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Tessera Technologies Inc. Message Board

  • ws90 ws90 May 15, 2012 12:52 PM Flag

    Cisco's Troubled Outlook At Tessera

    Very interesting article about Tesera. Read it before you invest another penny in this company and get out while you can.

    The recent Cisco Systems (CSCO) earnings report included very "worried" guidance about the near term future of its marketplace. CSCO's statements have taken many technology companies to the woodshed. Many may deserve to be there. Tessera Technologies Inc. (TSRA) may be one of the most deserving of punishment. In its Q1 2012 report it showed a loss of -$0.16 per share on a GAAP basis. Its net margin was -17.3%. This was after losing money for FY2011 on a GAAP basis. CSCO's view on the overall outlook for technology sales for the next year or so makes one wonder if TSRA has any chance at all to reverse its recent results. When you take into account that CSCO not long ago closed down its Flip Camera business as unprofitable, it makes you further wonder whether TSRA can turn around its DigitalOptics business. In Q1 2012 TSRA's Digital Optics business had total revenue of $7.7 million. This was down almost 50% from the $14.2 million in revenue it generated in Q1 2011. Not many businesses can sustain such dramatic slides. At best it is a very ill omen of things to come. Read the complete article at:

    Good Luck Trading.

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    • Depends on whether management can be trusted at all. They say that substantial sales of MEMS devices aew imminent (as in Q1--six weeks left). They say there is substantial interest in xFD for DRAM (the memory makers simply aren't agreeing on a standard for DDR4; xFD pretty much matches the non-standards for first-generation DDR4 at a lower price).

      Aside from that, there is a good chance of substantial awards based on past patent infringements coming in over the next couple years, and there is a decent chance that the popularity of ultrabooks will generate a meaningful market for "silent air cooling." Management says that negotiations are ongoing concerning licenses for companies that believed the only licenses they needed were for the now-expired fundamental patents.

      Arguably, we're looking at a company at the low point of a transition from an old business to a new one.

    • Let history be your guide to trading TSRA.

      TSRA has been a stuck value stock for the last 3 years.

      Buy at the lows of 11.xx like last year when many decided to exit.

      Looking back, TSRA @ 19.xx was the tops to sell.

      This time, TSRA might just get to 17-18 top.

      I had a dream TSRA could revisit 25-28 someday soon. Bad dream!

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