Tessera Technologies, Inc. (Nasdaq: TSRA), a provider of miniaturization solutions that transform wireless, computing and consumer electronic products, is scheduled to report its financial results for the first quarter ended March 31, 2009, after market close on Thursday (April 30). The company is expected to report its results on the similar lines to its earnings estimates (prior guidance).
Strong business portfolio with significant customer base
The company operates two reportable businesses: intellectual property; and product and service business. The intellectual property business is primarily focused on licensing technologies in the company’s core markets, including DRAM, Flash, SRAM, DSP, ASIC, micro-controllers, general purpose logic and analog devices and imaging and optics technologies. The key functions of this division include licensing, intellectual property management and marketing. The product and service business offers small form factor micro-optics to the imaging industry. This segment also offers solutions to address the challenges of electronic products miniaturization from a system perspective and wafer-level optics, through the use of consumer imaging and optics technologies. The company maintains significant customer base, in addition to the strong business portfolio.
The company’s technologies are currently licensed to more than 100 companies, including more than 70 companies licensing its semiconductor packaging technology. For the years ended December 31, 2008, 2007 and 2006, two of its customers are accounted for over 10% of revenue.
Stronger fourth quarter and full year result for FY2008
Tessera Technologies reported strong fourth quarter and full year results ended Dec. 31, 2008. The revenue for the fourth quarter 2008 stood at $69.1 million, an increase of 37% over the last year’s fourth quarter. The total revenue includes the royalty and license fees of $62.5 million (an increase of 30% over the fourth quarter 2008), and product and service revenues of $6.5 million. The strong revenue growth is primarily attributed to the stronger than expected royalty revenue from certain existing customers and option fees from Motorola.
The adjusted net income for the fourth quarter of 2008 was $20.4 million or $0.41 per diluted share. The net income is adjusted for the operating expenses such as non-cash tax expense, acquired intangibles amortization, charges for acquired in-process research and development, and stock-based compensation expense.
Similarly, the total revenue for the full year 2008 stood at $248.3 million (Royalty and license fees of $220.3 million; and product and service revenues of $27.9 million).
