- Tessera to Hold Conference Call before Market Open on March 2, 2012 -
SAN JOSE, Calif.--(BUSINESS WIRE)--
Tessera Technologies, Inc. (NASDAQ:TSRA) (the "Company") announced that
its Board of Directors has approved a policy of paying a quarterly cash
dividend of $0.10 per share of common stock, commencing with a dividend
payable on June 14, 2012 to stockholders of record at the close of
business on May 24, 2012. The Company also announced financial guidance
for the first quarter ending March 31, 2012.
"The initiation of a quarterly dividend reflects the Board's confidence
that the Company has sufficient capital resources in the near term, and
confidence in the Company's long-term growth prospects," said Robert A.
Young, president and chief executive officer, Tessera Technologies, Inc.
In establishing the initial level of the regular quarterly dividend, the
Board of Directors considered the Company's current cash balance, its
expected current and future operating performance, expected future needs
for cash to grow its businesses and future prospects to generate cash.
The Board will review the Company's dividend policy from time to time,
including the appropriateness of special dividends or other changes in
its fixed dividend policy.
First Quarter 2012 Guidance
First quarter 2012 total revenue is expected to range between $46.5
million and $47.5 million, which is down approximately 16% to 18% from
the prior quarter. First quarter 2012 revenue from the Intellectual
Property segment is expected to range between $39.0 million and $39.5
million, reflecting lower reported unit volumes of the Company's
licensees that served the DRAM and wireless markets in the fourth
quarter of 2011. For the DigitalOptics segment, revenue is expected to
be in the range of $7.5 million to $8.0 million, comprising royalties
and license fees of approximately $4.0 million and products and services
of approximately $3.5 million to $4.0 million.
Non-GAAP operating expenses for the first quarter 2012, excluding
litigation expenses, are expected to range between $42.0 million and
$43.0 million, an increase of approximately 11% to 14% from the prior
quarter, due primarily to expenses related to the Company's proxy
activities and the acquisition of the assets of a camera module business
from Flextronics International Ltd.
GAAP operating expenses for the first quarter 2012, excluding litigation
expense, are expected to range between $54.1 million and $55.3 million.
Included in the GAAP operating expenses are stock-based compensation,
which is expected to range between $5.4 million and $5.6 million, and
amortization, which is expected to be approximately $6.7 million.
Litigation expense in the first quarter of 2012, which is primarily
associated with the Intellectual Property segment, is expected to be
approximately flat compared to the fourth quarter 2011 expense of $7.1
Conference Call Information
Tessera will hold a conference call today at 5:00 A.M. Pacific (8:00
A.M. Eastern) to discuss this morning's announcement. To access the call
in the U.S., please dial 877-290-8631, and for international callers
dial 706-643-3789 approximately 10 minutes prior to the start of the
conference call. The conference call will also be broadcast live over
the Internet and available for replay for 90 days at www.tessera.com.
In addition, a replay of the call will be available via telephone for
two business days, beginning two hours after the call. To listen to the
telephone replay in the U.S., please dial 855-859-2056 and for
international callers, dial 404-537-3406. Enter access code 56640601.
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; future dividend plans; the sufficiency of
the Company's capital resources; long-term growth prospects; and its
future operating performance, needs for cash and prospects to generate
cash. 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; delays,
setbacks or losses relating to the Company's intellectual property or
intellectual property litigations, or any 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 adopt
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 ("DOC") 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 DOC 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, 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 and reconciliations to those
financial measures 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
Michael Anthofer, 408-321-6711
EVP and CFO
Sr. Director, Investor Relations
Source: Tessera Technologies, Inc.
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