Xperi (XPER)

[NukeJohn]

Tessera Just Lost about 25% of their revenue when Powertech cancelled their license.

http://www.tessera.com/abouttessera/pressroom/Pages/pressroom.aspx?releaseId=688278

We have still not heard anything on the Amkor arbitration, so, I suspect that has not gone well.

Let's hope Tessera can get their new technologies to market before the bottom falls out of revenues, otherwise I think the stock price could revisit the low of Oct 2011 which was around $11. After their split decision at the ITC (where the some of their patents were ruled not infringed by the DRAM manufacturers)...we are starting to see existing customers reneg on paying signed contracts.

One more thing, they promised to announce a camera module design win in the first half of 2012....well, guess what? The first half of 2012 is over and we haven't heard anything about a new tier 1 design win.

From looking at their chart, I think the stock will now have to retest the $13 mark (see line below). If it drops below $13, then I think the $12 becomes support (see other line below).



On top of all this, Tessera has decided not to share any information on their on-going litigation with shareholders. That's hard to comprehend for a company whose lifeblood is royalties, and royalties are closely tied with their on-going litigations.

I'm optimistic about the long term future, but I think things are going to get a lot worse before they get better.

JMHO,

NJ