SAN JOSE, Calif., Jun 08, 2005 (BUSINESS WIRE) -- Tessera Technologies, Inc. (Nasdaq:TSRA), a leading
provider of miniaturization technologies for the electronics industry,
today announced that it is raising its financial guidance for the
second quarter and full year of 2005.
Tessera is increasing its projected second quarter 2005 Total
Revenue guidance to now range between $21.3 million to $21.7 million,
as compared to previous guidance given on April 21st of $16.5 million
to $17.0 million. Included in this revised guidance is approximately
$5.0 million of Other Intellectual Property Revenue representing
payments for past production. The expense guidance range has changed
to be approximately $11.0 million from $10.7 million to $11.0 million
given on April 21st, while the company's cash tax guidance is expected
to range from six to seven percent of revenue as compared to previous
guidance of three to four percent of revenue. The increased tax rate
relates to the sources of the increased revenue. The company's
projected book tax rate of 36 percent is unchanged from previous
Tessera is also updating its projected annual 2005 Total Revenue
guidance to now range between $92 million and $94 million, as compared
to previous guidance of $89 million to $91 million. Annual expense
guidance of $46 million to $47 million is unchanged, while cash tax
guidance is expected to range from four to five percent of revenue, as
compared to previous guidance of three to four percent. Third quarter
guidance, when issued, will only include revenue from agreements
signed at that time, according to Tessera's established process for
Bruce McWilliams, Tessera's chairman and chief executive officer,
said, "We are revising our second quarter and full year guidance
upwards based upon larger than expected payments from existing
customers for past production, as well as better than expected royalty
payments in the second quarter. The increase in our revenue guidance
is partially offset by lower Product Development Services Revenue,
which we expect to be down slightly sequentially from the first
quarter, as it is taking us longer than expected to complete some
customer funded technical development programs, but long term we see
this business continuing to grow. The results speak to the ongoing
adoption of Tessera's technology by the market, and the past
production payments reflect the prevalence of Tessera's technology in
Tessera's Total Revenue consists of IP, Other IP, and Product
Development Services Revenue.
-- Total IP Revenue includes IP Revenue and Other IP Revenue.
-- IP Revenue consists of royalties and one-time licensing fees
from new customers.
-- Other IP Revenue represents payments for products manufactured
in past periods.
About Tessera, Inc.
Tessera Technologies, through its wholly-owned subsidiary Tessera,
Inc., is a leading provider of miniaturization technologies for the
electronics industry. Tessera enables new levels of miniaturization
and performance by applying its unique expertise in the electrical,
thermal and mechanical properties of materials and interconnect. As a
result, Tessera's technologies are widely adopted in high-growth
markets including consumer, computing, communications, medical and
defense. Tessera's customers include the world's top semiconductor
companies such as Intel, Samsung, Renesas, Toshiba and Texas
Instruments. The company's stock is traded on the Nasdaq National
Market under the symbol TSRA. Tessera is headquartered in San Jose,
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. Factors that might cause or
contribute to such differences include, but are not limited to,
fluctuations in Tessera's operating results due to the timing of new
license agreements and royalties, Tessera's ability to protect its
intellectual property and the risk of a decline in demand for
semiconductor products. You are cautioned not to place undue reliance
on the forward-looking statements, which speak only as of the date of
this release. Tessera's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year
ended December 31, 2004, and its Quarterly Report on Form 10-Q filed
for the quarter ended March 31, 2005 include more information about
factors that could affect the company's financial results.
Note: Tessera, MicroBGA, Compliant Chip and the Tessera logo are
registered trademarks and MicroZ is a trademark of Tessera, Inc. All
other company, brand and product names may be trademarks or registered
trademarks of their respective companies.
SOURCE: Tessera Technologies, Inc.
Tessera Technologies, Inc.
Doug Norby/Mike Forman, 408-894-0700
Lippert/Heilshorn & Associates
Moriah Shilton/Kirsten Chapman, 415-433-3777