios de semiconductores y software.

Año de adquisición	Compañía	Valor de transacción	Enfoque estratégico
2022	TiVo Corporation	$ 3.04 mil millones	Tecnologías multimedia y semiconductores

Soluciones de tecnología de blockchain y ciberseguridad

Xperi invirtió $ 12.5 millones en I + D de ciberseguridad durante el año fiscal 2022, dirigido a la infraestructura de seguridad de semiconductores.

• Inversión de I + D de ciberseguridad: $ 12.5 millones
• Portafolio de patentes en tecnologías de seguridad: 387 patentes activas
• Foco de desarrollo de la infraestructura de seguridad de semiconductores

Inversiones del sector de tecnología emergente

La asignación de investigación de computación cuántica alcanzó los $ 8.3 millones en 2022, lo que representa el 4.2% del presupuesto total de I + D.

Sector tecnológico	Inversión de I + D	Porcentaje de presupuesto
Computación cuántica	$ 8.3 millones	4.2%

Plataformas de tecnología integradas

Xperi generó $ 672 millones en ingresos de plataformas de tecnología entre la industria en 2022.

Soluciones de software innovadoras

El presupuesto de desarrollo de software asignó $ 45.6 millones en 2022, aprovechando la experiencia de semiconductores.

• Presupuesto de desarrollo de software: $ 45.6 millones
• Patentes totales relacionadas con los semiconductores: 1,247
• Ingresos de software: $ 276 millones en 2022

Xperi Inc. (XPER) - Ansoff Matrix: Market Penetration

You're looking at how Xperi Inc. (XPER) can squeeze more revenue out of the customers and platforms it already has in the bag. This is about deepening the relationship and increasing the usage of existing tech stacks, like pushing the TiVo OS further into the Smart TVs you've already placed.

Aggressively increase TiVo OS activation rates within existing Smart TV OEM partnerships.

The focus here is on driving adoption of the TiVo One platform across the installed base. By the end of the third quarter of 2025, Xperi Inc. reported reaching 4.8 million Monthly Active Users (MAUs) on the TiVo One platform. This represented a significant 30% sequential growth during that quarter alone. The company hit its 2025 goal of adding two new TV partnerships, bringing the total number of TiVo OS partners to 10. Management reiterated the expectation to exit 2025 above 5 million MAUs on the TiVo One platform. More than 75 percent of this user base is situated in the US and the five largest European countries. Furthermore, the company expanded its US-based connected TV monetization footprint by signing several new customers in Q1 2025, bringing the cumulative total of TiVo broadband wins to over 30.

Drive higher engagement and ad revenue per user on the TiVo OS platform in the US market.

Monetization is directly tied to user engagement, measured by the Average Revenue Per User (ARPU) for the TiVo One platform. As of September 30, 2025, the reported ARPU stood at $8.75. This figure is tracking toward the stated year-end 2025 goal of $10, with a long-term target set north of $20. The company has made progress securing advertising partnerships, which are expected to accelerate ad revenue from this growing footprint.

Offer bundled DTS audio and video solutions to current consumer electronics licensees for deeper integration.

While the primary growth story is the Media Platform, the Consumer Electronics segment, which includes DTS audio tech, is also seeing penetration gains through existing relationships. For the third quarter of 2025, Consumer Electronics revenue, excluding the Perceive divestiture, showed growth of $3 million, which translates to 20% year-over-year growth, driven by new agreements and higher per-unit audio technology revenues. In the automotive space, the DTS AutoStage platform has reached over 13 million vehicles as of Q3 2025, with initial monetization expected in 2026.

Implement competitive pricing on IP licensing renewals to retain major existing customers.

Retention in the established Pay TV business relies on securing renewals for the underlying IP and platform services. In Q3 2025, IPTV subscribers grew 32% year-over-year to reach 3.2 million households, with IPTV revenue up 18% year-over-year. A key retention success was the renewal of the agreement with the National Content and Technology Cooperative (NCTC), which covers over 70 U.S. operators and secures IPTV subscriber commitments for four additional years. Minimum guarantee (MG) arrangements, a form of IP licensing revenue, made up just over 20% of total revenue in 2024 and are projected to stay in the low 20% range of total revenue for 2025.

