Tessera signs Motorola royalty terms, ups outlook
SAN JOSE, Calif. (AP) – Tessera Technologies said Tuesday it has negotiated a licensing agreement with Motorola over disputed technology rights and raised its second-quarter sales forecast.
Shares jumped $3.63, or 15 percent, to $28.08 in after-hours trading, having closed earlier down 25 cents to $24.45.
The company, which provides miniaturization technology for electronics makers, did not disclose specific financial details of its arrangement with Motorola.
Tessera said that, under the deal, Motorola will pay royalties on certain cell phones, set-top boxes and radio equipment that use chips with technology patented by Tessera.
Last month, Tessera won a ruling from the International Trade Commission barring Schaumburg, Ill.-based Motorola, as well as Qualcomm, Freescale Semiconductor and Spansion, from selling inventory that infringe on the company's technology rights.
The deal announced Tuesday allows Motorola to continue selling the products without interruption, Tessera said.
Motorola shares edged up 8 cents to close at $6.41. Shares were flat in after-hours trading.
Tessera also raised its sales estimate for the second quarter to between $59 million and $61 million, up from $46 million to $49 million. Analysts on average are looking for sales of $47.8 million, according to a Thomson Reuters survey.