SAN JOSE -- Tessera Technologies today raised its financial guidance for the first quarter of 2005. The company also announced a licensing deal with Fujitsu.

Tessera now expects first quarter revenue in the range of $27.3 million to $27.5 million, as compared to previous guidance of $21.5 million to $22.0 million.

Ina press release, Tessera chairman and chief executive Bruce McWilliams said, "We are revising our guidance upwards based upon the impact of new licenses signed, as well as the overall good performance from our existing licensees in the past quarter, particularly related to devices used in computing and in personal communications."

Also, today, the company signed a technology licensing agreement with Fujitsu covering chip-scale packaging in ASICs, ASSPs and system-on-chips.

The technology includes chip-scale and multichip package types. No financial details were disclosed.

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PHOENIX -- Suntron Corp. is using Applied Materials, claiming unfair business practices on the part of the maker of semiconductor gear. Suntron seeks over $20 million in damages.

In the suit, Suntron claims it spent millions of dollars on raw materials and other inventory-related costs as result of false promises of business from Applied Materials. The suit alleges a other unlawful acts and unfair business practices as well.

Suntron provided more than 7,000 different finished products to Applied Materials, Suntron said in a press statement. The lawsuit claims that Suntron has been left with more than $18 million worth of unused and obsolete inventory.

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MINNEAPOLIS -- Nortech Systems Inc. reported net sales of $20.4 million for the fourth quarter ended Dec. 31, a 30% increase over last year. Net income was $202,857, versus a net loss of $155,541.

For the fiscal year, net sales at the EMS provider were up 25% to $72.7 million. Net income for year was $587,329, beating guidance, versus $633,448.

"We are very pleased with these record-setting revenue levels for Nortech in the fourth quarter and for the entire year," said Mike Degen, president and CEO. "We will use this opportunity to leverage these strong results to expand our customer base and continue to invest in the Nortech brand and our infrastructure."

Throughout the year margin pressure was strong due to higher energy costs, increased commodity prices and international competition.

Nortech guided for fiscal 2005 revenues to increase 8 to 10%, to $78 million to $80 million. Earnings per diluted share for 2005 are expected to be 30 to 35 cents.

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