"The first quarter of 2012 was an important quarter for the Company. In
our DigitalOptics segment, we met significant milestones in the ongoing
transformation of our DigitalOptics business into an original design
manufacturer with high-volume manufacturing capabilities for
next-generation camera modules," stated
"In our Intellectual Property segment we successfully renewed four licensees in the first quarter, including two well-known Japanese electronics manufacturers.
"We also announced the initiation of a quarterly dividend of
First Quarter 2012
Total revenue for the first quarter of 2012 was
DigitalOptics total revenue was
Generally accepted accounting principles (GAAP) net loss for the first
quarter of 2012 was
Non-GAAP net loss for the first quarter of 2012 was
Balance Sheet
Cash, cash equivalents and investments were
Prepared Remarks and Conference Call Information
Concurrently with the publication of its earnings press release, the Company will post to its website management's prepared remarks regarding the Company's quarterly performance. These prepared remarks are being made available in order to provide the investment community with additional time to analyze the Company's results prior to the conference call. The first quarter 2012 earnings conference call will include brief remarks from management, followed by a Q&A session.
The Company will hold its first quarter 2012 earnings conference call at
2:00
Safe Harbor Statement
This document contains forward-looking statements, which are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve risks
and uncertainties that could cause actual results to differ
significantly from those projected, particularly with respect to the
Company's financial results for the first quarter of 2012; the
transformation of the DigitalOptics business and its ability to become a
high-volume manufacturer of next-generation camera modules, including
for devices using MEMS actuators; the building out of a team, the
development of a supply chain, and the engagement of multiple Tier 1
mobile phone suppliers for the DigitalOptics business; the expected
design win relating to the MEMS actuator; future dividend plans; the
sufficiency of the Company's capital resources; long-term growth
prospects; and the Company's future operating performance, needs for
cash and prospects to generate cash. Material factors that may cause
results to differ from the statements made include the plans or
operations relating to the Company's businesses; market or industry
conditions; the expiration of license agreements and the cessation of
related royalty income; the failure, inability or refusal of licensees
to pay royalties; delays, setbacks or losses relating to the Company's
intellectual property or intellectual property litigations, or any
invalidation or limitation of key patents; fluctuations in operating
results due to the timing of new license agreements and royalties, or
due to legal costs; changes in patent laws, regulation or enforcement,
or other factors that might affect the Company's ability to protect or
realize the value of its intellectual property; the risk of a decline in
demand for semiconductor and camera module products; failure by the
industry to use technologies covered by the Company's patents; the
expiration of the Company's patents; the Company's ability to
successfully complete and integrate acquisitions of businesses,
including the pending acquisition by
About
Tessera,
Non-GAAP Financial Measures
In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company's earnings release contains non-GAAP financial measures adjusted for either one-time or ongoing non-cash acquired intangibles amortization charges, acquired in-process research and development, all forms of stock-based compensation, impairment charges on long-lived assets and goodwill, and related tax effects. The non-GAAP financial measures also exclude the effects of FASB Accounting Standards Codification 718, "Stock Compensation" upon the number of diluted shares used in calculating non-GAAP earnings per share. Management believes that the non-GAAP measures used in this release provide investors with important perspectives into the Company's ongoing business performance. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
Set forth below are reconciliations of non-GAAP net income to the Company's reported GAAP net income.
|
|
||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (in thousands, except per share amounts) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended | ||||||||
|
|
||||||||
| 2012 | 2011 | |||||||
| Revenues: | ||||||||
| Royalty and license fees | $ | 43,264 | $ | 62,258 | ||||
| Product and service revenues | 3,409 | 5,515 | ||||||
| Total revenues | 46,673 | 67,773 | ||||||
| Operating expenses: | ||||||||
| Cost of revenues | 5,760 | 5,512 | ||||||