Here's a quick look at the core operational metrics driving this market penetration strategy as of the latest reported quarter:

Metric	Value	Period/Target
TiVo One MAUs	4.8 million	As of September 30, 2025
TiVo One MAU Sequential Growth	30%	Q3 2025
TiVo One ARPU	$8.75	As of September 30, 2025
TiVo One ARPU Year-End Goal	$10.00	End of 2025
Total TiVo OS TV Partners	10	Achieved in Q3 2025
IPTV Subscribers	3.2 million households	Q3 2025
NCTC Operators Covered	Over 70 U.S. operators	Renewal details

The Pay TV business continues to be a source of stable, recurring revenue through existing contracts, which is crucial for funding the newer platform growth. You can see the scale of the existing customer base through these figures:

• IPTV subscribers grew 32% year-over-year to 3.2 million households in Q3 2025.
• IPTV revenue saw an 18% year-over-year increase in Q3 2025.
• The NCTC renewal secured commitments for four additional years.
• The company expects full-year 2025 revenue to land between $440 million and $460 million.

Finance: draft 13-week cash view by Friday.

Xperi Inc. (XPER) - Ansoff Matrix: Market Development

You're looking at how Xperi Inc. can take its existing technologies-TiVo OS, DTS AutoSense, and DTS Play-Fi-and push them into new markets or customer segments. This is Market Development, and the numbers show where the traction is right now in late 2025.

Expand TiVo OS partnerships into new geographic regions, specifically targeting emerging markets in Southeast Asia.

While the focus has been heavily on established markets, the geographic footprint for TiVo OS is already quite broad. Smart TVs Powered by TiVo are currently available across 15 European countries and in over 40 countries globally as of the third quarter of 2025. The platform has 8 partners and supports 33 brands across Europe. A major step into a new, large market was the entry into the U.S. television sector with Sharp Home Electronics Company of America, with TVs becoming available as soon as February 2025. To support this global push, Xperi Inc. signed international metadata agreements with Korea Telecom and Proximus in Belgium. The overall installed base is growing, with Monthly Active Users on the TiVo One platform reaching 4.8 million as of the end of Q3 2025. The company is actively working toward a year-end goal of ten TV OEM partners for TiVo OS, having signed its ninth partner in Q3 2025.

The monetization goal for this expanded user base is clear:

• Q3 2025 Average Revenue Per User (ARPU) for TiVo One was $8.75.
• The target ARPU for Xperi Inc. as the company exits 2025 is set at $10.

Secure new automotive OEM design wins for DTS AutoSense in European and Asian vehicle lines.

The DTS AutoStage platform, which includes the DTS AutoStage Video Service Powered by TiVo, is seeing significant adoption in the connected car space. As of the end of Q3 2025, the platform is installed in over 13 million vehicles worldwide. This represents growth from the 10 million vehicle milestone announced at CES 2025. More than 6 million of those vehicles are in North America and utilize both DTS AutoStage and HD Radio. The strategy is clearly targeting Asia, evidenced by the signing of a "significant" multi-year HD Radio contract with a large Asia-based Tier 1 supplier. While the expansion into Europe is ongoing with partners like BMW, the next major deployment for the video service is expected from a Japanese car company starting in 2026. Monetization for the connected car data segment is planned to begin in 2026 and become more material in 2027.

Here is a snapshot of the Connected Car footprint growth:

Metric	Value (Latest 2025 Data)	Reference Point
DTS AutoStage Vehicles Installed	13 million+	Q3 2025 End
Vehicles in North America (with HD Radio)	6 million+	CES 2025 / Q1 2025
Countries with DTS AutoStage Content Aggregation	Approximately 60	Q3 2025 Update
Projected Start of Material Data Monetization	2027	Analyst Call Update

Adapt DTS Play-Fi for commercial installations, entering the B2B hospitality and retail audio market.

Xperi Inc. is leveraging its DTS audio technologies beyond consumer devices. The company renewed a multi-year contract with Vestel to deploy DTS audio solutions across its TV brands. While specific revenue or installation numbers for the DTS Play-Fi B2B hospitality and retail segment are not yet public, the strategy involves expanding the use of its core audio technology into commercial environments.

Partner with a major European telecom to launch TiVo OS as a white-label set-top box solution.

This strategy aligns with the growth in Xperi Inc.'s Pay TV segment, which focuses on video-over-broadband (IPTV) solutions. The subscriber base for these solutions has shown strong growth, reaching 3.2 million households as of Q3 2025, representing a 32% year-over-year increase. This is up from over 2.75 million households at the end of Q1 2025, which was a 36% year-over-year increase then. The company secured multi-year contract renewals with large operators including Liberty Latin America and Cable One. By August 2025, the total IPTV footprint reached over 3 million subscriber households. This existing operator relationship base is the foundation for launching TiVo OS as a white-label set-top box solution in Europe.

