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  "documentTitle": "Tessera Technologies Inc. (TSRA)",
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  "authorName": "Starboard Value",
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  "presentationDate": "2013-04-30 00:00:00",
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  "notes": "Uses a bar chart to visualize historical and projected losses, and a text block to highlight contradictory management statements.",
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      "text": "Even if Tessera were to achieve their current cost reduction targets in DOC, we estimate that DOC would still generate segment operating losses of $95 million in 2013, including corporate overhead.",
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      "kind": "chart",
      "text": "Digital Optics Historical and Projected Operating Losses",
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      "text": "Tessera has continued to make conflicting commitments in its recent investor presentation: \"Tessera is committed to (DOC) but will not fund entire investment. Limit additional net spending to $50mm.\" \"Tessera is committed to the market but will not fund entire investment. Break-even target mid-2015, ~$100m of incremental investment.\"",
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      "text": "On March 21, 2013, the Company announced its second DOC restructuring only four months after its first restructuring announcement. This restructuring will include exiting the camera module and lens manufacturing operations of the Company's DOC segment and reducing general and administrative expenses. Parts of this restructuring plan involve shutting down businesses that were acquired less than one year ago. While these changes are a step in the right direction, they are inadequate. Even if Tessera were to achieve their current cost reduction targets in DOC, we estimate that DOC would still generate segment operating losses of $95 million in 2013, including corporate overhead. This estimate excludes cash restructuring costs, so cash losses will be even higher than that. In addition, the announced restructuring does nothing to address years of poor financial performance in Tessera's IP segment.",
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      "text": "segment operating losses: $94.8 million",
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      "text": "In response to Starboard's involvement, Tessera has begun to make reactive changes, but the changes that have been announced thus far are insufficient.",
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      "kind": "quote",
      "text": "“restructuring will reduce spending in DOC...but not in the Company’s Intellectual Property business.” — March 21, 2013 Press Release.",
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      "kind": "source-note",
      "text": "(1) Figures exclude expected cash restructuring costs... (2) Assumes 35% of corporate overhead is allocated to IP Segment and 65% is allocated to DOC segment...",
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      "text": "Recently Announced Changes Are Insufficient",
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