Tessera CEO on Infringement Case, Technology

" Protect verbal bringing the -- develop the NASDAQ this morning Tesoro which specializes in mineralization mirrors. I can say admitted -- devices that level of big word horrible thing. They've proven that good things do come a small packages the company just raised their earnings guidance for the third quarter desperate CEO Hank. -- up doing is now we're for an exclusive interview right here on Fox Business. And both -- we've got to show this this camera mean you are you live really deal. In smaller and smaller and smaller it beyond cameras what else do you do."

" Well we're in PCs cell phones wireless devices and virtually every computer or telephone users are. Technology we -- our technology and 31. Billion chips so every memory module and every computer chip in today is that it."

" But you -- main revenue stream that was from license and that's and you had I think you've had a recent court victory. Against some very big name that's true -- to protect your patents so. That's a little of the money is coming from and and a quarter."

" Right our of our businesses to monetize invention."

" We take an invention we do R&B we product guys that I mentioned we license with a large manufacturers. Sometimes."

" Folks do not want to finalize that infringe on your technology. And when that does happen you do need to move and protect yourself."

" We should mention here as we look at the stock right now that you know you did raise. Guidance for the third quarter just a few million dollars but certainly with the revenue forecast is that because they're hoping they're going to win yet another one victory over the patents because then you're going back. Again. To the commission."

" Right we raised guidance because a semiconductor industry is. Recovery. And those are our licensees you look at the major. Semiconductor manufacturers in the world they're on licensees already. And so the main reason why we raised guidance is chips chip shipments are going up. Then you're in this new business which is consumer optic tent and we raised our forecast there because I licensing revenues runners will."

" Let me show that that screen grab again -- Tom toxic because this is this is this this this Maltese tiny little camera is the new size of the camera. And -- we're comparing that to a larger piece of black is -- I don't think that admitting that it ended you know candidacy but above that black he's as a small little. -- but that is a came right."

" And that was old technology to the big. With the big the big black and the big blob there was eligible to how to help with that like 2000 now though -- shipping today. I know that and a new cameras are just coming in from the marketplace as -- So let's follow wafer level camera you semiconductor. Techniques to manufacture and you make it in very large this gives them one at a time and we can produce a camera like that for less than a dollar. So you can imagine cameras are going to proliferating everywhere you can --"

" And what's amazing about San Jose isn't it nice to be there as a reporter is that that would I was -- Silicon Valley it is stories it was is booming bustling town Lehman was. There was manufacturing plants then ever chip making left and right. Now -- go down there and it's just a ghost town I mean film little lonely right now."

" Yeah well what has happened is innovations dying a death of a thousand cuts in this country."

" And it's not any single -- it happened but you know we've been offshoring and outsourcing our manufacturing."

" And so one of the remaining competitive advantage as the US as the days innovation and even that is in danger we. Past the wrong -- legislation -- have the wrong court cases some quite concerned about our economy when the economy does recover. If it's going to be a jobless recovery because when these large firms -- back employees. Because of the cost of employees in the US I'm afraid a lot of those jobs -- gonna come back in China."

" Taiwan and Japan and not and you know what why area."

" Since school recently got into some consumer products like the foot camera thing I like that is that what you're thinking as your model along that would. Why because you've been like you said manufacturers and now you're talking about. Getting into consumer product there."

" licensing strictly a licensing company for about ten years. We only -- manufacturing a perfect the manufacturing techniques so weakened dollar turnkey franchise. To a new -- As far as cameras we envisioned cameras proliferating cell phones which they did here. So we -- friends. Yeah we thought that be a million unit market it is. But what we didn't anticipate that we are going to drive apostle loans that have a billion you know market it's going to be a multibillion you know market because these are going to -- Reagan toys cars security. Cameras are going to be gamers everywhere but."

" I know topped the CEO of tests that they are -- Well I think if you're telling me and yet analysts say today's thanks for coming and a -- journey arts greats is Cantonese are and about six."