Quarterly dividend declared.
Tessera Technologies, Inc. (NASDAQ:TSRA) (the "Company" or "we") announced its results for the second quarter ended June 30, 2012.
"We generated $92 million in Intellectual Property revenue in the first half of 2012," stated Robert A. Young, chief executive officer and president, Tessera Technologies, Inc. "We are pleased with the progress we have made to date in our licensing discussions with current and potential customers of our patent portfolios. In addition, Invensas Corporation introduced two new semiconductor packaging technologies in the first half. We are taking key steps toward the commercial adoption of these next-generation technologies.
"Turning to our DigitalOptics segment, in the first half of this year we achieved significant operational milestones toward our goal of becoming a vertically integrated Original Design Manufacturer (ODM), including most recently our acquisition of the Vista Point Technologies camera module manufacturing assets from Flextronics. We are engaged in discussions with multiple Tier One and other mobile phone manufacturers for initial commercial adoption of our MEMS autofocus technology. As discussed previously, we believe growth in our DigitalOptics segment will come from the sale of integrated camera modules using our MEMS autofocus technology to the $9 billion market for mobile phone cameras."
Second Quarter 2012
- Total revenues were $61.4 million.
- Intellectual Property segment revenues were $53.0 million.
- DigitalOptics segment revenues were $8.4 million.
Total revenue for the second quarter of 2012 was $61.4 million, compared to $70.7 million of total revenue in the second quarter of the prior year. Intellectual Property revenue for the second quarter of 2012 was $53.0 million, compared to $60.5 million in the second quarter of the prior year, which included a nonrecurring $1.0 million license fee. The year-over-year decline was primarily due to the timing of the renewed contract with a major DRAM customer which resulted comparatively in lower revenues of $6.1 million and lower unit volumes reported by customers totaling $9.8 million, offset by audit payments in the second quarter of 2012 of approximately $9.4 million.
DigitalOptics revenue for the second quarter of 2012 was $8.4 million, compared to $10.2 million in the second quarter of the prior year. The decrease was due primarily to an Extended Depth of Field (EDoF) customer whose reported units were lower than the prior year and weaker demand for the Company's Micro-Optics products.
Generally accepted accounting principles (GAAP) net loss for the second quarter of 2012 was $409,000, or $0.01 per diluted share, which included non-cash charges of $6.3 million for amortization of acquired intangibles and $5.2 million for stock-based compensation.
Non-GAAP net income for the second quarter of 2012 was $8.3 million or $0.16 per basic share. Non-GAAP net income is defined as income and operating expenses adjusted for acquired intangibles amortization, charges for acquired in-process research and development, stock-based compensation expense, impairment charges on long-lived assets and goodwill, and related tax effects.
Six-month Period Ended June 30, 2012
- Total revenue was $108.1 million.
- Intellectual Property segment revenue was $92.0 million.
- DigitalOptics segment revenue was $16.1 million.
GAAP net loss for the six-month period was $8.5 million, or $0.16 per diluted share. Non-GAAP net income for the six-month period was $8.0 million, or $0.15 per diluted share.
Cash, cash equivalents and investments were $474.8 million at June 30, 2012, a decrease of $15.6 million from March 31, 2012. In the second quarter of 2012, net cash provided by operations was $23.3 million. The Company purchased $1.1 million of intellectual property and $4.6 million of property and equipment in the second quarter of 2012. On June 28, 2012, the Company paid $27.2 million in connection with the Vista Point Technologies acquisition, approximately $7 million of which was deposited with an escrow agent for the second closing of assets. On June 14, 2012, $5.2 million was paid to stockholders of record as of May 24, 2012, for the quarterly $0.10 per common share cash dividend.
Quarterly Cash Dividend
On July 25, 2012, the board of directors declared a cash dividend of $0.10 per share of common stock for the third quarter, payable on Sept.13, 2012, for stockholders of record at the close of business on Aug. 23, 2012.
About Tessera Technologies, Inc.
Tessera Technologies, Inc. is a holding company with operating subsidiaries in two segments: Intellectual Property and DigitalOptics. Our Intellectual Property business generates revenue from patented innovations through license agreements with semiconductor companies and outsourced semiconductor assembly and test companies. Tessera, Inc. pioneered chip-scale packaging solutions for the semiconductor industry. Our DigitalOptics business delivers innovation in imaging and optics with products and capabilities that enable expanded functionality in increasingly smaller devices. Our 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. We also offer 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.