Xperi stock dropped about 12% to US$6.86 today, even as the company turned in one of its cleanest quarters in recent memory on profitability. The headline is margin. Adjusted earnings before interest, tax, depreciation and amortization landed at US$24m, equal to 21% of revenue, and non GAAP earnings per share came in at US$0.28 while generally accepted accounting principles still showed a small net loss of US$1.5m.

Short term traders focused on the red screen. Longer term investors will likely focus on whether this margin progress in Xperi’s media and connected car businesses can hold through the next few years.

Impressed by Xperi’s improving margins but uneasy about the share price drop and small net loss? You can benchmark Xperi…