Tessera Technologies, Inc.
) declared that its subsidiaries Tessera, Inc. and Invensas Corp.
have entered into new patent license agreements with Samsung.
However, the specific terms and conditions of the agreements have
been kept confidential.
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Tessera Technologies is a San Jose, CA-based technology company,
which develops licenses and delivers innovative miniaturization
technologies and products for electronic devices worldwide. Since
the sale of 200-odd patents and applications from its
DigitalOptics business, the company has become more of a patent
Tessera, Inc., one of its subsidiaries, is a semiconductor
packaging company whereas Invensas Corp. devises solutions for
With this agreement, Tessera aims to strengthen its existing
relationship with Samsung. Considering Samsung's market position
and growth prospects, the extended relationship with this
consumer electronics company should be very good for Tessera.
While the exact impact on revenue remains under wraps, we may
expect a nice increase.
Tessera's largest segment was always Intellectual Property, but
given its size, the company faced great difficulty protecting its
patents from much larger players with deeper pockets because they
could afford lengthy and expensive litigation. This led the
company to manufacture devices based on its own technology. This
naturally came with its own challenges, in addition to lower
Tessera's present transition to a patent-licensing model is
largely creditable to its largest shareholder, Starboard Value
LP. Starboard is something of a veteran at monetizing patent
assets, which is leading to the current changes at Tessera.
Earlier this month, Tessera announced that it would stop its
operations at its DigitalOptics business and concentrate on its
intellectual property division. It also intends to reduce
Tessera currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks from the same sector include
Ultra Clean Holdings Inc.
Arris Enterprises, Inc.
), both carrying a Zacks Rank #1 (Strong Buy), and,
Aspen Technology, Inc.
) with a Zacks Rank #2 (Buy).