SAN JOSE, Calif.--(BUSINESS WIRE)--
Tessera Technologies, Inc. (the "Company" or "Tessera") (Nasdaq: TSRA)
announced today that it and certain of its subsidiaries filed legal
proceedings for patent infringement in both domestic and international
jurisdictions against Broadcom and, in some cases, against certain of
Broadcom's customers and distributors.
The proceedings are in the United States International Trade Commission,
the U.S. District Court for the District of Delaware, and courts in
Germany and the Netherlands, alleging infringement of a total of eight
patents.
Tessera first reached out to Broadcom several years ago to explore
technical collaboration on semiconductor technology development, and
subsequently to discuss licensing Tessera's intellectual property.
Following a series of in-depth licensing discussions, the parties were
unable to reach a licensing arrangement.
"Today's actions were not taken lightly and are made only after years of
effort to reach a fair and equitable resolution without litigation,"
said Tom Lacey, CEO of Tessera. "At this point, we believe that
litigation is necessary to defend our intellectual property rights. As
we have said in connection with other legal matters, we remain willing
to negotiate a resolution that fairly compensates Tessera and its
shareholders for our valuable intellectual property. However, we are
also fully prepared to proceed through the entirety of the legal
process, and we remain very confident in our ability to achieve a
positive outcome."
Broadcom is not an existing Tessera customer, and as such the
proceedings announced today do not impact Tessera's second quarter
revenue or earnings per share guidance or 2016 full-year revenue
guidance. The Company expects 2016 litigation expense will remain within
its current target operating model based on anticipated case activity
for the remainder of the year.
Tessera researches and develops semiconductor and imaging technology
that is used in billions of electronic devices. Tessera has a broad
portfolio of over 4,000 patent assets protecting its technologies that
it licenses to its customers. The Company is a leader in the fields of
computational imaging and photography, as well as semiconductor
packaging and interconnects. Additional information regarding this
announcement can be found at http://ir.tessera.com.
For more information about Tessera, please visit http://www.tessera.com/.
Conference Call Information
The Company will hold a conference call regarding this announcement at
2:30 PM Pacific (5:30 PM Eastern) on Monday, May 23, 2016. To access the
call in the U.S., please dial (888) 723-9308, and for international
callers dial (615) 489-8916, approximately 10 minutes prior to the start
of the conference call. The conference ID is 18278488. The conference
call will also be broadcast live over the Internet at www.tessera.com
and available for replay for 30 days at www.tessera.com.
In addition, a replay of the call will be available via telephone for
thirty days, beginning six hours after the call. To listen to the
telephone replay in the U.S., please dial (855) 859-2056. International
callers please dial (404) 537-3406. Enter access code 18278488.
About Tessera Technologies, Inc.
Tessera Technologies, Inc., including its Invensas and FotoNation
subsidiaries, licenses technologies and intellectual property to
customers for use in areas such as mobile computing and communications,
memory and data storage, and 3D-IC technologies, among others. Our
technologies include semiconductor packaging and interconnect solutions,
and products and solutions for mobile and computational imaging. For
more information, call +1.408.321.6000 or visit www.tessera.com
Tessera and the Tessera logo, 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 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, particularly with respect to the
Company's proceedings against Broadcom and its affiliates, customers,
and distributors, and the Company's financial guidance and projected
litigation expense for 2016. 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 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, 2015, and its Quarterly Report on Form 10-Q for the
quarter ended Mar. 31, 2016, 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-G
View source version on businesswire.com: http://www.businesswire.com/news/home/20160523006438/en/
Company Contacts:
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
Tessera@tpg-ir.com
Source: Tessera Technologies, Inc.
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