Chip technology developer,
Tessera Technologies Inc.
) has provided its guidance for the third quarter ending September
30, 2012. Following the news, the company's shares rose 4.36% in
extended trading hours.
Tessera expects revenue in the range of $66.5 million to $69.0
million, up 8% to 12% from the prior quarter. Revenue from
segment is expected to be $53.0-$54.0 billion, which includes
approximately $20.0 million received from favorable rulings related
to its dispute with
Amkor Technology, Inc
segment revenue is expected to be $13.5-$15.0 million, comprising
royalties and license fees of $2.0 to $2.5 million, and products
and services revenue of $11.5 million to $12.5 million.
Tessera remains optimistic about revenue coming from the renewal
of licensing contracts as it has been scoring legal wins in recent
times, and expects other big companies to renew their licenses
going forward. In the last quarter, Tessera announced that its
wholly-owned subsidiary Invensas introduced two new packaging
technologies that were in the process of commercialization. The
company is also developing other licensable technology beyond the
traditional packaging area that would translate to additional
revenue going forward.
side, Tessera has been seeing some success with its new MEMS lens
subassembly. The segment has transitioned from an imaging and
optics focus to an original design manufacturer (ODM) of camera
modules for the mobile phone market. Since the camera module
business is yet to take off, Tessera expects volume shipments in
the December quarter.
Other guidance included non-GAAP operating expenses of
$57.0-$59.0 million and GAAP operating expenses of $67.0-$71.0
million, including stock-based compensation in the range of $4.0 to
$5.0 million and amortization expense of $6.0 to $7.0 million.
Litigation expense is expected to be significantly higher than the
$6.7 million reported in the second quarter owing to increased
activity in ongoing cases.
Tessera is a provider of back-end technology for semiconductor
manufacturing. The company has a strong balance sheet, with $474.8
million in cash and short-term investments and no debt. The
company's financial strength allows it to invest in attractive
growth opportunities through the economic cycle. However, the
company continues to be impacted by pricing pressures in the
sluggish dynamic random access memory (DRAM) market.
Currently, Tessera has a Zacks #3 Rank, which implies a Hold
rating in the short term (1-3 months).
AMKOR TECH INC (AMKR): Free Stock Analysis
TESSERA TEC INC (TSRA): Free Stock Analysis
To read this article on Zacks.com click here.