Tessera Tech a Buy, Post-Earnings

Tessera Technologies' (TSRA - Analyst Report) advanced packaging technologies have industry-wide application. December quarter top and bottom-line results beat consensus estimates. The licensing business has very attractive operating leverage characteristics.

The firm has won 5 major lawsuits and now receives royalties from all of the Big 4 in the DRAM market. TSRA currently has 4 major litigation cases pending. These could provide significant ongoing, one-time income, or both. We continue to rate shares of TSRA a Buy.

On February 2, 2008, Tessera announced results for the 4th quarter of fiscal year 2008 ending December 2008. Revenue for the period was $69.1 million, up 8.8% sequentially, and up 30.3% year-over-year. Growth was driven by stronger-than-expected royalty revenue from certain existing customers and option fees from Motorola (MOT - Analyst Report).

Read the analyst note on TSRA.

Read the full analyst report on MOT.