Estimates for next year are very good and that's what matters for a long term position hence low volume despite bad numbers. 1st quarter of 2014 will be the real test to see if they show up and beat and projections are true. Overall, a good hold but I'd like to see the price closer to its Enterprise value before I jump in or any report solidifying next year's estimate would be an good entry price, Still watching...
Tessera reports huge losses yet everyone seems to be fine with that. Obviously, their financials are complex and I would have to dig a lot deeper before I understood this company well enough to decide whether it is a good investment opportunity or not.
In the meantime the company does intrigue me so I will try to start understanding it better. Maybe at some point buy some shares.
The Q3 numbers are going to be released in the first week of November. That will determine the short term trend of the stock. Analyst estimates the revenues to come in at $36 million, while the management guidance is for revenues in the range of $35-38 million. This indicates a decline on a yoy basis. In Q2'13, the revenues declined on a yoy and a sequential basis. The sale of some Micro-optics assets to FLIR will give the company additional $15 million. The long term performance of the company has not been good as the revenues have declined, and the losses have increased over the past few years. The revenues & operating profit of the IP segment have declined. The digital optics segment has also seen decline in revenues, and the net losses have increased. The overall market for monetizing IPRs has done well recently, and several companies have begun to assert their proprietary or acquired patent rights. Spherix (SPEX) recently acquired hundreds of patents and has already filed lawsuits against T-Mobile, Vtech and Uniden to enforce its rights. For Tessera, the operating expenses comprise mainly of R&D and SGA expenses, and there have been unusual expenses related to impairment of Goodwill and restructuring expenses. The litigation costs have also increased. On the positive side, the cash position is very good, and there is no debt. The spin-off of the manufacturing part of the digital optics segment may help reduce pressure on margins because that has been the major drag for years. The stock performance over the last 3-4 months has not been good, though it has appreciated 33% on a 52 week basis. It is trading around important levels, and needs to rebound and cross $20 convincingly so that it can gain positive momentum. The sustainability of any upward movement will depend on the financial performance in the next few quarters.
I guess this is the tier 1 win we've heard about for so long. I'm really anxious to see how this camera is received, the Lytro functionality looks AWESOME.
"The cryptic abbreviation is not important - what’s important is that MEMS cameras can focus 7 times faster than current cameras and take multiple images extremely fast. Those extremely quick capture times will allow for a quick succession of shots, and if the object is not moving fast, you'd be able to shoot first and focus later, like on a Lytro camera. Be it daylight or night time, a MEMS camera locks focus in a fraction of a second and multiple times faster than current cameras. The Nexus 5 will likely be the handset that brings the technology to the mainstream."
Real good jump in estimates: 2013's "minus .59 cents & 179mil in revs", compared to 2014's "$1.62 & $321mil". That's a sweet jump and the board seems comfortable with it considering all the insider buying unless there's something else cooking. They've been burning some cash but with close to 400mil in cash and no debt, looks like management did a decent job of surviving the bleak times since they traded in the 40's range. The chart looks like it'll find a bottom soon creating a sideways trend till the expectations come out next year, and it'll be nice to see the price share drop down closer to it's enterprise value before next year's estimates start rolling in too. Insider Buying plus 2014's estimates plus no debt and a lot of cash makes this look real good for 2014. Only question: can their product line justify it's 2014 numbers? Any thoughts?
The spin-off presently appears to be off. The major asset is the MEMS lens assembly mover (autofocus). This has lately been partnered. Other important assets (construction techniques originally developed for integrated camera manufacture) have been transferred internally to Invensas. The assets that have been sold were basically involved in advancing the technology; Tessera is choosing to return to a specialization in electronic device design.
Just discovered TSRA in a rather dated article. This article mentioned a planned spin off of the optics and imaging business by 2015. But I can't find any recent information about this. Does anyone know the status of the spin off?
I went to TSRA's website and there is a press release there: "Tessera Technologies Sells Micro-Optics Assets to FLIR." But not a lot of details are provided. What is the significance of this in relation to the proposed spin off?
That recent big insider buy in intriguing.
Director Peter Feld has bought 400,000 shares over the last week for prices from $18.79 to $19.11 (essentially market price) spending a cool $7.6M bucks for them - wonder if he knows something we don't? He works for Starboard, the activist HF that forced all of the changes on TSRA like selling the micro optics division - I see this as a clear good sign for our future pps - he wouldn't be investing so much money into something he doesn't think is undervalued.
Interim management team put on a good call, but they're interim.
I particularly liked the enumeration of legal matters likely to have developments on an investor's time frame.
