Openwave Systems shares are trading sharply higher in late trading Thursday after disclosing that Microsoft has agreed to license the company's patent portfolio. Openwave says that Microsoft "becomes the first company to license Openwave’s portfolio of approximately 200 patents, including several foundational patents covering smart device and cloud technologies, among others."
CEO Mike Mulica said in a statement that the deal "demonstrates the importance of Openwave’s patent portfolio, as well as Openwave’s ability to execute on its previously announced patent licensing strategy."
The company points out that in August it filed patent infringement claims against both Apple and Research In Motion before the International Trade Commission and in federal court in Delaware.
Specific terms of the Microsoft licensing deal were not disclosed.
Meanwhile, Openwave this afternoon also reported financial results for its fiscal first quarter ended September 30. The company reported revenue of $52.4 million, up from $35.2 million in the June quarter and $41.5 million a year ago, and ahead of the Street at $34.3 million. Bookings were $23.7 million, some of that from the Microsoft licensing deal. The company ended the quarter with $66.6 million in cash and investments. The company posted a non-GAAP profit of 11 cents a share; the Street had expected a loss of 7 cents.
Mulica said in a statement that Q1 results "were mixed," noting that the company was "clearly disappointed with our product bookings."
What saved the day, obviously, was the Microsoft deal.
OPWV in late trading is up 48 cents, or 30.6%, to $2.05.
