UPDATE 2-Tessera to close Tel Aviv facility, cut jobs

Wed Nov 14, 2012 2:25pm EST
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* Looking to sell North Carolina plant

* DigitalOptics unit plans to cut about 180 jobs

* Expects annualized operating expense savings of $15 mln to $18 mln

Nov 14 (Reuters) - Tessera Technologies Inc will shutter a plant in Tel Aviv and is looking to sell another in North Carolina as it streamlines operations at its unprofitable digital optics business that sells technology used in cellphone cameras.

The DigitalOptics unit, which accounted for a quarter of Tessera's third-quarter revenue, plans to reduce its workforce by up to 40 percent, or about 180 employees. The job cuts do not involve its manufacturing operations in Zhuhai, China.

Tessera has two businesses -- the intellectual property division, which licenses chip-packaging technology, and the digital optics unit.

The company cut 15 percent jobs at the digital optics unit last year, and later said it will close its development facility located in Yokohama, Japan.

Tessera, however, bulked up the business a few months ago, buying some assets in Zhuhai, China from Flextronics International Ltd for $29 million.

DigitalOptics posted an operating loss of $23.3 million in the third quarter.   Continued...