- Pending Litigation To Be Dismissed -
SAN JOSE, Calif.--(BUSINESS WIRE)--
Tessera Technologies, Inc. (NASDAQ: TSRA) (the "Company" or "we")
announced today that its Tessera, Inc. and Invensas Corporation
subsidiaries each entered into new eight-year patent license agreements
with SK hynix Inc.
"We are delighted that these new and broader agreements build on our
long-standing and positive relationship with SK hynix, which has become
the first DRAM manufacturer to reach agreements that give it access to
both our Tessera, Inc. and our Invensas Corporation patent portfolios,"
said Robert A. Young, chief executive officer and president, Tessera
Technologies, Inc. "Multi-year agreements like these benefit our
customers with secure pricing and provide us with running royalties that
fund new innovations."
The companies did not disclose the specific financial terms of the
agreements, under which SK hynix will make a one-time payment and pay
running royalties. The agreement will result in an increase in the
Company's recurring royalty revenues from SK hynix beginning in Q2 2013
because the Company reports royalties one quarter in arrears. The
Company and SK hynix also agreed to dismiss the antitrust lawsuit
pending in California state court. The Company is neither updating its
financial guidance nor providing additional financial guidance in
connection with this milestone.
"Our business is connecting patented ideas to manufacturers, like SK
hynix," said Young. "SK hynix now can make optimal decisions for its
customers with the benefit of licenses to more than 1,200 issued patents
in the Tessera, Inc. and Invensas Corporation portfolios."
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 the
effects and duration of the new agreements with SK hynix, the strength
of the Company's IP business and its patents, and future payments and
running royalties and the funding and value of new innovations. 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; 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
expiration of license agreements and the cessation of related royalty
income; the failure, inability or refusal of licensees to pay royalties;
initiation, delays, setbacks or losses relating to the Company's
intellectual property or intellectual property litigations, or
invalidation or limitation of key patents; the timing and results, which
are not predictable and may vary in any individual proceeding, of any
ICC ruling or award, including in the Amkor arbitration; fluctuations in
operating results due to the timing of new license agreements and
royalties, or due to legal costs; the risk of a decline in demand for
semiconductor and camera module products; failure by the industry to use
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 integration by
DigitalOptics Corporation ("DOC") of its recently acquired camera module
manufacturing facility 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 DOC 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, and its
Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2012,
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.
The Intellectual Property business, comprised of engineering, licensing,
account administration and litigation teams, generates revenue from
manufacturers that use its patented ideas. The DigitalOptics business
delivers innovation in imaging and optics with products and capabilities
that enable expanded functionality in increasingly smaller devices.
DigitalOptics' 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.
DigitalOptics also offers customized micro-optic lenses from diffractive
and refractive optical elements to integrated micro-optical
subassemblies. For more information call 1.408.321.6000 or visit 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.
Tessera Technologies, Inc.
Rick Neely, 408-321-6756
Source: Tessera Technologies, Inc.
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