Tessera Scales Down its Imaging and Optics Activity

EETimes: Tessera announced reorganization of its Imaging & Optics segment including a reduction of its Imaging & Optics employees that is anticipated to be up to 15% of the company's worldwide employee base.

Imaging & Optics revenues were $9.2M in Q4 and $37.3M for full year 2010. For Q1 2011 Imaging & Optics revenues are expected to be approximately $11M to $12M, out of that license fees revenues are expected to be approximately $6.5M to $7.0M and products and services revenues are expected to be approximately $4.5M to $5.0M. This compares to Imaging & Optics royalties and license fees revenues of $3.1M and products and services revenues of $5.4M in the Q1 2010, which totaled $8.5M for this segment.

I've received an email giving some background on the recent Tessera steps:

"This is in a series of events as Tessera withdraws from the segment:

1. Oct 28 - As a part of it's third quarter earnings release, Tessera Announces Withdraw from Wafer Level Camera Business

2. Nov 11 - Mike Bereziuk, EVP of Imaging and Optics. Leaves Company -

http://finance.yahoo.com/news/Tessera-Announces-Executive-bw-3146267033.html?x=0&.v=2

3. Jan 24 - Bruce McWilliams (original CEO who started Imaging and Optics acquisitions and created division, later replaced by Hank Nothhaft) resigns from Tessera's board -

http://finance.yahoo.com/news/Tessera-Announces-the-bw-4193890503.html?x=0&.v=1

4. Jan 27 - Tessera starts laying off employess in I&O. While "15% of Tessera worldwide base" is affected, if taken in just the percentage in I&O the total percentageis much higher just within the I&O group."