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| 8-K - FORM 8-K - TESSERA TECHNOLOGIES INC | d279370d8k.htm |
 Investor Overview
Robert A. Young
President and CEO
January 2012
Exhibit 99.1 |
 2
Safe Harbor
This presentation contains forward-looking statements, which are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements involve risks and uncertainties that could cause actual results to
differ significantly from those projected, particularly with respect to the
Company’s financial results and milestones; the impact of changes to
executive management and the board of directors; growth of the Company’s served markets; market opportunities;
industry and technology trends; use of the Company’s technology in additional
applications; growth opportunities, including with respect to the delivery
of next generation chip packaging, the diversification of the Company’s IP business, the development and
acquisition of camera module components, the production of integrated mobile camera
modules, the sourcing of MEMS components and expected design wins relating
to integrated mobile camera modules; growth drivers; expansion into adjacent and other markets;
the characteristics, benefits, advantages, features, disruptive qualities and
potential of the Company’s technologies and products, including with
respect to 3-D IC and other packaging solutions in the Company’s Micro-electronics segment and new generation
camera
modules
and
related
vertical
integration
opportunities
in
the
Company’s
Digital
Optics
segment,
and
the
commercialization
of
such technologies and products; profit growth in the Digital Optics segment; future
investment and research and development resources, including with respect to
strategic growth opportunities; ability to address upcoming needs of key market segments; the
expansion of the Company’s technology licensing expertise, including with
respect to the Company’s IP portfolio and the renewal of licenses with
major licensees; and the Company’s IP protection efforts, including litigation. Material factors that may cause results to
differ from the statements made include changes to the plans or operations relating
to the Company’s businesses and groups, market or industry conditions;
the future expiration of license agreements and the cessation of related royalty income; the failure or refusal of
licensees to pay royalties; delays, setbacks or losses relating to the
Company’s intellectual property or intellectual property litigation, or
any invalidation or limitation of key patents; fluctuations in operating results due to the timing of new license agreements and
royalties, or due to legal costs; changes in patent laws, regulation or
enforcement, or other factors that might affect the Company’s ability
to protect our intellectual property; the risk of a decline in demand for semiconductor products; failure by the industry to adopt
technologies covered by the Company’s patents; and the future expiration of
the Company’s patents. You are cautioned not to place undue reliance on
the forward-looking statements, which speak only as of the date of this release. The Company’s filings with the
Securities and Exchange Commission, including its Annual Report on Form 10-K
for the year ended Dec. 31, 2010 and Form 10-Q for the period ended
Sept. 30, 2011, include more information about factors that could affect the Company’s financial results. The
Company
assumes
no
obligation
to
update
information
contained
in
this
presentation.
Although
this
release
may
remain
available
on
the Company’s website or elsewhere, its continued availability does not
indicate that the Company is reaffirming or confirming any of the
information contained herein. This document includes trademarks, tradenames
and tradedress of the Company, its subsidiaries and of third parties. Those
intellectual property rights are owned by their respective owners.
|
 3
Additional Information and Where to Find It
Tessera Technologies, Inc. (the “Company”), its directors and certain
executive officers and employees may become participants in the solicitation
of proxies from stockholders in connection with the Company’s 2012
Annual Meeting of Stockholders (the “Annual Meeting”). The Company plans to file a
proxy
statement
with
the
Securities
and
Exchange
Commission
(the
“SEC”)
in
connection
with
the
solicitation of proxies for the Annual Meeting (the “2012 Proxy
Statement”). Robert J. Boehlke, John B. Goodrich, David C. Nagel, Kevin
G. Rivette, Anthony J. Tether, and Robert A. Young, all of whom are members
of the Company’s Board of Directors, and Michael Anthofer, Executive Vice President and
Chief Financial Officer, Bernard J. Cassidy, Executive Vice President, General
Counsel and Secretary and Moriah Shilton, Senior Director, Investor
Relations, may become participants in the Company’s solicitation.
Information
regarding
the
Company’s
directors’
and
executive
officers’
respective
interests
in
the Company by security holdings or otherwise is set forth in the Company’s
proxy statement relating to the 2011 annual meeting of stockholders.
