B of A has a note out today saying that the drop could be due to large customers who have not renewed their licenses. Apparently, this is new news and was included in the 10-K.
"Shares of TSRA have sold off today by more than 11%. We believe that the weakness could be related to the recent 10-K filing, which reveals that the company’s two largest DRAM customers are Powertech and Micron, accounting for 25% and 19% respectively of total revenue in 2011. Given Micron has yet to exercise its renewal option on its license agreement (expiring in May) and Powertech has recently initiated litigation to terminate its license, we believe there could be potential pressure on these two customers’ ongoing revenue stream."
Neither of these is new news. The reminder of them may have caused the drop, though. What IS new is the revelation that Samsung and Hynix (who have bothe renewed their licenses) are relatively small customers.
At some point, there will have to be a lawsuit to test the effectiveness of Tessera's remaining patent portfolio; everyone knows that. The suit initiated by Powertech is inconvenient; Tessera would like to be the one initiating the action. In general, courts make some effort to avoid giving declaratory judgements, so Tessera has time yet to pick an infringer and sue over their choice of patents (and possibly trade secrets); it's just that in order to keep the Powertech matter stayed, the patent Powertech chose to fight over ought to be part of the mix.