Tessera IP Pricing

Seeking Alpha: Tessera's CEO Hank Nothhaft disclosed the company's IP pricing:

"...we have today basically two types of intellectual property, one is infrastructure IP and one is designing IP. So the infrastructure IP centers around sensor packaging which is our MVP product range the way for level optics and if you get somebody there license both of us from you like NanoTech and Qtech the both combine and they can actually manufacture wafer-level cameras. And so, in that environment we are able comment upfront license fees and than we get a per unit royalty pretty low and then we also get recurring revenues and royalties from the lens stack from the wafer-level optics side of it, and so in the probably the most fair balance case lease value provided.

We are in the $0.02 to $0.03 range of the low end. And it can get over $0.20 under certain environment. I am talking about the infrastructure IP side of it. And then the small optic side is interesting because we’re rolling out more and more features and therefore we are commanding more and more value added, and so it does sort of stack on itself. So, we are able to come back now the extended after field capabilities with a FotoNation sort of post imaging processing capabilities and really creates an excitement in the marketplace and we have a quite a platform there.

And so, once again, I can give a broad range on how meaningful it would be, but certainly towards a low end of that activity would be something in the $0.10 range and certainly if there licensing a bunch of features and whole prior formula can be more to $0.25. So, theoretically if you have somebody building wafer-level cameras using your technology as well as ordering and using EDAP and some post imaging processing. You could get $0.40 under certain circumstances are greater. I am not saying that we are but so the range would be anywhere from a few cents to approaching half hours depending on high integrated and how full for us one of our licenses might be in using our products.

I must say that deeper we get imaging optics and looking at now its insiders and what's going on there. We feel really great about the industry, the segment choice and the potential for us to build the meaningful business there."