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Tessera Technologies, Inc. (TSRA) (the "Company") today announced
financial guidance for the third quarter ending Sept. 30, 2012.
Third quarter 2012 total revenue is expected to range between $66.5
million and $69.0 million, an increase of approximately 8% to 12% from
the prior quarter. Revenue from the Intellectual Property (IP) segment
is expected to range between $53.0 million and $54.0 million, and
includes the payment of approximately $20 million related to the interim
award the International Court of Arbitration of the International
Chamber of Commerce (ICC) issued on July 6, 2012, in favor of Tessera,
Inc. in its dispute with Amkor Technology, Inc. This payment will be
reflected in two income statement categories, approximately $16.0
million to $17.0 million in royalty and license fees and approximately
$3.0 million to $4.0 million in other income.
DigitalOptics segment revenue is expected to be in the range of $13.5
million to $15.0 million. Products and services revenues are expected to
be in the range of $11.5 million to $12.5 million. DigitalOptics
royalties and license fees are expected to be in the range of $2.0
million to $2.5 million.
Non-GAAP operating expenses for the third quarter 2012, excluding
litigation expenses, are expected to range between $57.0 million and
$59.0 million, which compares to $43.3 million in the prior quarter and
includes expenses related to both the operations of the DigitalOptics
Corporation’s Zhuhai based camera module facility and to the new lens
manufacturing facility in Taiwan, which will require an initial
investment of approximately $30 million.
GAAP operating expenses for the third quarter 2012, excluding litigation
expense, are expected to range between $67.0 million and $71.0 million.
Included in the GAAP operating expenses are stock-based compensation,
which is expected to range between $4.0 million and $5.0 million, and
amortization, which is expected to range between $6.0 million and $7.0
million.
The Intellectual Property segment’s litigation expense in the third
quarter of 2012 is expected to be higher than the second quarter 2012
expense of $6.7 million due to increased activity in ongoing cases.
Third Quarter 2012 Results
The Company expects to announce the financial results for the quarter
ending Sept. 30, 2012, on Nov. 1, 2012.
Safe Harbor Statement
This press release contains forward-looking statements, which are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve risks
and uncertainties that could cause actual results to differ
significantly from those projected, particularly with respect to the
Company’s financial guidance, the announcement date of the Company’s
third quarter financial results and the initial investment in the new
lens manufacturing facility in Taiwan. Material factors that may cause
results to differ from the statements made include the plans or
operations relating to the Company’s businesses; market or industry
conditions; the expiration of license agreements and the cessation of
related royalty income; the failure, inability or refusal of licensees
to pay royalties; initiation, delays, setbacks or losses relating to the
Company’s intellectual property or intellectual property litigations, or
invalidation or limitation of key patents; the timing and results, which
are not predictable and may vary in any individual proceeding, of any
ICC ruling or award, including in the Amkor arbitration; fluctuations in
operating results due to the timing of new license agreements and
royalties, or due to legal costs; changes in patent laws, regulation or
enforcement, or other factors that might affect the Company’s ability to
protect or realize the value of its intellectual property; the risk of a
decline in demand for semiconductor and camera module products; failure
by the industry to use technologies covered by the Company’s patents;
the expiration of the Company’s patents; the Company’s ability to
successfully complete and integrate acquisitions of businesses,
including the integration by DigitalOptics Corporation ("DOC") of its
recently acquired camera module manufacturing facility in Zhuhai, China;
the risk of loss of, or decreases in production orders from, customers
of acquired businesses; financial and regulatory risks associated with
the international nature of the Company’s businesses; failure of the
Company’s products to achieve technological feasibility or
profitability; failure to successfully commercialize the Company’s
products; changes in demand for the products of the Company’s customers;
limited opportunities to license technologies and sell products due to
high concentration in the markets for semiconductors and related
products and camera modules; the impact of competing technologies on the
demand for the Company’s technologies and products; failure by DOC to
become a vertically integrated camera module supplier; and the reliance
on a limited number of suppliers for the components used in the
manufacture of DOC products. You are cautioned not to place undue
reliance on the forward-looking statements, which speak only as of the
date of this release. The Company’s filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for the
year ended Dec. 31, 2011, and its Quarterly Report on Form 10-Q for the
quarter ended June 30, 2012, include more information about factors that
could affect the Company’s financial results. The Company assumes no
obligation to update information contained in this press release.
Although this release may remain available on the Company’s website or
elsewhere, its continued availability does not indicate that the Company
is reaffirming or confirming any of the information contained herein.
About Tessera Technologies
Tessera Technologies, Inc. is a holding company with operating
subsidiaries in two segments: Intellectual Property and DigitalOptics.
Our Intellectual Property business generates revenue from patented
innovations through license agreements with semiconductor companies and
outsourced semiconductor assembly and test companies. Tessera, Inc.
pioneered chip-scale packaging solutions for the semiconductor industry.
Our DigitalOptics business delivers innovation in imaging and optics
with products and capabilities that enable expanded functionality in
increasingly smaller devices. Our miniaturized camera module solutions
provide cost-effective, high-quality camera features, including Micro
Electro Mechanical Systems ("MEMS")-based autofocus, extended depth of
field ("EDoF"), zoom, image enhancement and optical image stabilization.
We also offer customized micro-optic lenses from diffractive and
refractive optical elements to integrated micro-optical subassemblies.
For more information call 1.408.321.6000 or visit www.tessera.com.
Tessera, Tessera, Inc., the Tessera logo, DigitalOptics Corporation, and
Invensas Corporation are trademarks or registered trademarks of
affiliated companies of Tessera Technologies, Inc. in the United States
and other countries. All other company, brand and product names may be
trademarks or registered trademarks of their respective companies.
Non-GAAP Financial Measures
In addition to disclosing financial results calculated in accordance
with U.S. generally accepted accounting principles (GAAP), the Company’s
earnings guidance contains non-GAAP financial measures adjusted for
either one-time or ongoing non-cash acquired intangibles amortization
charges, acquired in-process research and development, all forms of
stock-based compensation, impairment charges on long-lived assets and
goodwill, and related tax effects. Management believes that the non-GAAP
measures used in this release provide investors with important
perspectives into the Company’s ongoing business performance. The
non-GAAP financial measures disclosed by the Company should not be
considered a substitute for, or superior to, financial measures
calculated in accordance with GAAP, and the financial measures
calculated in accordance with GAAP should be carefully evaluated. The
non-GAAP financial measures used by the Company may be calculated
differently from, and therefore may not be comparable to, similarly
titled measures used by other companies.
TSRA-E
SOURCE: Tessera Technologies, Inc.
Tessera Technologies, Inc.
Rick Neely, 408-321-6756
Chief Financial Officer
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