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Tessera Tech posts 3Q profit, sees weak 4Q sales

Tessera Technologies Inc. said Thursday it made a profit in the third quarter, reversing a year-earlier loss as sales improved and costs fell. But the company's fourth-quarter sales outlook fell below analyst expectations, sending shares down nearly 10 percent in aftermarket trading.
/ Source: The Associated Press

Tessera Technologies Inc. said Thursday it made a profit in the third quarter, reversing a year-earlier loss as sales improved and costs fell. But the company's fourth-quarter sales outlook fell below analyst expectations, sending shares down nearly 10 percent in aftermarket trading.

The company, which develops miniaturization technology for electronics makers, earned $12.1 million, or 24 cents per share. That compares with a loss of $5.4 million, or 11 cents per share, a year earlier.

Excluding charges for stock-based pay and other one-time items, Tessera said it would have earned $19.2 million, or 37 cents per share in the latest period.

Revenue grew 4 percent to $66.1 million.

Results topped Wall Street forecasts. Analysts polled by Thomson Reuters expected earnings of 21 cents on revenue of $65.7 million. Analysts typically exclude special charges.

For the quarter ending in December, Tessera expects revenue of $60 million to $62 million. That would represent at least a 10 percent drop from the year before, when a nonrecurring fee from Motorola Inc. helped boost revenue to $69.1 million.

Analysts are looking for $70 million in sales.

Shares closed earlier up 6.3 percent at $26.86, but tumbled $2.56, or 9.5 percent, to $24.40 in after-hours trading.