Tessera Receives Initial $20 Million Payment Resulting from Amkor Arbitration
SAN JOSE, Calif.--(BUSINESS WIRE)-- Tessera Technologies, Inc. (TSRA) (the Company) announced today that Tessera, Inc. has received an initial payment of approximately $20 million from Amkor Technology, Inc. related to the interim award the International Court of Arbitration of the International Chamber of Commerce (ICC) issued on July 6, 2012, in favor of Tessera, Inc. in its dispute with Amkor.
As previously announced, we intend to seek an amount in excess of $125 million in connection with the ICCs interim award, stated Richard Chernicoff, president of Tessera Intellectual Property Corp. We believe that litigation tactics are driving Amkors decision to only pay this partial amount at this time, and we will continue to vigorously pursue our right to recover the full amount due.
Safe Harbor Statement
This press release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause actual results to differ significantly from those projected, particularly with respect to the Amkor arbitration, including the amount Tessera, Inc. intends to seek from Amkor. Material factors that may cause results to differ from the statements made include the plans or operations relating to the Companys businesses; market or industry conditions; the expiration of license agreements and the cessation of related royalty income; the failure, inability or refusal of licensees to pay royalties; initiation, delays, setbacks or losses relating to the Companys intellectual property or intellectual property litigations, or invalidation or limitation of key patents; the timing and results, which are not predictable and may vary in any individual proceeding, of any ICC ruling or award, including the Amkor arbitration; fluctuations in operating results due to the timing of new license agreements and royalties, or due to legal costs; changes in patent laws, regulation or enforcement, or other factors that might affect the Companys ability to protect or realize the value of its intellectual property; the risk of a decline in demand for semiconductor and camera module products; failure by the industry to use technologies covered by the Companys patents; the expiration of the Companys patents; the Company's ability to successfully complete and integrate acquisitions of businesses, including the integration by DigitalOptics Corporation (DOC) of its recently acquired camera module manufacturing facility in Zhuhai, China; the risk of loss of, or decreases in production orders from, customers of acquired businesses; financial and regulatory risks associated with the international nature of the Companys businesses; failure of the Companys products to achieve technological feasibility or profitability; failure to successfully commercialize the Companys products; changes in demand for the products of the Companys customers; limited opportunities to license technologies and sell products due to high concentration in the markets for semiconductors and related products and camera modules; the impact of competing technologies on the demand for the Companys technologies and products; failure by DOC to become a vertically integrated camera module supplier; and the reliance on a limited number of suppliers for the components used in the manufacture of DOC products. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. The Companys filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended Dec. 31, 2011, and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, include more information about factors that could affect the Companys financial results. The Company assumes no obligation to update information contained in this press release. Although this release may remain available on the Companys website or elsewhere, its continued availability does not indicate that the Company is reaffirming or confirming any of the information contained herein.
About Tessera Technologies, Inc.
Tessera Technologies, Inc. is a holding company with operating subsidiaries in two segments: Intellectual Property and DigitalOptics. Our Intellectual Property business generates revenue from patented innovations through license agreements with semiconductor companies and outsourced semiconductor assembly and test companies. Tessera, Inc. pioneered chip-scale packaging solutions for the semiconductor industry. Our DigitalOptics business delivers innovation in imaging and optics with products and capabilities that enable expanded functionality in increasingly smaller devices. Our 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. We also offer customized micro-optic lenses from diffractive and refractive optical elements to integrated micro-optical subassemblies. For more information call 1-408-321-6000 or visit www.tessera.com.
Tessera, Tessera, Inc., the Tessera logo, DigitalOptics Corporation, and Invensas Corporation are trademarks or registered trademarks of affiliated companies of Tessera Technologies, Inc. in the United States and other countries. All other company, brand and product names may be trademarks or registered trademarks of their respective companies.
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Source: Tessera Technologies, Inc.Copyright Business Wire 2012