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On the call today from management are Robert Young, president and chief executive officer; Mike Anthofer, chief financial officer; Barney Cassidy, general counsel; Rich Chernicoff, president of Tessera Intellectual Property Corp.; and Bob Roohparvar, president of DigitalOptics Corporation.During this call today, management may discuss certain non-GAAP financial measures for comparison purposes only. The non-GAAP amounts of cost of revenues; research and development; selling, general and administrative expenses; net income; and earnings per share do not include the following: stock-based compensation expense, acquired intangibles, amortization charges, charges for acquired in-process research and development, impairment charges on long-lived assets and goodwill, and related tax effects. After management’s brief opening remarks, we will open the call to your questions. And I will now turn the call over to Mike. Robert Young Thank you all for joining us on the call today. I’d like to take a few minutes to discuss both our business segments before opening the call for your questions. First, on the intellectual property segment, we generated $92 million in intellectual property revenue in the first half of 2012. We are executing well and are focused on securing long term running royalty license agreements with current and potential customers for our patent portfolios. In the second quarter, Invensas Corporation expanded its technology portfolio with the introduction of two new technologies: the dual in-line memory module in a package, and the bond via array (BVA). We are working toward commercial adoption of these technologies now. Recently, the International Chamber of Commerce ruled in favor of Tessera, Inc. in its dispute with Amkor Technology. We intend to seek an amount in excess of $125 million from Amkor based on our preliminary review of this interim award. For our digital optics segment, in the first half of 2012 we made significant progress toward our goal of becoming a vertically integrated, original design manufacturer of next-generation integrated camera modules. We anticipate shipping our MEMS autofocus technology in the fourth quarter of this year to a primary integrator partner for use in a specific platform of a tier one customer.
In parallel, we are building our own lens manufacturing facility in Taiwan, which will allow us to better control the supply chain and to deliver to our customers a complete camera module solution. Long term, growth for digital optics will come from the sale of our next-generation camera modules to the $9 billion market for mobile phone cameras.Now before I turn the call over to the operator for questions from you, I want to discuss the change in our guidance policy that we announced today. In 2013, we expect to see significant changes in our business, as our digital optics business starts to generate high volume manufacturing of integrated camera modules for mobile phones, and we believe it will generate meaningful sales. As with most new businesses, there is a greater uncertainty initially into the predictability of revenue. This uncertainty will not enable us to provide sufficient visibility to investors regarding near term financial expectations and performance. Therefore, commencing with the first quarter of 2013, we plan to no longer provide financial guidance. Now I’d like to turn the call over to the operator for questions. Operator? Question-and-Answer Session Operator [Operator instructions.] And your first question will come from the line of Jonathan Skeels with Davenport. Please go ahead with your question. Jonathan Skeels - Davenport & Co. A few on the digital optics business. Earlier this year you laid out certain milestones for investors to monitor the progress of optics, and the first one was I think the MEMS foundry supply chain, and camera module assembly capabilities, which you accomplished. Second was a design win by the first half of the year. This didn’t happen. I’m just wondering if you can update us on why it didn’t happen, and where this design win currently stands. Read the rest of this transcript for free on seekingalpha.com