Tessera Technologies' Shares Soared: What You Need to Know


Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of miniaturization specialist Tessera Technologies (NAS: TSRA) are looking much larger today, up by as much as 27%, after the company announced that Korean conglomerate Samsung has renewed its license agreement.

So what: The original license agreement between the two dated back to Jan. 1, 2005, and included a renewal option, which Samsung has now opted to exercise. The term of the license has now been extended all the way to May 17, 2017.

Now what: Tessera CEO Robert Young expressed that he is thoroughly pleased to extend the long-term relationship between the companies. The terms of the agreement grant Sammy a non-exclusive license to use Tessera's compliant chip technology, and Samsung will enjoy a reduced royalty rate on the extension. Samsung is a huge player in the world of consumer electronics, and its licensing agreements can help keep some smaller players afloat, such as another recent renewal with Universal Display (NAS: PANL) .

Interested in more info on Tessera Technologies? Add it to your watchlist byclicking here.

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