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Tessera to cease DigitalOptics manufacturing

Published on NewsOK Modified: January 16, 2014 at 9:19 am •  Published: January 16, 2014
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SAN JOSE, Calif. (AP) — Tessera Technologies Inc. said Thursday that it will end its remaining manufacturing operations at its DigitalOptics business, which makes camera parts for smartphones, and focus on making money off of some of its technologies.

The San Jose, Calif.-based company, which also provides chip technology for small electronic devices, said the move will allow it to focus on its core operations, reduce operating costs and help improve its financial performance and profitability.

The move is expected to result in restructuring and impairment charges of $50 million to $55 million, with about 75 percent of that charge being taken the fourth quarter of 2013 and the rest in the first half of 2014.

Tessera CEO Tom Lacey said the company will continue to operate its image enhancement business, while also looking for new ways to extract value from DigitalOptics' intellectual property portfolio, including through a possible sale or licensing agreement.

Tessera shares fell $1.66, or 8.5 percent, to $17.90 in morning trading. Its shares are up almost 7 percent over the past year.