Tessera Tech Swings To Profit, Details Strong Q3 Outlook - Update

(RTTNews) - Tessera Technologies Inc (TSRA) on Monday reported a return to a profit in the second quarter despite a drop in revenue, led by lower operating expenses, while the prior year included a loss from discontinued operations. Both earnings and revenue for the quarter topped Wall Street estimates.

The company provided strong revenue guidance for the third quarter, with Tessera shares up about 4 percent in after-hours trade on the Nasdaq.

Tessera licenses to manufacturers and other implementers, technology in areas such as mobile computing, memory and data storage.

Results reflect ongoing progress in collaborating with customers on a technology basis to sell the value of its solutions, said Tessera CEO Tom Lacey. "Our operational momentum continued into the third quarter with the signing of multi-year patent and technology license agreements with Micron."

The San Jose, California-based company posted quarterly net earnings of $3.8 million or $0.07 per share, compared with a loss of $15.8 million or $0.30 per share last year.

Results for the prior-year quarter included loss from discontinued operation of $13.3 million.

Excluding items, adjusted earnings for the quarter were or $0.19 per share, compared with earnings of $0.13 per share in the prior year.

Revenue for the second quarter slipped to $37.2 million from $46.6 million a year ago. This was due to lower episodic revenue, which is revenue other than revenue payable over at least one year pursuant to a contract.

Analysts projected revenue of $31.4 million for the quarter.

Operating expenses decreased to $36.3 million from $51.3 million last year, mainly on lower selling, general, and litigation costs.

For the third quarter, Tessera anticipates revenue of $92 million to $94 million, while analysts expect $80.65 million.

The company expects full-year recurring revenue of about $140 million.

On Wednesday, Tessera said it entered into new multi-year technology and patent license agreements with Micron Technology (MU), and its shares rallied.

On Monday, Tessera closed at $25.65, up $0.06 or 0.23%, on a volume of 770k shares. In after hours, the stock gained $0.97 or 3.78%, trading at $26.62.