I remain concerned about teaching Chinese manufacturing companies how to make MEMS actuators. Sure, contract manufacturing is more controlled than licensing for royalties, but it means teaching the key technology to more people in a society where theft of trade secrets is almost the norm.
I held off buying more TSRA because of that $14 price target. I bought some down there and am now slightly 'above water'. Last time I look at analyst 'targets' ! You might as well throw darts at a homemade stock-board.
How about this $0.30 PS Extra Dividend ? Shorts don't get it only holders as of 5/23 payable 5/30. If you don't understand how the game works you shouldn't play.
Attempting to hold on by offering tidbits (16 mil buyback- to cover their own option/ grant dilution?). Shareholders might be interested in retaining these bozos if they would reduce their Board fees and lower their option grants- but they won't. Time to move on- your passed record is what matters, not the rehab your attempting,
"You KNOW that this is about recognition that Tessera was worth more in little pieces than the stock price when the fight heated up, and both sides thinking that they could give small holders enough to keep us quiet "
They don't give a rat's patootie about us retailers - 'tutes own 95% of the float.
Private equity funds give me hives, so with the slightest excuse to stay with entrenched management [and that's about all we have] I'm inclined to stay. If I understand right, the latest maneuver means that neither side can get a TOTAL victory [suggesting that Blackboard, what I call the incumbents because of their tendency to hide information, is running VERY scared]. The slanging match is fun, but it's gotten too fast to summarize.
You KNOW that this is about recognition that Tessera was worth more in little pieces than the stock price when the fight heated up, and both sides thinking that they could give small holders enough to keep us quiet while pocketing the bulk of the liquidation premium personally. An entrenched board has to generate more cover while performing such a looting exercise (possibly why they went so totally black).
I suspect that Starboard has directed attention to "The Man Behind the Curtain" in pointing out the futility of Invensas to date. It's quite possible that Blackboard and cronies have been managing negotiations/legal maneuvers toward a sudden flood of licenses, an ideal situation for having a lot of money stick to the people managing its flow (for instance, by a management LBO--I'd certainly consider acquiring a stink for a couple hundred millions). I don't for a second think that Starboard have different intentions, though.
The bums (BOD and CEO) need to be thrown out on their ears! Too little too late.
Tessera Gratified That Starboard Admits Direct Conflict of Interest
Starboard's phoney BOD slate exposed:
Starboard Reveals Details of its Plan to Convert Tessera into a “Patent Troll”
Tessera’s Plan Is Superior, Already Being Executed and Showing Progress
SAN JOSE, Calif.--(BUSINESS WIRE)--
Tessera Technologies, Inc. (TSRA) ("Tessera" or the "Company") today issued a statement in response to Starboard Value LP’s (“Starboard”) open letter to Tessera stockholders in connection with the Company’s 2013 Annual Meeting scheduled on May 23, 2013. The Company urges stockholders to not be misled by Starboard’s misinformation campaign and to vote FOR the Tessera nominees on the GOLD card in order to protect the value of their investment.
“We are gratified that Starboard has finally admitted in today’s letter that Unwired Planet (“UPIP”), whose board is led by Starboard nominee Peter Feld, is a direct competitor of Tessera’s,” said Richard S. Hill, interim CEO and executive chairman of Tessera. “Tessera’s Board strongly believes that this conflict of interest disqualifies Mr. Feld as a potential director of the Company. Mr. Feld is clearly grasping at straws with his endless misguided rhetoric on matters that have been addressed already and frankly don’t merit further comment. However, Starboard’s letter does make clear that – should it take control of the Tessera Board – Starboard intends to convert Tessera into a ‘patent troll’ in the model of UPIP. Mr. Feld’s abysmal track record as Chairman of UPIP should cause grave concern among Tessera’s stockholders about this strategy. Since Mr. Feld became chairman of UPIP, its revenues have plummeted to almost nothing, and the stock has significantly underperformed both its peer group and the broader market. We strongly believe that converting Tessera to the UPIP business model – as Starboard’s letter has made clear its intention – would destroy value for Tessera stockholders.
The degree of damage this BOD has created, not only with its shareholders, analysts and clients is such that the entire Board must be replaced. Placing cronies onto the Board is smoke. When they finally realized that their abysmal performance was finally being scrutinized, they turned cheek and we know the rest. They weren't the catalyst for recent improved outcomes and there are still plenty more issues to solve. If Starboard did not get involved, the Board would have continued with their dictatorial behavior and there would have been no price appreciation of the shares. They crossed the line and they must go- all of them!