Tessera Settles With PTI; Boosts Q1 Revenue Outlook

(RTTNews) - Tessera Technologies, Inc. (TSRA) said Thursday that its subsidiary, Tessera, Inc., has entered into a settlement with Powertech Technology, Inc., Powertech Technology (Suzhou) Co. Ltd., and Macrotech Technology, Inc. related to their pending cases in the United States District Court for the Northern District of California.

Under the terms of the settlement, PTI agrees to pay $196 million to Tessera, Inc. with two required payments to be made in 2014 and quarterly recurring payments beginning in 2015 through the end of 2018.

In addition, Tessera, Inc. and PTI have agreed to stay the pending cases. If Tessera, Inc. receives a majority of the total amount owed by PTI under the settlement, and other conditions are met, by March 31, 2015, Tessera, Inc. and PTI will dismiss the pending cases.

Tessera also said that it has increased its first quarter revenue guidance to a range of $83 million to $86 million from its prior guidance of $33 million to $36 million.