Tessera Technologies, Inc. Q2 2009 Earnings Call Transcript

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2009-08-04 18:15:43.0

Tags: Barclays Plc., Call Transcript, Earnings, Question, Seeking Alpha, Tessera Technologies

Question-and-Answer Session

Operator

(Operator instructions) Your first question comes from CJ Muse of Barclays Capital.

CJ Muse – Barclays Capital

Thank you for taking my question, Hank and Mike. I guess first question, you talked about Toshiba's stance on starting to ramp in late 2009 and I guess a – two-part question to this. One, can you give some sort of context to what kind of magnitude we could see versus the current run rate? And then I guess second part of the question there is, are you close to signing up additional customers for that product as well?

Hank Nothhaft

CJ, this is Hank and thank you for your question. So the imaging and optics division had a very good quarter and we are very satisfied and optimistic about the potential and certainly we are very enthusiastic about hitting our $100 million goal in 2011, but it is very much like doing a startup in a – within a public company. And because the division is rather small and as Mike said in his comments, we are going to experience lumpy results based on contract wins, one-time license fees as we build the royalty stream.

So we have won a number of important engagements with the potential manufacturers that I mentioned in the script and we do expect those royalties to ramp as handsets that include that technology start to ship, but I really don't and can't put a context of magnitude on it. It is a very active market and we are engaged in bidding on and pursuing a number of new projects at this time. So we feel we are right on schedule and very confident about the future of the division.

CJ Muse – Barclays Capital

Sounds good. And if I could, I guess, make my follow-up question, considering the advantage I guess Amkor has relative to some of the other non-licensee (inaudible), can you talk about whether or not you've had conversations there, whether you think despite the ITC Subcon case being dismissed that they could actually come back and become licensees?

Hank Nothhaft

CJ, I'm not sure I – I understood kind of what you said, but I’m not sure what your specific question was.

CJ Muse – Barclays Capital

Well, the question – I mean, Amkor is a licensee, ASE still or not, do you see a situation where they could come in given the competitive advantage that Amkor enjoys?

 

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