Xperi (XPER)

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Tessera sees sequential fall in Q1 rev; to cut jobs
Reuters
Jan 27, 2011

(Corrects range of Q1 charge to $2.5-$3.0 mln from $2.5-$3.5 mln. Correction in bullet and text)

* Q4 rev $80.4 mln vs est $77.8 mln

* Q4 adj shr $0.44 vs est $0.27

* Sees Q1 rev $65-$68 mln vs est $72.8 mln

* To cut up to 15 percent global workforce

* To incur $2.5-$3.0 mln charge in Q1

Jan 27 (Reuters) - Chip designer Tessera Technologies Inc (TSRA.O) forecast a sequential fall in first-quarter revenue on sluggish license renewals, and said it plans to cut up to 15 percent of jobs.

Shares of the company were down 8 percent in extended trade.

The San Jose, California-based company, which reported fourth-quarter revenue of $80.4 million, said it expects first-quarter revenue of $65-$68 million.

Analysts on average were expecting $72.8 million in first quarter revenue, according to Thomson Reuters I/B/E/S.

"Five licensees or former licensees are either in breach or have not yet renewed," it said.

The company also announced that it will downsize 15 percent of its workforce to save costs, and incur a $2.5-$3.0 million charge in the first quarter.

Tessera had 416 workers as on Jan. 31 last year, according to its latest annual filing.

For the fourth quarter, the company earned $13.5 million, or 27 cents a share. Excluding items, it earned 44 cents a share, while analysts were looking for 27 cents.

Tessera is currently in litigation with Qualcomm Inc (QCOM.O), Spansion Inc (CODE.N), Freescale Semiconductor Inc [FSLSM.UL], ATI Technologies and STMicroelectronics NV (STM.PA) in a chip patent dispute. [ID:nN21255111]

Shares of the company were down 8 percent in extended trading at $19.50. They closed at $21.21 on Thursday on Nasdaq.

http://www.reuters.com/article/2011/01/28/tessera-idUSSGE70Q0ET20110128?feedType=RSS&feedName=technologySector&rpc=43