July 2, 2012 - BUSINESS WIRE -- Tessera Technologies Inc. (NASDAQ:TSRA) has received notice from Powertech Technology Inc. (PTI) that it will terminate its license agreement with the semiconductor packaging and optics technology company. Tessera also completed phase 1 of its acquisition of camera module technologies from Flextronics.
Tessera Inc., a wholly-owned subsidiary of Tessera Technologies Inc., received a letter from Powertech Technology Inc. (PTI) that purports to terminate its license agreement with Tessera Inc. PTI stated that on July 30, 2012, it will make a payment to Tessera Inc. in protest under the license agreement for the quarter ended June 30, 2012.
PTI filed a complaint against Tessera, Inc. in December of 2011, seeking a declaratory judgment that PTI had the right to terminate its license agreement due to a breach of contract by Tessera, Inc. “PTI’s position is without merit because there was no breach of contract by Tessera, Inc.,” said Richard Chernicoff, president of Tessera Intellectual Property Corp. Tessera will defend the agreement in court.
PTI’s contribution to overall TSRA revenue is “of declining significance in comparison to past years,” added Chernicoff, who asserted that multiple portfolios and diverse revenue sources protect Tessera from significant effects resulting from one patent licensing agreement.
Meanwhile, another Tessera subsidiary, DigitalOptics Corporation (DOC) completed the acquisition of Vista Point Technologies assets. Vista Point Technologies, a Tier One qualified camera module manufacturing business, was acquired from Flextronics International Ltd. (NASDAQ:FLEX). DOC expects to acquire certain additional assets from Flextronics at a second closing, which is scheduled to occur on or before March 31, 2013.
Tessera Technologies Inc. is a holding company with operating subsidiaries in two segments: Intellectual Property and DigitalOptics. The Intellectual Property business generates revenue from patented innovations through license agreements with semiconductor companies and outsourced semiconductor assembly and test (OSAT) companies. Tessera Inc. pioneered chip-scale packaging solutions for the semiconductor industry. DigitalOptics delivers innovation in imaging and optics with products and capabilities that enable expanded functionality in increasingly smaller devices. Its miniaturized camera module solutions provide cost-effective, high-quality camera features, including Micro Electro Mechanical Systems (MEMS)-based autofocus, extended depth of field (EDoF), zoom, image enhancement and optical image stabilization. TSRA also offers customized micro-optic lenses from diffractive and refractive optical elements to integrated micro-optical subassemblies. For information, go to www.tessera.com.