Tessera Technologies, Inc. Q1 2009 Earnings Call Transcript

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2009-04-30 19:33:13.0

Tags: Revenue, Optics, Imaging, Call Transcript, Earnings, Dblur, Brett, Document Management, Enterprise Software, Software, Finance, Managerial Accounting, Seeking Alpha, Tessera Technologies

Question-and-Answer Session

Operator

(Operator Instructions). Your first question comes from the line of Brett Hodess with Banc of America

Brett Hodess - Banc of America

Hank I wonder if you can talk a little bit about if Dblur has licenses yet or any revenue streams yet or if you’re in discussions then you can give us some timing of when that might start to have some kind of contributions and also if you could give us a little bit of an update as well on when you talked a little bit of the imaging side and some of the new licenses but [Technical Difficulty].

Hank Nothhaft

Operator, hello.

Operator

Yes, I am here.

Hank Nothhaft

Mr. Hodess was cut off in midstream, was that him being cut off or is the entire call?

Operator

Yes. Mr. Hodess (Operator Instructions). Your line is open.

Hank Nothhaft

Hello Brett, can you hear me? Brett is that you?

Brett Hodess - Banc of America

Yes, it's Brett.

Hank Nothhaft

Okay. This is Hank. I got your question on the Dblur. You were just giving us a second follow-on question.

Brett Hodess - Banc of America

Yes, so the first one was the Dblur, a second was an update on timing when you think you might start to see more products from the other imaging licenses start to ramp up?

Hank Nothhaft

Could you be more specific as to what products you are referencing?

Brett Hodess - Banc of America

Just in general on the imaging side, like the Q Technologies and some of the other.

Hank Nothhaft

I understand. Okay. So, thank you for the question, Brett. First of all the question regarding Dblur. Dblur was a venture back company, headquartered in Israel. The transaction that we entered into was an asset by. As a result we ended up hiring a small number of employees Dblur. We were able to acquire some interesting IP. Some technology know-how, and several contracts that they had in place. It is too early for me to make any prognostications as to when and if any revenue would result from this transaction primarily, we were looking at the intellectual property employees and the IP as the primary benefits of this transaction.

Secondly, in response to you question about imaging and optics. Royalty and licensing development, I think, that we will see in late Q3 MVP production occurring from Qtech and in the fourth quarter we believe that they will be in a position to start manufacturing wafer-level optics products and so with the typical lag times in both we would expect to see royalties in the 2010 first half time frame. In terms of other developments on previous calls we have mentioned, that we have been fortunate enough to be winning a series at the time and IT awards, those have continued to material prepare us on schedule and so in the second half of 2009 we would expect to see royalties starting to slow in from those activities.

 

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