Key Pay TV Metrics:

• Q3 2025 Video-over-Broadband Subscribers: 3.2 million households.
• Q3 2025 Year-over-Year Subscriber Growth: 32%.
• Q1 2025 Year-over-Year Subscriber Growth: 36%.

Xperi Inc. (XPER) - Ansoff Matrix: Product Development

You're looking at how Xperi Inc. is pushing new products into existing markets, which is the core of Product Development on the Ansoff Matrix. This isn't about finding new customers for old tech; it's about making the tech better for the customers you already serve in media and automotive.

Premium, Next-Generation DTS Audio Codec for High-End Gaming Consoles and Soundbars

The development focus here is on maintaining the premium audio experience that the DTS brand is known for, especially in demanding environments like gaming. While specific next-generation codec revenue isn't broken out, the overall strength in the Connected Car segment, which heavily features DTS AutoStage, shows traction in high-value integration.

The DTS AutoStage platform, which combines radio, internet metadata, and video for the automotive experience, has reached a footprint of over 13 million vehicles as of the third quarter of 2025. This platform monetization strategy relies on licensing fees, advertising, and data, which is the same model that would underpin a premium audio codec licensing structure in consumer electronics.

For context on the installed base that could adopt new audio tech, HD Radio technology is implemented in more than 110 million vehicles, with penetration approaching 60% of new cars shipped annually throughout North America. Furthermore, Xperi Inc. signed a "significant" multi-year HD Radio contract with a large Asia-based Tier 1 supplier in the third quarter of 2025, indicating continued success in securing long-term licensing commitments.

Advanced AI-Driven Personalization and Content Recommendation Features for the TiVo OS Interface

The TiVo OS strategy is clearly centered on scaling the user base to monetize advanced features like personalization. You can see the direct results of this product push in the Monthly Active User (MAU) growth for the TiVo One platform.

As of September 30, 2025, Xperi Inc. achieved 4.8 million Monthly Active Users on the TiVo One platform. This represented a 30% sequential growth during the third quarter of 2025. The company had set a goal to reach 5 million MAUs by the end of the 2025 fiscal year. The Average Revenue Per User (ARPU) for the TiVo One platform was reported at $8.75 as of that same date.

These features are built into the product experience, which includes:

• TiVo One home page video ad units for engaging promotions.
• Expanded content discovery features enabling more apps on the home screen.
• A new partner picks carousel delivering personalized streaming recommendations.

Integration of Perceive's Edge AI Capabilities Directly into the TiVo OS for Enhanced, On-Device User Analytics

It's important to note the status of the Perceive business when discussing its integration. Xperi Inc. sold the Perceive business to Amazon for $80 million in cash, with the deal closing by the end of 2024. This means that any direct, ongoing product development integration of Perceive's edge AI processor, the Ergo 2, into Xperi's 2025 product roadmap would be limited to the residual impact or pre-sale technology transfer.

The divestiture impacted reported revenue; for instance, the Q3 2025 Consumer Electronics revenue of $18.8 million was up 20% excluding the divested Perceive business. The focus on on-device analytics is now likely channeled through the remaining TiVo OS development, which already uses advanced metadata and behavioral analytics to drive engagement and reduce churn.

Launch of a New, Simplified IP Licensing Tier for Smaller, Fast-Growing Consumer Electronics Manufacturers

While Xperi Inc. didn't publish the specific terms or revenue from a new, simplified licensing tier for smaller manufacturers in the Q3 2025 results, the overall licensing segment shows clear growth drivers in the Consumer Electronics and Connected Car spaces, suggesting successful productization of licensing frameworks.

The Consumer Electronics revenue segment grew by 11% year-over-year in Q3 2025, reaching $18.8 million. The company has a unified ecosystem that reaches highly engaged consumers, which is the value proposition for any licensing tier.

The success in securing new partners validates the licensing approach:

Metric	Value	Context
Total TiVo OS Partners (Q3 2025)	10	Achieved 2025 goal with signing of a European brand for a leading Asia-based Original Device Manufacturer.
Connected Car Revenue Growth (Q3 2025)	36%	Driven by DTS AutoStage platform expansion.
FY 2025 Revenue Guidance (Range)	$440M - $460M	Maintained full-year guidance despite segment declines.

The company is focused on driving unit growth in consumer electronics from DTS audio solutions as a key growth factor.

