(Source: Business Wire)
Tessera Technologies, Inc. (Nasdaq: TSRA) today announced Motorola, Inc. has signed a pre-negotiated license agreement with Tessera, settling all outstanding litigation between the companies. Under the worldwide license, Motorola will pay royalties on shipments of certain electronic products including cell phones, set-top boxes, and radio equipment that incorporate unlicensed chips that use Tessera's patented TCC® technology. The license, which charges a volume based fee for otherwise unlicensed chips, enables Motorola to avoid interruption of supply to its customers through compliance with the orders recently issued by the International Trade Commission in Investigation No. 337-TA-605 (Wireless ITC action).
"It is important for us to form long-term commercial relationships to better enable our licensees to use our technology, and this agreement with Motorola does just that," stated Henry R. Nothhaft, president and CEO of Tessera. "In addition to an exercise fee payable under the pre-existing option agreement, the license agreement announced today includes an initial license fee as well as volume based, forward royalties that will be collected over the term of the license. Motorola's action not only rewards Tessera's past innovative efforts but also sends a positive message to other innovators that depend on the patent system to receive appropriate compensation for their inventions. Tessera will continue to support our licensees and partners in good standing, like Motorola, through our ongoing efforts to ensure we are fully compensated for the unlicensed use of our technology."
The company is raising its second quarter 2009 total revenue guidance to range between $59.0 million and $61.0 million. Second quarter 2009 Micro-electronics revenue, all of which will be royalty and license related, is now expected to range between $53.0 million and $55.0 million, driven by the signing of the Motorola license agreement and better than anticipated revenue from other licensees. Prior guidance, announced on April 30, 2009, was for second quarter total revenue to range between $46.0 million and $49.0 million and Micro-electronics revenue to range between $40.0 million to $42.0 million. The company has greater visibility into its second quarter 2009 Imaging & Optics total revenue, which is now expected to be approximately $6.0 million. Prior guidance, given on April 30, 2009, was $6.0 million to $7.0 million.
The company reiterated its guidance on its other second quarter 2009 items, which remain unchanged:
Non-GAAP operating expenses are projected to range between $31.0 million and $32.0 million, excluding litigation expenses.
