SAN JOSE, Calif., Mar 01, 2010 (BUSINESS WIRE) -- Tessera Technologies, Inc. (Nasdaq:TSRA) announced that its
semiconductor packaging subsidiary, Tessera, Inc., has signed an updated
technology licensing agreement with United Test and Assembly Center Ltd
(UTAC), an independent provider of test and assembly services for a wide
range of semiconductor devices. The initial term of the updated license
agreement runs through the end of 2016. UTAC has the option to renew the
license for an additional five year term.
Among other consideration to Tessera, under the terms of the agreement
UTAC will pay $15.0 million in cash to address past royalties owed under
the initial license. Tessera will receive three separate payments, the
first of which will occur in the first quarter of 2010 with the
remainder in the second half of 2010. As a result of this initial
payment, Tessera is raising its first quarter 2010 total revenue
guidance range to be between $63.0 million and $64.0 million. This
compares to previous first quarter 2010 total revenue guidance given on
January 28, 2010, of between $58.0 million and $61.0 million.
The updated license agreement and payment for past royalties resolves
all outstanding litigation between the companies, settling the parties'
pending action in the Superior Court of the State of California (Alameda
County).
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 UTAC's
use of Tessera's technology, UTAC's option to renew the license, the
payment and receipt of amounts due to Tessera, the extent and duration
of enablement by Tessera's technology, and industry and technology
trends. Material factors that may cause results to differ from the
statements made include delays, setbacks or losses relating to our
intellectual property or intellectual property litigations, or any
invalidation or limitation of our key patents; fluctuations in our
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 our ability to protect
our intellectual property; the risk of a decline in demand for
semiconductor products; failure by the industry to adopt our
technologies; competing technologies; the future expiration of our
patents; the future expiration of our license agreements and the
cessation of related royalty income; the failure or refusal of licensees
to pay royalties; failure to achieve the growth prospects and synergies
expected from acquisition transactions; and delays and challenges
associated with integrating acquired companies with our existing
businesses. You are cautioned not to place undue reliance on the
forward-looking statements, which speak only as of the date of this
release. Tessera's filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K for the year ended Dec. 31,
2009, include more information about factors that could affect the
company's financial results. Tessera assumes no obligation to update
information contained in this press release. Although this release may
remain available on Tessera's website or elsewhere, its continued
availability does not indicate that Tessera is reaffirming or confirming
any of the information contained herein.
About Tessera
Tessera Technologies, Inc. invests in, licenses and delivers innovative
miniaturization technologies for next-generation electronic devices. The
company's micro-electronics solutions enable smaller,
higher-functionality devices through chip-scale, 3D and wafer-level
packaging technology, as well as high-density substrate and silent air
cooling technology. Tessera's imaging and optics solutions provide
low-cost, high-quality camera functionality in electronic products and
include image sensor packaging, wafer-level optics and image enhancement
intellectual property. The company also offers customized micro-optic
lenses, from diffractive and refractive optical elements to integrated
micro-optical subassemblies. Tessera licenses its technologies, as well
as delivers products based on these technologies, to promote the
development of the supply chain infrastructure. The company is
headquartered in San Jose, California. For information call
1.408.321.6000 or go to www.tessera.com.
Tessera and the Tessera logo are trademarks or registered trademarks of
Tessera, Inc. or its affiliated companies in the United States and other
countries. All other company, brand and product names may be trademarks
or registered trademarks of their respective companies.
TSRA-G
SOURCE: Tessera Technologies, Inc.
For Tessera Technologies, Inc.
Company Contact:
Michael Anthofer, 408-321-6711
Chief Financial Officer
or
Investor Relations Contact:
Moriah Shilton, 408-321-6713
Sr. Director, Investor Relations
Copyright Business Wire 2010