Tessera Raises 2015 Recurring Revenue Guidance to $235 Million
SAN JOSE, Calif.--(BUSINESS WIRE)--
Tessera Technologies, Inc. (NASDAQ:TSRA) ("Tessera" or the "Company")
today announced that its subsidiary, Tessera, Inc., has entered into an
agreement with Amkor Technology, Inc. ("Amkor") to settle all pending
litigation between Amkor and Tessera, Inc. Under the terms of the
agreement, Amkor will pay Tessera a total of $155 million, comprised of
sixteen equal quarterly recurring payments commencing in the first
quarter of 2015, and continuing through the fourth quarter of 2018. This
settlement includes the resolution of the previously awarded judgment of
$128.3 million plus interest, as well as additional amounts related to
the settlement of other proceedings.
"We are extremely pleased to have reached this settlement agreement with
Amkor," said Tom Lacey, CEO of Tessera. "This settlement puts our
disputes behind us, and opens the door for Amkor and Tessera to have
technical collaboration discussions on advanced packaging technologies.
We look forward to finding ways to deliver value to the semiconductor
industry through innovation and collaboration with one of the world's
leading semiconductor packaging companies."
"Amkor is also pleased to have reached a settlement with Tessera," said
Steve Kelley, President and CEO of Amkor. "Amkor is a world leader in
semiconductor packaging, and we look forward to exploring opportunities
for technology engagement with Tessera that may provide a long-term
benefit to our customers and our shareholders."
Subsequent to this agreement, Tessera is raising its 2015 recurring
revenue guidance from $195 million to $235 million.
About Tessera Technologies, Inc.
Tessera Technologies, Inc. and its subsidiaries generate revenue from
licensing to manufacturers and other implementers that use the Company's
technology in areas such as mobile computing and communications, memory
and data storage, and 3-D Integrated Circuit technologies. For more
information call 1.408.321.6000 or visit www.tessera.com.
Tessera, the Tessera logo, FotoNation, the FotoNation logo 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.
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
settlement agreement with Amkor and the potential technical
collaborations between the companies. Material factors that may cause
results to differ from the statements made include the plans or
operations relating to the businesses of Tessera Technologies, Inc. (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 intellectual property litigations, 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, 2013, and its Quarterly Report on Form 10-Q for the quarter
ended Sept. 30, 2014, 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.
TSRA-L
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Tessera Technologies, Inc.
Robert Andersen, 408-321-6779
Executive
Vice President and Chief Financial Officer
or
The Piacente
Group | Investor Relations
Don Markley, 212-481-2050
Glenn
Garmont, 212-481-2050
Investor Relations
tessera@tpg-ir.com
Source: Tessera Technologies, Inc.
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