Xperi (XPER)

[NukeJohn]

Tessera's Prepared Remarks from the last CC

You might note the company has almost $11/share in cash and the only reasons they had a loss last year was because of a goodwill impairment charge of about $50 Million associated with their stock price temporarily dropping below book value

http://files.shareholder.com/downloads/TSRA/1652186430x0x537029/A7407A21-7850-4659-9B59-7B70AD301699/Q4_2011_Prepared_Remarks_Final.pdf

some key excerpts from their last CC prepared statement....

The Company had a GAAP net loss of $19.3 million, or ($0.38) per basic share for 2011, which included a third quarter goodwill impairment charge of $49.7 million, all of which related to the DigitalOptics segment. Non-GAAP net income was $60.7 million, or $1.15 per diluted share.

In 2011, Invensas launched xFD. xFD is a patented semiconductor packaging technology that reduces packaging costs, improves the performance of memory packages containing multiple face down die, and provides system manufacturers the opportunity to use less costly printed circuit board technologies. xFD is an example of a technology that may be adopted in the near term for use in the DRAM memory stacking space. In October 2011, Invensas announced NANIUM S.A. was the first company offering an implementation of Invensas’s xFD packaging technology in volume. Invensas is working with system manufacturers, memory chip manufacturers and assembly and test companies to speed adoption of xFD technology.

The DigitalOptics segment offers products that include licensable image processing technologies such as auto-focus, zoom, red-eye correction, face tracking, smile and blink detection, which are in nearly 90% of all digital still cameras in the market today and are embedded in mobile phones from six of the top ten OEMs. DOC is taking this proven technology and transitioning these components into the mobile imaging market. It is also on track in 2012 to deliver its latest component, a Micro Electro Mechanical Systems (MEMS) auto-focus actuator.

DigitalOptics MEMS technology has met and exceeds the performance and reliability requirements based on test criteria from multiple Tier 1 mobile phone makers and DOC is working on the supply chain to support the anticipated high volume production. DOC expects a design win for its MEMS Auto-Focus in the first half of 2012, with revenue starting in the fourth quarter of 2012. This is a $1 billion market opportunity, with a current incumbent technology called Voice Coil Motor (VCM) that we believe MEMS will replace because of its multi-faceted technical superiority to VCM. MEMS has a smaller footprint and is thinner than VCM; has 7x faster auto-focus time; consumes 1/300th of the power; and has significantly more precise and continuous auto-focus, required for optimal video on mobile phones.

The MEMS auto-focus actuator is just one component of the larger camera module, however. The camera module’s primary components are image sensor, lens, lens barrel, algorithms, etc. DOC has many of these components, protected by high value IP and differentiated by multiple breakthrough technological features. The next step in DOC’s vision of bringing the DOC ‘standard’ to the mobile imaging market is to become a vertically integrated camera module supplier, either through partnerships, contract manufacturing, or becoming a manufacturer itself. As a vertically integrated provider, DOC will be able to effectively compete in the camera module business, which today is a highly fragmented commodity market worth $9 billion. DOC anticipates being able to provide integrated camera modules starting in 2013.