Cramer Still Believes in Tessera Technologies (TSRA)

On May 26th CNBC's Mad Money Jim Cramer gave a bullish call on Tessera Technologies (NASDAQ: TSRA). Since then the stock has jumped 54.63%, from $20.17 to $31.19, and corrected itself in the last few days back to $20.84, because of the 4Q guidance that was worse than public expected.

Jim Cramer needed to re-think his position in this stock, so he decided to call TSRA's CEO Hank Nothhaft to the show and give him a chance to explain this sudden change in the guidance.

Tessera Technologies (TSRA) management decided to give lower guidance because of the volume discount pricing contracts and their impact on its revenues. Mr. Nothhaft said that the management explained these volume discount pricing contracts, but could not quantify them because they wanted to preserve the privacy of the clients.

Jim Cramer gave credit to TSRA CEO for coming on the show and said that he still thinks that the company is cheap. Tessera Technologies (TSRA) CEO Hank Nothhaft is also bullish on the stock.