No other participants own in excess of 1% of the Company’s common
stock. Additional information regarding the interests of such participants will be included in the
2012 Proxy Statement and other relevant documents to be filed with the SEC in
connection with the Annual Meeting. Promptly after filing its definitive
2012 Proxy Statement with the SEC, the Company will mail the definitive 2012
Proxy Statement and a proxy card to each stockholder entitled to vote at the
Annual Meeting. STOCKHOLDERS ARE URGED TO READ THE 2012 PROXY STATEMENT
(INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT
DOCUMENTS THAT THE COMPANY WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders may obtain, free of
charge, copies of the definitive 2012 Proxy Statement and any other
documents filed by the Company with the SEC in connection with the Annual
Meeting at the SEC’s website (http://www.sec.gov), at the
Company’s website (http://ir.tessera.com/sec.cfm) or by writing to the
Secretary, Tessera Technologies, Inc., 3025 Orchard Parkway, San Jose,
California 95134. |
 4
Tessera Technologies, Inc. at a Glance (NASDAQ: TSRA)
•
Founded in 1990 and headquartered in San Jose, California
•
Market capitalization of $919.9 million (as of Jan. 6, 2012)
Two business reporting segments:
•
Micro-electronics
-
Generating sustainable high margin cash flows from broad IP portfolio
-
Focused on chip packaging bottlenecks and 3D IC
-
Well-positioned to grow revenue base beyond semiconductor packaging
•
Digital Optics
-
Developing/producing the components of advanced camera modules for
mobile phones
-
Well-positioned to address near-term ~$1 billion MEMS auto-focus
market opportunity*
* Source:
Tessera
internal
forecast |
 5
Why Tessera?
•
IP licensing leader
•
Strong cash flow / strong balance sheet
•
New leadership team
•
Significant growth opportunities in 2012 and beyond |
 6
Industry Validated IP Portfolio
More than 70 companies have licensed our IP
60 billion chips have shipped with Tessera IP |
 7
New Leadership in 2011
Bob Young
President & CEO
IBM
Dillon Read
Bob Roohparvar
President, Digital Optics
Flextronics
Broadcom
Rich Chernicoff
President, Micro-electronics
SanDisk
Skadden Arps
Kevin Rivette
Director
IBM
Author: Rembrandts
in the Attic
Bob Boehlke
Non-executive
Chairman
KLA-Tencor
Tony Tether
Director
Director, DARPA
Loral /Ford Aerospace |
 8
* Source: Tessera internal forecast
Significant Growth Opportunities: Micro-electronics
•
IP licensing well-positioned
-
Renewed Hynix and Samsung in Nov. 2011
-
Others in 2012
•
New chip technologies coming to market
-
xFD (3 billion unit market opportunity)*
-
3D IC
•
Expanding into adjacent and other markets |
 9
* Source: Tessera internal forecast
Significant Growth Opportunities: Digital Optics
•
Developed / acquired multiple camera module components now
being shipped worldwide
-
90% of digital still camera leading OEMs
-
6 of top 10 mobile phone OEMs
•
Beginning to source key MEMS auto-focus component
-
Near-term ~$1 billion market opportunity*
-
Tier One qualified
•
Pursuing integrated mobile camera module opportunity
-
$9 billion market*
-
In discussions with major mobile phone makers
-
Expect major design wins in 2012 |
 10
Micro-electronics |
 11
Tessera Solved a Critical Chip Packaging Problem
•
Packaging enables chips to be attached to
circuit boards
•
As chips became faster, the package became
a limiting factor and had to be made smaller
•
With packages near chip size, reliability
became a significant issue
•
We invented better chip scale package
technologies -
smaller, faster and more
reliable
TSOP
Tessera’s CSP
We Licensed the Industry |
 12
Focused on Next Generations of Chip Packaging
2D Packaging
3D Interconnect
Space
Cost
Power
Performance
Strategic collaboration is a central
component of our development and
commercialization strategy |
 13
