![]() Tessera’s premium imaging technology continues to see interest thereby indicating that the business will grow significantly in the mobile and adjacent markets. The acquisition will make Tessera one of the leading product and technology licensing companies globally. It will also try to maintain an optimum level of free cash flow available for funding quarterly dividends, paying debts, making investments and financing future acquisitions. The combined company will keep its balance sheet strong by maintaining pro forma cash and investments of around $100 million. Revenue synergies are expected to be achieved once the combined company reaches an optimum level of customer channel and technology utilization and expands addressable markets. which was acquired in last December is well on track. Tessera has intensified its Invensas, FotoNation and IP licensing efforts and is currently working with a number of semiconductor manufacturers and OSATs to enhance its portfolio of advanced packaging and interconnect technologies that encompass ZiBond, Direct Bond Interface (DBI) bonding technologies and BVA.Īlso, the integration of DTI Inc. Tessera posted weak fourth-quarter results with both the bottom line and the top line figures missing the Zacks Consensus Estimate. ![]() The Zacks Consensus Estimate is pegged at $2.15. Currently, the Zacks Consensus Estimate is pegged at 50 cents.įor 2017, the company expects revenues in the range of $370 million–$445 million. GAAP loss per share is expected between (53) cents and (48) cents, and non-GAAP loss per share are projected within (15)–(9) cents. Further, management declared a cash dividend of 20 cents per share for the fourth quarter, payable on to stockholders on record as on Mar 1.įor the first quarter of 2017, Tessera expects revenues in the range of $60 million–$63 million. Tessera spent $39.2 million on cash dividends and $67.7 million on share repurchases in the reported quarter. The decline was due to the amount spent on share repurchases, dividends and cash paid in connection with the acquisition of DTS in the fourth quarter.Īlso, as a result of the acquisition, Tessera has $600 million in debt as of Dec 31, 2016. On a GAAP basis, net loss was ($9.3) million or a loss of 19 cents per share compared with net earnings of $22.8 million or of 44 cents in fourth-quarter 2015.Īt quarter end, cash, cash equivalents and short-term investments were $113.0 million, down $283.3 million from the prior quarter. ![]() Pro forma net income was $15.6 million or earnings of 32 cents a share compared with $26.1 million or 53 cents in the prior quarter and $27.3 million or 53 cents in the year-ago quarter. Also, as a percentage of sales, both the expenses increased on a year-over-year basis. Tessera’s operating expenses (research, development and other related costs & selling, general and administrative) were $53.1 million, up 179.8% year over year. Accordingly, Tessera’s fourth-quarter gross margin was 99.55%, down 29 basis points from 99.84% reported in the previous quarter. Owing to the high percentage of licensing revenues, Tessera usually generates strong gross margins. The decrease was partially due to the timing of the execution of an agreement which was signed in early first quarter of 2017. However, revenues were below the Zacks Consensus estimate of $70.1 million and came in at the lower end of the company’s guidance range of $70–$74 million. Tessera’s revenues of $70.1 million were up 12.3% sequentially and 13.4% year over year. The company will also have a new corporate logo and brand platform. While the industry gained 27.66%, the stock generated a loss of 2.13%.ĭuring the call, Tessera announced that it will change its company name to Xperi Corporation and will trade under the ticker symbol XPER on the Nasdaq, effective February 23. Over the past year, shares of Tessera Technologies underperformed the Zacks categorized Electronics Manufacturing Machinery industry. Also, revenues of $70 million missed the consensus mark.įollowing the weak earnings release, the leading chip packaging and interconnect solutions provider shares slipped more than 13% in the after-hours trading. Tessera Technologies renamed as Xperi Corporation ( XPER Quick Quote XPER - Free Report) reported fourth-quarter adjusted earnings of 32 cents per share, missing the Zacks Consensus Estimate by 25 cents.
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