Tessera Technologies Inc (TSRA) is scheduled to report the third quarter results on Thursday, October 29, 2009. In the last quarter, the company's actual earnings exceeded the market's consensus estimate significantly. The company is more likely to continue its positive earnings streak in Q3-2009 as well.
Analysts' estimates for the quarter ending September 2009 (Q3) range from a low of $0.19 to a high of $0.30, with a consensus of $0.22. For the fiscal quarter ending September 2009, the consensus EPS forecast has remained the same over the past week at $0.22 and increased over the past month from $0.21. Over the past one month and three months period, the consensus forecast for the September quarter has increased. In the last three years, Q3 revenue trended up over Q2 revenues. However, the pattern is expected to be broken as the company gave year-over-year lower guidance for the third quarter. The company gave revenue guidance in the range between $60 million and $62 million. This compares to the third quarter of 2008 figure of $63.5 million, which included revenue from one-time self audits performed by certain customers. Micro-electronics revenue is expected to be in the range of $54 million and $56 million and it is all royalty and license related. As such, the third quarter royalties will be impacted by the demand in the DRAM and wireless markets in the second quarter, which while for many was stronger than anticipated, was still down significantly year-over-year. Third quarter of 2009 imaging and optics revenue in total is expected to be $6 million.
The company continues to expand its R&D resources, focusing on high growth opportunities such as wafer-level camera and silent air cooling while continuing the benefit from its expense control in all other areas. As a result, third quarter of 2009 non-GAAP operating expenses are expected to range between $30 million and $31 million, up approximately 10% from the prior quarter due to the increased products and services revenue and increased activity in the product launch services.
Going forward, for the fiscal year ending December 2009, the consensus EPS forecast has remained the same over the past week at $1.49 and increased over the past month from $1.48. Over the past one month and three months period, the consensus forecast for the full year has increased.
The company's stock closed Tuesday at $26.97, compared to the 52 week range of $8.33 and $32.17. The stock has climbed down from $31.40, its third consecutive new high for the year scaled in the past week. The stock now seems to be trading in the appropriate range.
