The 10-second takeaway
For the quarter ended March 31 (Q1), Tessera Technologies met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
Tessera Technologies logged revenue of $46.7 million. The two analysts polled by S&P Capital IQ anticipated net sales of $46.8 million on the same basis. GAAP reported sales were 31% lower than the prior-year quarter's $67.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.16. The three earnings estimates compiled by S&P Capital IQ predicted -$0.08 per share. GAAP EPS were -$0.16 for Q1 versus $0.22 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 87.7%, 420 basis points worse than the prior-year quarter. Operating margin was -15.3%, 5,100 basis points worse than the prior-year quarter. Net margin was -17.3%, 3,380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $64.1 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $234.0 million. The average EPS estimate is $0.28.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 385 members out of 417 rating the stock outperform, and 32 members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give Tessera Technologies a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tessera Technologies is outperform, with an average price target of $24.83.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.