{
  "docId": "019dd923-622b-71dc-a6d9-a5e0438c9deb",
  "docSlug": "15bf909b6013",
  "documentTitle": "Tessera Technologies Inc. (TSRA)",
  "authorId": "03_Starboard_Value",
  "authorName": "Starboard Value",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2013-04-30 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 10,
  "pageCount": 80,
  "prevPage": 9,
  "nextPage": 11,
  "slideType": "problem_statement",
  "function": "diagnose_problem",
  "density": "overcrowded",
  "nDataPoints": 16,
  "notes": "The slide uses two bar charts to contrast the loss-making DOC segment with the declining profitability of the IP segment.",
  "elementsJson": [
    "headline_text",
    "subtitle_text",
    "bullet_list",
    "bar_chart_grouped",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6d9-a5e0438c9deb/10",
  "deckHref": "/decks/019dd923-622b-71dc-a6d9-a5e0438c9deb",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6d9-a5e0438c9deb.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6d9-a5e0438c9deb#slide-10",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Excluding corporate overhead, cumulative operating losses over the past five years have amounted to $273.2 million or $5.23 per share.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-ee36-760b-92af-ebe93d9f0619",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.42,
        "x": 0.52,
        "y": 0.26
      },
      "kind": "chart",
      "text": "DOC Financials",
      "attrs": null,
      "subkind": "bar-grouped",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4d130437-36f7-4015-86f0-ba72d0dbf80b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.42,
        "x": 0.52,
        "y": 0.56
      },
      "kind": "chart",
      "text": "IP Financials",
      "attrs": null,
      "subkind": "bar-grouped",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d2be2111-5d73-404e-a0b0-db31b9c3555e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.55,
        "w": 0.45,
        "x": 0.08,
        "y": 0.28
      },
      "kind": "list",
      "text": "DOC has never been able to achieve sustainable revenue growth and operating losses have mounted over the years due to increasing operating expenses. Excluding corporate overhead, cumulative operating losses over the past five years have amounted to $273.2 million or $5.23 per share. This does not include cash spent on acquisitions and capital expenditures over that time frame which was at least $243.8 million or $4.66 per share. Collectively, this amounts to $9.90 per share in losses and investments. Although IP is currently profitable, its financial performance and profit margins have deteriorated substantially over the past few years. From 2009 to 2012, revenue declined by 28.5% or $76.8 million while segment operating expenses increased by 51.7% or $39 million, resulting in a staggering decline in segment operating income of $115.8 million.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0571c1d5-2f32-48fa-a296-2779997ca9b5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Segment EBIT: $273.2 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd952-ee36-760b-92af-eccb6a3127fc",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.85,
        "x": 0.08,
        "y": 0.18
      },
      "kind": "paragraph",
      "text": "An analysis of the Company's two business segments, Intellectual Property (\"IP\") and Digital Optics Corporation (\"DOC\"), reveals that DOC has been the primary driver of the Company's poor operating performance, but IP's financial performance has also deteriorated.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c5b272fb-bec0-440c-9c6c-f421baa87436",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.6,
        "x": 0.08,
        "y": 0.88
      },
      "kind": "source-note",
      "text": "Source: Tessera Form 10-K filing. (1) Assumes 35% of corporate overhead is allocated to IP Segment and 65% is allocated to DOC segment (based on Tessera's investor presentation filed on 4/25/2013).",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0392e7d7-b132-43bf-b112-bd46b340f485",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.6,
        "x": 0.08,
        "y": 0.12
      },
      "kind": "title",
      "text": "Weak Historical Segment Financial Performance",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c800fdcc-5368-4eb7-825c-fe4d725ce728",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [],
  "loops": [
    {
      "to": 10,
      "from": 8,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "b549e0bb-f1f9-409b-9c78-0c618b17cb04",
      "evidence": "The document presents a cost of inaction loop on pages 8-10.",
      "position": 0,
      "objective": "What is the cost of inaction for Tessera's shareholders?",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.8,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}