Tessera Shares Jump On 2Q Outlook, Motorola Deal

NEW YORK (AP) — Shares of Tessera Technologies Inc. advanced Wednesday after the company raised its second-quarter sales projection and announced a royalty deal with Motorola Inc.

Late Tuesday, the company said Motorola has agreed to pay royalties on certain cell phones, set-top boxes and radio equipment that incorporate Tessera's technology, though it did not release financial details.

With the Motorola agreement and better-than-expected revenue from other licensing deals, Tessera also boosted its sales outlook for the quarter ending in June to between $59 million and $61 million, up from $46 million to $49 million.

San Jose, Calif.-based Tessera, which provides miniaturization technology for electronics makers, saw shares jump $1.55, or 6.3 percent, to $26 in midday trading.

With Motorola in a royalty deal, attention turned to the other companies involved in a patent dispute with Tessera.

In May, the International Trade Commission decided to bar Motorola, along with Qualcomm Inc., Freescale Semiconductor Inc. and Spansion Inc., from selling products in their inventory that infringe on Tessera's technology rights.