SAN JOSE, Calif.--(BUSINESS WIRE)--
Tessera Technologies, Inc. (NASDAQ:TSRA) ("Tessera" or the "Company")
announced today that its subsidiary Tessera, Inc. filed a breach of
contract lawsuit in California state court against Toshiba Corporation
("Toshiba"). Tessera, Inc. alleges that Toshiba failed to pay amounts
owed for years under the parties' license agreement and interfered with
Tessera, Inc.'s exercise of its audit rights.
Toshiba and Tessera, Inc. entered into a license agreement in 1999 that
granted Toshiba a license to certain of Tessera, Inc.'s semiconductor
packaging technologies in exchange for royalty payments. For many years,
Toshiba was a significant customer and paid royalties under the license
agreement. In 2011, however, independent auditors found that Toshiba had
not paid all amounts due under the agreement. Toshiba refused to pay the
amounts that the auditors determined to be owed, and then in 2013, while
the parties were attempting to resolve the audit issue, Toshiba
unilaterally stopped paying all royalties. Notwithstanding this dispute,
the agreement remains in full force and effect.
"It is unfortunate that Toshiba, which has been a customer for more than
a decade, has taken this position," said Tessera's CEO Tom Lacey. "We
continue to view litigation as a last resort, but sometimes litigation
is necessary to protect our rights and ensure that our stockholders
receive a fair return on our valuable inventions and intellectual
property. In this instance, despite Tessera's best efforts and attempts
for several years to find a mutually acceptable resolution, we were
unable to reach what we view as a fair agreement with Toshiba to resolve
this dispute. If Toshiba is willing, we remain interested in pursuing a
reasonable and fair settlement for both parties."
Tessera, Inc. filed its complaint in Santa Clara County Superior Court.
The complaint asserts claims for breach of contract, breach of the
implied covenant of good faith and fair dealing, and declaratory relief.
Tessera is making no adjustments to second quarter revenue or earnings
per share guidance, and also maintains its 2015 recurring revenue
guidance. Based on expected case activity for the remainder of the year,
the Company believes 2015 litigation expense will remain below the
mid-point of its current target operating model.
Safe Harbor Statement
This document 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
litigation against Toshiba Corporation and the Company's financial
guidance and expectations with respect to the Company's 2015 litigation
expense. Material factors that may cause results to differ from the
statements made include the plans or operations relating to the
businesses of the Company; 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 litigation matters,
or invalidation or limitation of key patents; 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 semiconductors
and products utilizing FotoNation technologies; 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; 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 due to high concentration in the markets for
semiconductors and related products and smartphone imaging; and the
impact of competing technologies on the demand for the Company's
technologies. 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, 2014, and its Quarterly Report on Form 10-Q for the quarter
ended Mar. 31, 2015, 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., including its Invensas and FotoNation
subsidiaries, generates revenue from licensing our technologies and
intellectual property to customers and others who implement it for use
in areas such as mobile computing and communications, memory and data
storage, and 3DIC technologies, among others. Our technologies include
semiconductor packaging and interconnect solutions, and products and
solutions for mobile and computational imaging, including our FaceToolsTM,
FacePowerTM, FotoSavvyTM, DigitalApertureTM,
LifeFocusTM, face beautification, red-eye removal, High
Dynamic Range, autofocus, panorama, and image stabilization intellectual
property.
For more information call 1.408.321.6000 or visit www.tessera.com.
Tessera, the Tessera logo, Invensas, the Invensas logo, FotoNation, the
FotoNation logo, FaceTools, FacePower, FotoSavvy, DigitalAperture and
LifeFocus 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.
TSRA-L
Tessera Technologies, Inc.
Robert Andersen, 408-321-6779
Executive
Vice President and Chief Financial Officer
- or -
The
Piacente Group | Investor Relations
Don Markley or Glenn Garmont,
212-481-2050
Investor Relations
tessera@tpg-ir.com
Source: Tessera Technologies, Inc.
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