January 6, 2010 / 10:09 PM / 10 years ago

UPDATE 2-Tessera revises Q4 revenue view lower; shares fall

* Sees Q4 rev $56 mln vs est $61.3 mln

* Sees Q1 rev $59-61 mln vs est $64.5 mln

* Says received lower royalties from 2 large customers (Adds details)

By Ashutosh Joshi

Jan 6 (Reuters) - Chip technology developer Tessera Technologies Inc TSRA.O on Wednesday cut its fourth-quarter revenue estimate due to lower-than-expected royalties from two key customers, sending its shares down 9 percent.

The company, which licenses chip technology to a host of companies including Intel Corp (INTC.O), Sony Corp (6758.T) and Siemens AG (SIEGn.DE), also forecast first-quarter revenue below Wall Street estimates.

Tessera said royalties from two of its large micro-electronics customers were lower as they received volume-based pricing incentives.

For the fourth quarter, the company expects revenue of $56 million, down from its earlier view of $60 million to $62 million.

Analysts, on average, expected the company to report revenue of $61.3 million, according to Thomson Reuters I/B/E/S.

“We expect our preliminary micro-electronics revenue will be about $48.5 million,” Chief Executive Henry Nothhaft said in a statement. The company earlier expected revenue in the range of $53 million and $54 million from its micro-electronics business for the fourth quarter.

The company, which is involved in a patents dispute with several chipmakers, gets 85 percent of its revenue from the micro-electronics segment, which licenses chip technologies for small electronic devices.

For the first quarter of 2010, the company sees revenue between $59 million and $61 million. Analysts expected Tessera to report a revenue of $64.5 million.

The company said first quarter micro-electronics revenue was expected to range between $51 million and $53 million, all of which will be royalty and license related.

San Jose, California-based Tessera’s stock, which has lost about 10 percent in the last three months, closed at $23.39 Wednesday on Nasdaq.

The company will report its fourth-quarter results on Jan. 28. (Reporting by Ashutosh Joshi in Bangalore; Editing by Saumyadeb Chakrabarty)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below