Tessera Jacks Guidance

The semiconductor company cites strength in the wireless and consumer electronics markets.
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Tessera Technologies

(TSRA)

Monday raised third-quarter guidance well above analysts' expectations, triggering an early rally.

The San Jose-based company said it now expects quarterly revenue in the range of $22.3 million to $22.6 million. Net income is forecast at $12 million to $12.2 million, or 25 cents to 26 cents a share.

Analysts expect a profit of $9.9 million, or 21 cents a share, on revenue of $20.3 million, according to Thomson First Call.

The company previously forecast quarterly revenue of $20.1 million to $20.5 million, net income of $10 million to $10.3 million and EPS of 21 cents.

"Recent reports from our customers indicate Tessera will receive greater-than-expected royalty revenue during the third quarter. This increase is broad-based and reflects strength in both wireless and consumer electronics end markets," the company said.

Shares rose $1.33, or 7%, to $20.20 in premarket trading.

The semiconductor company went public last November.