Update (4:35 p.m. EST): Updated with closing price, day high and low prices, price change and volume information.
NEW YORK (TheStreet) -- Tessera Technologies (TSRA) dropped 8.38% to $17.92, down $1.64 from its previous close of $19.56, at the close of the trading day on Thursday after the company announced it would cease remaining operations at its DigitalOptics business to instead focus on earning money from its other technologies.
The stock had a volume of 1,796,156, more than four times its average of 420,276. It hit a high of $18.42 and a low of $17.60 for the day.
The San Jose-based company decided to end operations at DigitalOptics, which makes camera parts for smartphones, in order to focus on main operations, bring down operating costs and increase profitability. The move should lead to restructuring and impairment charges of $50 million to $55 million. Approximately 75% of those charges will take effect in the company's fourth quarter, while the rest will take effect in the first half of 2014. Tessera expects its quarterly DigitalOptics-related operating expenses to decline by approximately $17 million, which should be realized in full by the third quarter of 2014.
Chief Executive Officer Tom Lacey said in a company statement that Tessera would continue to run its image enhancement business while it explores new ways to earn value from DigitalOptics' intellectual property portfolio. A sale or licensing agreement are two such options.
TheStreet Ratings team rates Tessera as a "Hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: