Xperi Corporation XPER reported third-quarter adjusted earnings of 30 cents per share, missing the Zacks Consensus Estimate by 6 cents.Since the third-quarter earnings release on Nov 2, the share price is down 8.0%. Notably, on a year-to-date basis, the company’s shares have lost 53.2% compared with the 23.5% loss of the industry it belongs to.The poor results were due to weakness in a few of its markets, namely imaging. The company witnessed increasing internal competition for its low-end products. Other problems which negatively impacted third-quarter results were customer-specific issues, competition in the mobile market and expected execution of certain new licenses.However, Tessera has intensified its IP licensing efforts and is currently working with a number of semiconductor manufacturers and OSATs to enhance its portfolio of advanced packaging and interconnect technologies. Moreover, the company remains confident about a favorable resolution of the Broadcom matter.RevenuesTessera’s revenues of $88.5 million increased 41.8% year over year. However, revenues were below the company’s guidance range of $90-$97 million.MarginsOwing to high percentage of licensing revenues, Tessera usually generates strong gross margins. Accordingly, Tessera’s third-quarter gross margin was 98.1%, down 30 basis points from 98.4% reported in the year-ago quarter.Tessera’s operating expenses (research, development and other related costs & selling, general and administrative) were $59.8 million, up 183.4% year over year. Also, as a percentage of sales, both the expenses increased on a year-over-year basis.Net IncomePro forma net earnings were $15.9 million or earnings of 30 cents per share compared with $28.6 million or 57 cents in the year-ago quarter.On a GAAP basis, net loss was $12.1 million or a loss of 24 cents per share against net earnings of $23.8 million or of 48 cents in third-quarter 2016.Balance Sheet and Cash FlowAt quarter end, cash, cash equivalents and short-term investments were $1.49 billion, up from $1.28 billion from the prior quarter.Dividend/Share RepurchaseDuring the quarter, the company approved a regular quarterly dividend of $0.20 per share, payable on Dec 13, 2017, to stockholders of record on Nov 22, 2017.During the third quarter, the company repurchased approximately 0.4 million shares for an aggregate amount of $10 million. As of Sep 30, 2017, it still had approximately $148.2 million remaining under its current repurchase program.4Q GuidanceFor the fourth quarter of 2017, Tessera expects GAAP revenues in the range of $83-$138 million. GAAP loss per share is expected between (30) cents and 33 cents and non-GAAP loss per share is projected in the range of 29-78 cents.For 2017, the company expects revenues in the range of $330-$385 million, down from $370-$445 million.Tessera Holding Corporation Price, Consensus and EPS Surprise Tessera Holding Corporation Price, Consensus and EPS Surprise | Tessera Holding Corporation QuoteOther Stocks to ConsiderCurrently, Xperi has a Zacks Rank #5 (Strong Sell). A few better-ranked stocks in the broader technology sector are NVIDIA Corporation NVDA and SMART Global Holdings, Inc. SGH, each sporting a Zacks Rank #1 (Strong Buy), while Applied Materials, Inc. AMAT, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Wall Street’s Next AmazonZacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.Click for details >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tessera Holding Corporation (XPER): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Applied Materials, Inc. (AMAT): Free Stock Analysis Report SMART Global Holdings, Inc. (SGH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research