Amkor To Pay Tessera $155 Mln To Settle Litigation, Arbitration Proceedings

(RTTNews) - Amkor Technology, Inc. (AMKR) on Thursday announced the settlement of its outstanding litigation and arbitration proceedings with Tessera, Inc. (TSRA).

Under the terms of the settlement, Amkor has agreed to pay Tessera a total of $155 million in equal quarterly installments over the next four years, and the parties have agreed to a mutual release and dismissal of all claims relating to their pending litigation and arbitration proceedings, including the previously awarded judgment of $128.3 million plus interest.

Amkor said it expects to record an after-tax charge in the fourth quarter of 2014 for most of the total settlement amount, net of amounts previously reserved.

Subsequent to the agreement, Tessera raised its 2015 recurring revenue guidance from $195 million to $235 million. Analysts polled by Thomson Reuters currently expect the company to post revenue of $221.37 million for the full year 2015.