Sneha Shah
Long/short equity, research analyst, tech, solar

Tessera Technologies - Patent Reform Makes It Risky

Tessera Technologies (NASDAQ:TSRA) is a small technology company that develops semiconductor chip packaging solutions and digital optics. The company gets most of its revenues (80%) by licensing the IP for chip packaging to other semiconductor companies as well as assembly and testing companies. The company has recently started to restructure its operations getting out of the contract manufacturing of camera modules for smartphones. TSRA is on its way to spin off its digital optics segment which has contributed heavily to its operating losses in the past few years. The company is heavily cash positive as it gets a steady stream of royalty revenues for its 1500 plus patents and also wins "episodic revenue" (legal settlements against companies it...

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