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Tessera Technologies, Inc. (TSRA)
Q2 2010 Earnings Call Transcript
July 29, 2010 5:00 pm ET
Moriah Shilton – IR
Hank Nothhaft – President, CEO & Chairman
Mike Anthofer – EVP & CFO
Brian Marcucci – SVP, Business Development & Licensing, Micro-Electronics
Barney Cassidy – EVP& General Counsel
Paul Thomas – BoA/Merrill Lynch
Simran Brar [ph] – Cowen
Olga Levinzon – Barclays Capital
Michael Cohen – MDC Financial Services
Kevin Vassily – Pacific Crest Securities
Previous Statements by TSRA
» Tessera Technologies Inc. Q1 2010 Earnings Call Transcript
» Tessera Technologies, Inc. Q4 2009 Earnings Call Transcript
» Tessera Technologies, Inc. Q2 2009 Earnings Call Transcript
Thank you, Dawn, and good afternoon, everyone. Thank you for joining us for the Tessera Technologies Second Quarter 2010 Results Conference Call. This call is being broadcast live over the internet. A webcast replay will be available at tessera.com for 90 days after the call.
In addition a telephone replay of this call will be made available for two business days beginning approximately two hours after the completion of this call. To listen to the replay in the U.S., please dial 800-642-1687 and internationally dial 706-645-9291. The access code is 87257605.
I will now read a short Safe Harbor statement. During the course of this conference call, management will make a number of forward-looking statements, which are statements regarding future events, including the future financial performance of the company. These forward-looking statements 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. You’re cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this call.
More information about factors that may cause results to differ from the projections made in these forward-looking statements can be found in Tessera’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year-ended December 31, 2009, and its quarterly report on Form 10-Q for the period ended March 31, 2010, especially in the sections of these filings and titled “Risk Factors.”
The company disclaims any obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur after this call.
On the call today from management are Hank Nothhaft, Tessera’s Chairman and Chief Executive Officer; Mike Anthofer, Chief Financial Officer; Barney Cassidy, General Counsel, Mike Bereziuk, Executive Vice President, Imaging and Optics and Brian Marcucci, Senior Vice President, Business Development and Licensing Micro-electronics.
During this call today, management will discuss certain non-GAAP financial measures for comparison purposes only. The non-GAAP amounts of cost of revenues, research and development, selling, general and administrative expenses, net income and earnings per share do not include the following, stock-based compensations, acquired intangibles’ amortization charges, acquired in-process research and development and related tax effects.
Management believes the non-GAAP amounts provide a more meaningful comparison of quarter-over-quarter and year-over-year financial performance. Please refer to the company’s second quarter 2010 earnings press release and to the company’s Website for a reconciliation of non-GAAP measures to GAAP.
After management’s brief opening remarks, we will open the call to your questions.
And now, I’ll turn the call over to Hank.
Thank you, Moriah. Good afternoon. And welcome to Tessera’s quarterly earnings call. Starting today, we are following a different approach for our earnings call posting prepared remarks ahead of the call to provide our investment committee with additional time to analyze our results prior to the actual conference call. I will offer very brief remarks and then open the call for your questions.
We had an excellent quarter. In fact, it was the best quarter of revenue excluding settlements in our history. Today, total revenue for the second quarter of 2010 was $74.6 million, up 20% from the second quarter of 2009. We took steps in the second quarter of 2010 to further our growth with our acquisition of Siimpel, the developer and manufacturer of Micro Electro Mechanical Systems or MEMS based camera solutions or mobile imaging application. As a result of this acquisition we now address a wider spectrum of the camera module market.
Long-term based upon the strength of our technologies and the expanded market opportunities we see before us we believe Tessera will play an important role in the anticipated multibillion unit Imaging & Optics market.
Our Micro-electronics business continues to grow reflecting the strength of our served DRAM and mobile wireless markets. Given our active licensing program, we are devoting both manpower and dollars to support it and overall are confident in the opportunities that will provide. We are excited about our future in our long-term growth and I look forward to reporting on our successes in the future.
I now would like to turn the call over for questions so I will turn it back to the operator. Don?
(Operator instructions) Your first question comes from the line of Krish Sankar with BoA/Merrill Lynch.
Paul Thomas – BoA/Merrill Lynch
Good afternoon. Thanks for taking my questions. This is Paul Thomas for Krish Sankar. Hank, I guess under the new format I have a question sort of along those lines. I think before you talked about your revenue forecasting that you get updates 30 days and 60 days after the quarter. And then your Q2 pre-announcement came, sort of seems like more than 60 days after the quarter. So is this a more normal process we should expect now that maybe we might get some update at the midpoint of the quarter on how the quarter is shaping up, or has anything else changed about how you guys put together your guidance?