Tessera to restructure DigitalOptics business
Tessera Technologies Inc. said Thursday that it is restructuring its DigitalOptics business, which makes camera parts for smartphones, to cut costs.
Tessera, which also provides chip technology for small electronic devices, said it expects the moves to reduce DigitalOptics' yearly costs by $78 million, or 45%, compared with 2012.
Tessera wants to reduce costs as revenue last year fell 8% to $234 million, and its annual loss deepened to $29 million. Its revenue from DigitalOptics was unchanged at about $41 million.
The company has decided to contract out some of the camera module manufacturing it now does and focus on manufacturing its more profitable parts. It's also ending its lens manufacturing, contracting out the making of its designs.
As part of the restructuring, the business will shut down operations at a China facility. It's consolidating manufacturing to a Taiwan factory.
The company did not say if any job cuts would be involved. A company spokesman didn't immediately return a call seeking comment.
Tessera said it expects the moves to results in charges of between $17 million and $23 million, with most of that taken in the first quarter and the rest in the second quarter.
Shares of San Jose, Calif.-based Tessera rose 48 cents, or 2.6%, to $18.70 in morning trading. Shares are down about 14% over the past 12 months.