* Source: Tessera internal forecast
Our Latest Packaging Innovation: xFD for Stacked DRAM
Existing Solution: SO-DIMM
xFD: SO-DIMM in a Package
Delivering Smaller, Faster and Lower Cost Solutions
Growing to 3 billion units in 2013* |
 14
Tessera’s Industry Leading Roadmap
xFD for
Stacked DRAM
Fine Pitch PoP
for Mobile Apps
Low Cost
DRAM CSP
2.5D
Interposer
3D IC
Our ongoing investment in
R&D sustains and grows our
packaging royalty base
Recently
commercialized
Near-term R&D
investments
Long-term R&D
investments plus
partnership |
 15
IP Business: Organic Growth and Diversification
* 3-Year
(2008
–
2010)
Average
Non-GAAP
Operating
Margin
-
69.1%;
GAAP
Operating
Margin
-
66.7%
Existing Technologies & Customers
New Packaging Technologies
Existing Technologies , New Customers
Acquired IP in New Technologies
Revenue
2021
2012 |
 16 |
 Targeting the Primary Camera Module Market Needs
Auto Focus
Zoom
Image
Stabilization
Image Enhancement
Face Beautification
Face Recognition
Face Detection
Panorama, Wide Field of View
17 |
 18
DOC Technologies are Embedded in Handsets
of 6 of the Top 10 OEMs
DOC Technologies are used in DSC cameras
of more than 90% of the Leading OEMs
Transitioning DOC ‘Standard’
in DSC Image Enhancement to the
Mobile Imaging Market
Strong Market Acceptance for DOC Technologies |
 19
DOC’s Latest Product is a Game Changer
MEMS Actuator for Auto Focus vs Current Technology
•
Size
-
Smaller footprint
-
Thinner
•
Speed
-
7x faster settling time
-
7x faster auto focus time
•
Lower Power Consumption
-
Uses 1/300th of current power consumption
•
Image Quality
-
More accurate auto focus |
 20
MEMS Auto-focus: a Technology Breakthrough
Today: Typical cell phone camera lens actuator has 14 parts
Digital Optics’
new MEMS auto-focus actuator has 3 parts
1
3
2
New MEMS auto-
focus system can
‘plug and play’
in
same socket as
older systems
1
2
3
4
5
6
7
8
9
10
11-14
confidential |
 21
Source: Yole Development, January 2010
Sizable MEMS Auto-focus Market Opportunity
Targeting ~$1 billion
actuator market for
mobile phones
•
Fragmented
•
High volume
•
Lower margin
•
Commoditized
components
~660 million units in 2012 growing to ~1.1 billion units in 2015
|
 DOC
Technologies are Differentiators Fast, Low Power
MEMS AF for
‘continuous auto
focus’
Image Enhancement
Technologies
Improved optical
performance for
image sensors
Lowest height
camera
Video and Optical
Image Stabilization
Compact Optical
Zoom
DOC Enables Next Generation Cameraphones
22 |
 23
Enable Cell Phone Cameras to have DSC Capabilities
•
With Digital Optics IP, mobile phone cameras can …
-
Be smaller than current designs
-
Use significantly less battery power
-
Plug-in directly with fewer modular parts
-
Deliver the image quality of a full-sized digital camera
|
 24
$9B Mobile Camera Module Market Has No Dominant Player
•
Fragmented market
-
No single player has broad technologies,
competencies, IP
•
No vertical integration
-
No player has vertical integration
capabilities (lens, actuators, camera
system design, image enhancement
technologies)
•
Stagnant technology
-
No player has access or internal
development of disruptive, high value
technology components (e.g., MEMS)
Camera module integrators
Source: Techno Systems Research (TSR) 2011 and DOC internal forecast
|
 25
Summary
•
Micro-electronics
-
Patent monetization capabilities yielding $748 million of revenues and
compelling $499 million GAAP operating income over the last 3 years
(2008-2010)
-
Major licensees are renewing
-
Industry leading technology roadmap with transforming technology
•
Digital Optics
-
Well positioned for “sea-change”
market shift to mobile phone
photography
-
~$1 billion “plug compatible”
MEMS camera opportunity with game
changing auto-focus technology
-
Additional $9 billion vertical integration opportunity in the mobile
camera module market |
 26 |