UPDATE 1-Tessera Q1 profit lags Street, ups Q2 revenue outlook

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May 1 (Reuters) - Chip technology developer Tessera Technologies Inc (TSRA.O: Quote, Profile, Research) posted a first-quarter profit that was slightly below market expectations, but raised its revenue outlook for the second quarter, saying it sees strong growth in its core business.

The San Jose, California-based company reported net income of $2.2 million, or 5 cents a share, compared with $11.1 million, or 23 cents a share, a year ago.

Excluding items, the company earned $16.1 million, or 33 cents a share.

Revenue rose 27 percent to $59.4 million, helped by growth in memory chips and wireless unit sales, the company said in a statement.

Analysts on average expected the company to earn 34 cents a share, excluding exceptional items, on revenue of $56 million, according to Reuters Estimates.

Selling, general and administrative costs more than doubled to $35.5 million.

The company said it expects second-quarter revenue of $54 million to $56 million. The new forecast range exceeds the company's Jan. 31 outlook by $1 million. (Reporting by Abhishek Chanda in Bangalore; Editing by Vinu Pilakkott)