The upcoming results will be the next trigger for the stock. The management guidance for revenues is $35-38 million which indicates that the revenues are likely to fall on a yoy basis. The sale of some Micro-optics assets to FLIR will yield an $15 million. Even in the last quarter the revenues had declined significantly on a yoy basis. Over the years, the revenues have declined, and the losses have increased. Though the digital optics segment is primarily responsible for the operating losses, even the IP segment has not performed that well. The revenues have declined and the profits have also come down. The overall market for monetizing IPRs has done well recently, and several companies have begun to assert their proprietary or acquired patent rights. Spherix (SPEX) recently acquired hundreds of patents and has already filed lawsuits against big companies to enforce its rights. Tessera's bottom-line has been hit by litigation, restructuring and goodwill impairment expenses. Even the R&D expenses, mainly compensation to personnel, have been on the rise. However, things may improve after the spin-off of the manufacturing part of the digital optics segment is complete. This is because a major portion of the operating expenses are attributable to this loss making segment. The exact impact of the expected spin-off will be known over time, and the future numbers will be better if it yields the expected results. Meanwhile, the stock has fallen over the last few months. Despite the correction it is still up 33% over the last 52 weeks. It needs to rebound and cross $20 convincingly so that the uptrend can resume. Ultimately, the upward movement will depend on the financial performance. The spin off may reduce the expenses, but the company needs to find ways to bolster the top line. The god part is that the company has a good amount of cash, and has zero debt.
