Tessera Technologies, Inc. (NASDAQ:TSRA) (the "Company") today announced
financial guidance for the second quarter ending June 30, 2012.
Second quarter 2012 total revenue is expected to range between $59.0
million and $60.0 million, an increase of approximately 26% to 29% from
the prior quarter. Revenue from the Intellectual Property segment is
expected to range between $50.5 million and $51.0 million, which
includes one-time payments of approximately $8.0 million, lower reported
unit volumes of certain DRAM licensees, and the transitional impact of a
renewed contract with a major DRAM licensee. For the DigitalOptics
segment, revenue is expected to be in the range of $8.5 million to $9.0
million, comprising royalties and license fees of approximately $5.0
million, as well as products and services revenues in the range of $3.5
million to $4.0 million.
Non-GAAP operating expenses for the second quarter 2012, excluding
litigation expenses, are expected to range between $44.0 million and
$45.0 million, which compares to $43.4 million in the prior quarter and
includes expenses related to our continued investment in MEMS, lens, and
camera module designs in our DigitalOptics segment.
GAAP operating expenses for the second quarter 2012, excluding
litigation expense, are expected to range between $56.0 million and
$57.0 million. Included in the GAAP operating expenses are stock-based
compensation, which is expected to be approximately $5.7 million, and
amortization, which is expected to be approximately $6.3 million.
The Intellectual Property segment’s litigation expense in the second
quarter of 2012 is expected to be significantly higher than the first
quarter 2012 expense of $3.5 million, which was exceptionally low due to
the timing of litigation events.
Safe Harbor Statement
This document 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. 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; 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 pending acquisition by DigitalOptics Corporation of
Flextronics’s camera module business 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
DigitalOptics Corporation 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 DigitalOptics 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 March 31, 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, Inc.
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 information call 1.408.321.6000 or go to 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.