Tessera Technologies Earnings: Here’s Why Investors Like These Results

Tessera Technologies Inc. (NASDAQ:TSRA) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0%.

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Tessera Technologies Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.36 in the quarter versus EPS of $-0.08 in the year-earlier quarter.

Revenue: Decreased 33.32% to $31.12 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tessera Technologies Inc. reported adjusted EPS loss of $0.36 per share. By that measure, the company missed the mean analyst estimate of $-0.27. It beat the average revenue estimate of $30.55 million.

Quoting Management: “Our first quarter of 2013 was a very difficult quarter for us,” said Richard S. Hill, interim CEO of Tessera Technologies, Inc. “The confluence of a costly proxy battle, PTI’s decision to default on their contract and Micron’s decision to not renew their contract made it difficult to meet last year’s performance metrics.”

Hill continued, “On the brighter side, we signed SK hynix to two new eight-year patent license agreements to our Tessera, Inc. and Invensas Corporation portfolios, which will begin contributing to our recurring revenue in the second quarter, and, as recently announced this week, Samsung Electronics Co., Ltd. signed a multi-year license for our Face Detection and Face Tracking software, which will be used in the newly launching Samsung Galaxy S® 4 smartphones.”

Key Stats (on next page)…

Revenue decreased 41.55% from $53.24 million in the previous quarter. EPS decreased to $-0.36 in the quarter versus EPS of $-0.24 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.03 to a loss $0.17. For the current year, the average estimate has moved up from a profit of $0.1 to a profit of $0.11 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)