Xperi Inc. (XPER) - Ansoff Matrix: Diversification

You're looking at Xperi Inc. (XPER) as it navigates a pivot away from legacy revenue streams, like the Pay TV segment which saw revenue drop 39% year-over-year to $49.8 million in Q3 2025. The company is reiterating its fiscal year 2025 revenue guidance in the $440 million to $460 million range, with an adjusted EBITDA margin target of 15% to 17%, so any new market entry needs to scale fast to move the needle on that top line. Diversification here means moving the AI/low-power processing expertise, which was part of the divested Perceive business, into entirely new, high-growth verticals.

Apply Perceive's low-power AI chips to the industrial IoT sector, monitoring factory equipment.

This move targets the Industrial IoT (IIoT) market, which the data suggests was valued at $514.39 billion globally in 2025, expanding at a Compound Annual Growth Rate (CAGR) of 17.20% through 2034. The manufacturing end-use segment already accounted for 28.7% of the total IIoT revenue share in 2024. Your low-power AI chips would directly compete in the hardware component space, which captured 46.73% of the IIoT market in 2024, but the real prize is the services segment, projected to hit a CAGR of 24.3% between 2025 and 2034. This strategy leverages existing chip expertise to address the growing need for predictive maintenance, a key driver in the sector.

Develop a new software-as-a-service (SaaS) platform for smart city infrastructure using computer vision.

This targets the AI in Smart Cities market, which was accounted for at $50.63 billion in 2025 and is projected to grow at a CAGR of 17.92% until 2034. Within this, the computer vision technology segment is anticipated to show the fastest growth during the predicted timeframe. The broader Computer Vision Market size was estimated at $28.40 billion in 2025, with manufacturing leading in 2024 revenue share at 37.5%. A SaaS platform would focus on recurring revenue, a model Xperi Inc. is clearly trying to build, given the $8.75 Average Revenue Per User (ARPU) achieved on the TiVo One platform as of September 30, 2025. The on-premises deployment mode for smart city AI is anticipated to grow at a remarkable CAGR between 2025 and 2034, which could influence the deployment model for any new SaaS offering.

Acquire a small, specialized company to enter the digital health monitoring market with Xperi Inc. (XPER)'s AI.

Entering digital health monitoring means tapping into a segment with significant projected growth. The Digital Health Monitoring Devices Market size was $7.8 billion in 2025, with an expected CAGR of 21.6% through 2029. The overall Digital Health Market size surpassed $420.08 billion in 2025. An acquisition would immediately place Xperi Inc. in a market driven by the increasing prevalence of chronic diseases and the demand for remote patient monitoring solutions. The hardware component of the digital health market is a natural fit for integrating AI processing capabilities, similar to the hardware focus in the IIoT space.

Create a new, non-media-related IP portfolio to license to the rapidly growing cleantech industry.

This is a pure IP monetization play, moving beyond media and automotive. The Patent Licensing Market was poised to reach an estimated $150 billion by 2025. The cleantech space is seeing an acceleration in IP activity, with global green patent filings surging by around 20% in 2025. By 2024, there were already over 750,000 international patents in cleantech. This strategy allows Xperi Inc. to generate royalty-like revenue without the capital expenditure of developing physical products, much like the existing DTS and HD Radio licensing models, but applied to sustainability innovations. The focus on IP rights will help IP owners have a seat at the table for collaborative IP frameworks like patent pools.

Here's a quick look at the potential market scale for these diversification vectors:

Market Segment	2025 Market Size (USD)	2025-2034 CAGR (%)	Relevant Xperi Metric
Industrial IoT (IIoT)	Between $475B and $514B	17.20%	FY 2025 Revenue Guidance: $440M - $460M
AI in Smart Cities	$50.63 billion	17.92%	Q3 2025 Non-GAAP EPS: $0.28
Digital Health Monitoring Devices	$7.8 billion	21.6% (to 2029)	Connected Car Revenue (Q3 2025): $34.6 million
Patent Licensing (General)	Estimated $150 billion	9.5% (to 2033)	Cash and equivalents (End Q3 2025): $97 million

The company has already demonstrated success in scaling platform users, with TiVo One Monthly Active Users reaching 4.8 million in Q3 2025, a 30% sequential jump. This user-growth discipline is what you'd need to apply to any new market entry. The current cash position of $97 million at the end of Q3 2025, coupled with a positive free cash flow of $2 million for the quarter, provides a base for strategic acquisitions, like the one proposed for digital health, or investment in new IP development.

• Apply AI chips to IIoT for predictive maintenance.
• SaaS platform targets Smart City growth, fastest in Computer Vision.
• Acquisition targets the $7.8 billion Digital Health Monitoring Devices market.
• New IP portfolio leverages existing licensing expertise for Cleantech.
• Workforce reduction aims for $30-$35 million in annual savings.