EXHIBIT 99.1
Company Contact:
Michael Anthofer
EVP and CFO
408-321-6711
Investor Relations Contact:
Moriah Shilton
Investor Relations
408-321-6713
Tessera AND UTAC Sign UPDATED Technology Licensing Agreement
Tessera Raises First Quarter 2010 Total Revenue Guidance to Be Between $63.0 Million and $64.0 Million
San Jose, Calif., March 1, 2010 - Tessera Technologies, Inc. (Nasdaq: TSRA)announced that its semiconductor packaging subsidiary, Tessera, Inc., has signed an updated technology licensing agreement with United Test and Assembly Center Ltd (UTAC), an independent provider of test and assembly services for a wide range of semiconductor devices. The initial term of the updated license agreement runs through the end of 2016. UTAC has the option to renew the license for an additional five year term.
Among other consideration to Tessera, under the terms of the agreement UTAC will pay $15.0 million in cash to address past royalties owed under the initial license. Tessera will receive three separate payments, the first of which will occur in the first quarter of 2010 with the remainder in the second half of 2010. As a result of this initial payment, Tessera is raising its first quarter 2010 total revenue guidance range to be between $63.0 million and $64.0 million. This compares to previous first quarter 2010 total revenue guidance given on January 28, 2010, of between $58.0 million and $61.0 million.
The updated license agreement and payment for past royalties resolves all outstanding litigation between the companies, settling the parties' pending action in the Superior Court of the State of California (Alameda County).
Safe Harbor Statement
This press release 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 UTAC's use of Tessera's technology, UTAC's option to renew the license, the payment and receipt of amounts due to Tessera, the extent and duration of enablement by Tessera's technology, and industry and technology trends. Material factors that may cause results to differ from the statements made include delays, setbacks or losses relating to our intellectual property or intellectual property litigations, or any invalidation or limitation of our key patents; fluctuations in our 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 our ability to pro tect our intellectual property; the risk of a decline in demand for semiconductor products; failure by the industry to adopt our technologies; competing technologies; the future expiration of our patents; the future expiration of our license agreements and the cessation of related royalty income; the failure or refusal of licensees to pay royalties; failure to achieve the growth prospects and synergies expected from acquisition transactions; and delays and challenges associated with integrating acquired companies with our existing businesses. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. Tessera's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended Dec. 31, 2009, include more information about factors that could affect the company's financial results. Tessera assumes no obligation to update information contained in this press release. Although this release may remai n available on Tessera's website or elsewhere, its continued availability does not indicate that Tessera is reaffirming or confirming any of the information contained herein.
About Tessera
Tessera Technologies, Inc. invests in, licenses and delivers innovative miniaturization technologies for next-generation electronic devices. The company's micro-electronics solutions enable smaller, higher-functionality devices through chip-scale, 3D and wafer-level packaging technology, as well as high-density substrate and silent air cooling technology. Tessera's imaging and optics solutions provide low-cost, high-quality camera functionality in electronic products and include image sensor packaging, wafer-level optics and image enhancement intellectual property. The company also offers customized micro-optic lenses, from diffractive and refractive optical elements to integrated micro-optical subassemblies. Tessera licenses its technologies, as well as delivers products based on these technologies, to promote the development of the supply chain infrastructure. The company is headquartered in San Jose, California. For information call 1.408.321.6000 or go to www.tessera.com.
Tessera and the Tessera logo are trademarks or registered trademarks of Tessera, Inc. or its affiliated companies in the United States and other countries. All other company, brand and product names may be trademarks or registered trademarks of their respective companies.
TSRA-G
