SAN JOSE, Calif., Nov 01, 2005 (BUSINESS WIRE) -- Tessera Technologies, Inc. (Nasdaq:TSRA):
-- Tessera Expands Core Markets to Include Packaging for Image
Sensors and MEMS Devices, a 7.3 Billion Unit Market by 2009
-- Tessera Broadens Product Portfolio with Wafer-Level Packaging
Technologies Already Adopted in High-Volume Camera Phone
-- Tessera Establishes A Center of Excellence in Wafer-Level
Tessera Technologies, Inc. (Nasdaq:TSRA), a leading provider of
miniaturization technologies for the electronics industry, today
announced that it has entered into a definitive agreement to purchase
certain assets of Shellcase Ltd. Shellcase is the world's leading
provider of commercially available wafer level image sensor packaging
technology. Shellcase's broad technology portfolio includes
wafer-level packaging for image sensors and other devices. The world's
largest cellular phone manufacturers utilize image sensors packaged in
Shellcase technology for cellular phones that integrate highly
reliable, miniaturized digital cameras.
Under the terms of the agreement, Tessera will pay approximately
$33 million in cash for certain assets of Shellcase. This transaction
is subject to various standard closing conditions, including
applicable regulatory approvals. The transaction is expected to close
in the fourth quarter of 2005.
"Tessera is one of the world's leading technology development and
licensing companies. This, in combination with the Shellcase
technology and team, will enable us to grow the new business
substantially," said Bruce McWilliams, Tessera's chairman and chief
executive officer. "Furthermore, it solidifies our position in the
wafer-level packaging market for image sensors and MEMS devices, which
we believe to be among the semiconductor industry's fastest growing
"We are creating a center of excellence whose charter is to
develop next-generation wafer-level packaging technologies for fast
growing markets," continued McWilliams. "We are excited to be adding
this world-class team to our company."
According to Prismark, the image sensor market is expected to grow
from approximately 520 million units in 2004 to approximately 1.3
billion units by 2009. Tessera anticipates the rate of adoption of
Shellcase's technology will outpace the growth of the market as a
whole. As the image quality requirements of cameras continue to
increase, Shellcase's technology provides a compelling solution to
meet the industry's quality and cost challenges. According to
Prismark, in 2004, approximately 80 million image sensors were
packaged in Shellcase's technology. Prismark projects this number to
reach 115 million units by year end, a 44 percent growth rate over
The MEMS market is an emerging market with high packaging costs
that can be substantially reduced by Shellcase's technology. According
to In-Stat, the MEMS market is expected to grow from 2.4 billion
units in 2004 to nearly 6 billion units by 2009. As a result of this
transaction, Tessera will be positioned to address this large growth
Shellcase is headquartered in Jerusalem, Israel, and was founded
in 1994. Tessera's management team will discuss additional details of
the Shellcase transaction in today's earnings conference call at 1:30
P.M. Pacific (4:30 P.M. Eastern). To access the call in the U.S.,
please dial 877-866-5534, and for international callers dial
706-679-0753 approximately 10 minutes prior to the start of the
conference call. The conference call will also be broadcast live over
the Internet and available for replay for 90 days at www.tessera.com.
In addition, a replay of the call will be available via telephone for
2 business days, beginning two hours after the call. To listen to the
telephone replay in the U.S., please dial 800-642-1687 and for
international callers, dial 706-645-9291. Enter access code 1242007.
About Shellcase Ltd.
Shellcase is a leading global supplier of wafer-level electronic
product miniaturization technologies for the growing digital imaging
market. Shellcase's patented wafer-level chip size packaging (WLCSP)
technology enables packaging solutions that are miniature, reliable
and low cost, thereby exponentially increasing board capacity and
functionality for the next generation of smaller, more advanced
electronics devices. The company licenses its advanced WLCSP
technologies -- ShellOP(TM), ShellOC(TM), ShellUT(TM) and ShellCF(TM)
-- to integrated circuit manufacturers and module makers worldwide.
Founded in 1994, the company is headquartered in Jerusalem, Israel.
For more information, please visit www.shellcase.com.
About Tessera Technologies, 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 June 30, 2005, include more information about
factors that could affect the company's financial results.
Note: Tessera, MicroBGA, Compliant Chip, MicroZ and the Tessera
logo are registered trademarks 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 or Mike Forman, 408-894-0700
Joyce Smaragdis, 408-952-4317
Lippert/Heilshorn & Associates
Kirsten Chapman or Moriah Shilton, 415-433-3777