| Research, development and other related costs | 23,445 | 18,613 | ||||||
| Selling, general and administrative | 24,611 | 19,464 | ||||||
| Litigation expense | 3,492 | 5,996 | ||||||
| Restructuring and other charges | - | 2,059 | ||||||
| Total operating expenses | 57,308 | 51,644 | ||||||
| Operating income (loss) | (10,635 | ) | 16,129 | |||||
| Other income and expense, net | 668 | 608 | ||||||
| Income (loss) before taxes | (9,967 | ) | 16,737 | |||||
| Provision for income taxes | (1,879 | ) | 5,525 | |||||
| Net income (loss) | $ | (8,088 | ) | $ | 11,212 | |||
|
|
||||||||
| Net income (loss) per share - basic | $ | (0.16 | ) | $ | 0.22 | |||
| Net income (loss) per share - diluted | $ | (0.16 | ) | $ | 0.22 | |||
| Cash dividends declared per share | $ | 0.10 | $ | - | ||||
| Weighted average number of shares used in per share | ||||||||
| calculations - basic | 51,738 | 50,823 | ||||||
| Weighted average number of shares used in per share | ||||||||
| calculations - diluted | 51,738 | 51,267 | ||||||
|
|
||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (in thousands) | ||||||||||
|
|
|
|||||||||
| 2012 | 2011* | |||||||||
| (unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 78,913 | $ | 55,758 | ||||||
| Short-term investments | 411,519 | 436,687 | ||||||||
| Accounts receivable, net | 7,920 | 8,599 | ||||||||
| Inventories | 1,635 | 1,574 | ||||||||
| Short-term deferred tax assets | 1,891 | 1,892 | ||||||||
| Other current assets | 15,823 | 13,664 | ||||||||
| Total current assets | 517,701 | 518,174 | ||||||||
| Property and equipment, net | 35,544 | 36,319 | ||||||||
| Intangible assets, net | 135,115 | 141,326 | ||||||||
| Long-term deferred tax assets | 18,223 | 18,223 | ||||||||
| Other assets | 2,345 | 2,484 | ||||||||
| Total assets | $ | 708,928 | $ | 716,526 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 5,408 | $ | 7,203 | ||||||
| Accrued legal fees | 5,897 | 6,110 | ||||||||
| Accrued liabilities | 12,894 | 20,824 | ||||||||
|
Dividend payable |
5,192 | - | ||||||||
| Deferred revenue | 5,145 | 2,610 | ||||||||
| Total current liabilities | 34,536 | 36,747 | ||||||||
| Long-term deferred tax liabilities | 4,083 | 4,083 | ||||||||
| Other long-term liabilities | 5,017 | 5,017 | ||||||||
| Stockholders' equity: | ||||||||||
| Common stock | 52 | 52 | ||||||||
| Additional paid-in capital | 470,331 | 462,697 | ||||||||
| Treasury stock | (10,505 | ) | (10,505 | ) | ||||||
| Accumulated other comprehensive income | 283 | 24 | ||||||||
| Retained earnings | 205,131 | 218,411 | ||||||||
| Total stockholders' equity | 665,292 | 670,679 | ||||||||
| Total liabilities and stockholders' equity | $ | 708,928 | $ | 716,526 | ||||||
| * Derived from audited financial statements | ||||||||||
|
|
|||||||||
| RECONCILIATION TO NON-GAAP INCOME FROM GAAP NET INCOME (LOSS) | |||||||||
| (in thousands, except per share amounts) | |||||||||
| (unaudited) | |||||||||
| Three Months Ended | |||||||||
|
|
|||||||||
| 2012 | 2011 | ||||||||
| GAAP net income (loss) | $ | (8,088 | ) | $ | 11,212 | ||||
| Adjustments to GAAP net income (loss): | |||||||||
| Stock-based compensation - cost of revenues | 150 | 143 | |||||||
| Stock-based compensation - research, development and other related costs | 1,712 | 2,446 | |||||||
| Stock-based compensation - selling, general and administrative | 2,194 | 3,475 | |||||||
| Amortization of acquired intangibles - cost of revenues | 2,016 | 1,707 | |||||||
| Amortization of acquired intangibles - research, development and other related costs | 1,353 | 753 | |||||||
| Amortization of acquired intangibles - selling, general and administrative | 3,004 | 1,632 | |||||||
| Tax adjustments for non-GAAP items | (2,559 | ) | (2,360 | ) | |||||
| Non-GAAP net income (loss) | $ | (218 | ) | $ | 19,008 | ||||
| Non-GAAP net income (loss) per common share - diluted | $ | (0.00 | ) | $ | 0.36 | ||||
| Weighted average number of shares used in per share | |||||||||
| calculations excluding the effects of FAS 123R - diluted | 53,093 | 52,548 | |||||||
|
|
|||||||||
| CONSOLIDATED REVENUE DETAILS | |||||||||
| (in thousands) | |||||||||
| (unaudited) | |||||||||
| Three Months Ended | |||||||||
|
|
|||||||||
| 2012 | 2011 | ||||||||
| Revenues: | |||||||||
| Intellectual Property Segment | |||||||||
| Royalty and license fees | $ | 39,028 | $ | 53,615 | |||||
| Product and service revenues | - | - | |||||||
| Total Intellectual Property revenues | 39,028 | 53,615 | |||||||
| DigitalOptics Segment | |||||||||
| Royalty and license fees | 4,236 | 8,643 | |||||||
| Product and service revenues | 3,409 | 5,515 | |||||||
| Total DigitalOptics revenues | 7,645 | 14,158 | |||||||
| Total revenues | $ | 46,673 | $ | 67,773 | |||||
TSRA - E
Chief Financial Officer
408-321-6756
or
Investor
Relations:
Sr. Director, Communications &
Investor Relations
408-321-6713
Source:
News Provided by Acquire Media
