Tessera updates on revenue guidance

Revenue from the Intellectual Property segment is expected to range between $42.0 million and $43.0 million, including approximately $25 million in past production payments. DigitalOptics segment revenue is expected to be in the range of $8.0 million to $10.0 million. Products and services revenues are expected to be in the range of $6.0 million to $7.0 million. DigitalOptics royalties and license fees are expected to be in the range of $2.0 million to $3.0 million. Non-GAAP operating expenses for the fourth quarter 2012 are expected to range between $51.0 million and $53.0 million. This range excludes litigation expenses and re-structuring charges of between $4.0 million and $5.0 million that the Company expects to incur in the quarter as a result of the DigitalOptics segment staff reductions and facility dispositions designed to focus efforts on its core MEMS camera module business, as previously announced on Nov. 14, 2012. GAAP operating expenses for the fourth quarter 2012, excluding litigation expense and the aforementioned DigitalOptics charges, are expected to range between $61.0 million and $65.0 million. Included in the GAAP operating expenses are stock-based compensation, which is expected to range between $4.0 million and $5.0 million, and amortization, which is expected to range between $6.0 million and $7.0 million. The Intellectual Property segment's litigation expense in the fourth quarter of 2012 is expected to be higher than the third quarter 2012 expense of $9.7 million due to increased activity in ongoing cases.