Attached files
| file | filename |
|---|---|
| 8-K - 8-K - TESSERA TECHNOLOGIES INC | d670906d8k.htm |
| EX-99.1 - EX-99.1 - TESSERA TECHNOLOGIES INC | d670906dex991.htm |
 February 5, 2014
Fourth Quarter & FY 2013 Earnings Presentation
Exhibit 99.2 |
 Safe
Harbor 2
This document 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 Tessera Technologies, Inc.’s
(the “Company”) financial results and projections, including projections on recurring
revenue, operating expenses and the Company’s target operating model; the Company’s
products and technology; growth of the Company’s served markets; market opportunities; and monetization of the
Company’s DigitalOptics (DOC) patent portfolio. Material factors that may cause results to differ
from the statements made include the plans or operations relating to the Company's businesses;
any need to spend more cash and/or incur greater charges than anticipated in connection with
the DOC restructuring, workforce reduction, facility closures and related activities; any need to
undertake further restructuring activities; market or industry conditions; changes in patent laws,
regulation or enforcement, or other factors that might affect the Company's ability to protect
or realize the value of its intellectual property; the expiration of license agreements and the
cessation of related royalty income; the failure, inability or refusal of licensees to pay royalties; initiation, delays,
setbacks or losses relating to the Company's intellectual property or intellectual property
litigations, or invalidation or limitation of key patents; the timing and results, which are
not predictable and may vary in any individual proceeding, of any ICC ruling or award,
including in the Amkor arbitration; fluctuations in operating results due to the timing of new license
agreements and royalties, or due to legal costs; the risk of a decline in demand for
semiconductor and products utilizing DOC technologies; failure by the industry to use
technologies covered by the Company's patents; the expiration of the Company's patents; the Company's ability to successfully
complete and integrate acquisitions of businesses; the risk of loss of, or decreases in production
orders from, customers of acquired businesses; financial and regulatory risks associated with
the international nature of the Company's businesses; failure of the Company's products to
achieve technological feasibility or profitability; failure to successfully commercialize the Company's products;
changes in demand for the products of the Company's customers; limited opportunities to license
technologies and sell products due to high concentration in the markets for semiconductors and
related products and camera modules; and the impact of competing technologies on the demand for
the Company's technologies and products. 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, 2012, and its Quarterly Report on Form 10-Q for the quarter ended
Sept. 30, 2013, include more information about factors that could affect the Company's financial results. The
Company assumes no obligation to update information contained in this press release. Although this
presentation 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. |
 Recurring & Episodic Revenue
3
Notes:
"Episodic" revenue includes lump-sum settlement payments, damages awards from
courts and tribunals, back payments resulting from audits, initial license fees,
non-recurring engineering, and other revenue that is not paid over at least one year of a contract.
The company is not providing a forecast of Episodic revenue for 2014.
"Recurring" revenue includes the Company's IP business and its FotoNation (EIE)
business. FY2013 Recurring includes approximately $5M for a contract that ended in 2013
and approximately $6.5 million royalty catch-up payment. |
 Recurring Revenue –
PTI & Micron Impact
4 |
 SK
hynix and Samsung Recurring Revenue 5
125+% |
 Litigation Spend
Litigation Spend in Near-term Target Operating Model is 14% of Total Revenue
(red line below)
6 |
 Near-Term Target Operating Model
7
Notes:
Expenses and Operating Income are non-GAAP. Target Operating Model
assumes revenue in the range of $180 million -$200 million annually.
Litigation expense could vary significantly by period. The Company intends to
update this Target Operating Model as the business changes. |
 “Mobile”
is Driving Unit Volume/Licensing Opportunities
8
Source: Dr. Morris Chang, TSMC |
 Imaging
is a Central Smartphone Feature Voice: Nuance
®
Audio: Dolby
®
Video: MPEG
®
Maps: Various
Imaging
Red Eye Removal
Face Recognition
Image
Stabilization
Face Detection &
Tracking
Panorama
Blink / Smile
Detection
Auto-Focus
9 |
 DOC
Patent Portfolio Targets Mobile Market * Smartphones: 1B in
2013 growing to 1.7B in 2017
* Tablets: 228M in 2013
growing to 407M in 2017
* Laptops: 204M in 2013
growing to 241M in 2017
Over 1140 Patents and Applications Covering a Wide Range of Mobile Imaging
Technologies Additional monetization opportunities may include a sale of the
portfolio, patent licensing, additional software/technology licensing, or
some combination thereof. 10 |
 What’s Valuable in Mobile Hardware?
11
Source: TechInsights |
 Mobile
Portfolio Segmentation 12
CSP/BGA
Substrate
& Design
Advanced
Assembly
Copper
Pillar
Wafer-
Level
PoP
Stack
Die
800+
Patent Assets
MOBILE
•
Design layout
optimization
•
Dielectric structure and
fabrication techniques
•
Component construction
•
Assembly materials,
equipment, and process
•
Advanced Chip-Scale Packages (CSP)
•
High-Density Ball-Grid-Array (BGA)
components and interconnect
•
System-in-Package
•
Ultra fine-pitch level 1
interconnect technology
•
Planar-
and
stacked wafers
•
High-Density Package-
on-Package
•
Vertically stacked
devices in package |
 xFD™
BVA™
Current DRAM
Package (TCC™)
Current Package
on Package
3D-IC
(Memory)
3D-IC
(Mobile)
Addressable Markets vs. Innovation Roadmap
13 |
 Non-GAAP
14
In addition to disclosing financial results calculated in accordance with U.S. Generally
Accepted Accounting Principles (GAAP), the Company’s presentation contains non-
GAAP financial measures adjusted for discontinued operations, either one-time or
ongoing non-cash acquired intangibles amortization charges, acquired in-process
research and development, all forms of stock-based compensation, impairment
charges on long-lived assets and goodwill, restructuring and other related exit costs,
and related tax effects. The non-GAAP financial measures also exclude the effects of
FASB Accounting Standards Codification 718, “Stock
Compensation” upon the number
of diluted shares used in calculating non-GAAP earnings per share. Management
believes that the non-GAAP measures used in this presentation provide investors with
important perspectives into the Company’s ongoing business performance. The non-
GAAP financial measures disclosed by the Company should not be considered a
substitute for, or superior to, financial measures calculated in accordance with GAAP,
and the financial results calculated in accordance with GAAP. The non-GAAP financial
measures used by the Company may be calculated differently from, and therefore may
not be comparable to, similarly titled measures used by other companies. |