Very strong AH action and there will be carryover tomorrow. Nearly all of the drop has been related to Tessera and they are minimizing the effect of the settlement. Business is improving, and that's what will drive the stock price back up. I think the stock will climb back up to the $4.50-$4.75 area and form a new base before advancing past $5 later this year. If there is a pullback under $4---jump on it. Coming in at the high end of expectations answered a lot of questions.
While I think you are right that a good portion of the loss relates to Tessera don't forget that they only booked the minimum accrual that was more likely than not. There is likely more to come and it will weigh on future quarters. Korea Inc. seems to be holding up but the Won is increasing and that will weigh on future results as well.
Still, they are doing o.k. and that is certainly better than what most people expected.
What they actually book as far as the Tessera compensation is not critical Q to Q, as this has been factored into the equation since the settlement was announced. Now it's all back to being about the business and growth, and the company did beat and show growth. The settlement is just a "business expense" now, and the stock will reflect the actual growth trend and anticipateds growth to come. $5 again shortly.