Shares of Wi-LAN (Wi-LAN Stock Quotre, Chart, News: TSX:WIN, Nasdaq:WILN) are up strongly today after the company announced a deal with Samsung that has caused the company to nearly double its topline guidance for the second quarter.
The company says a licensing deal with Samsung for its freshly acquired Qimonda portfolio will cause its revenue to rise from a previously expected (U.S.) $18.3-million more than $34-million.
“We are pleased to have signed our first licence to the Qimonda portfolio,” said CEO Jim Skippen. “The agreement with Samsung provides a promising start to this licensing program and confirms the value of the Qimonda portfolio. Wi-LAN’s management believes that a significant percentage of the microchips currently being manufactured in the world today most likely are covered by claims associated with the patents in this portfolio. Consequently, our team will be working hard to finalize additional licence agreements for the portfolio, since many companies will likely want to take a licence.”
The “Qimonda portfolio”, which Wi-LAN only announced the acquisition of this morning, includes more than 7000 patents relating to dynamic random access memory, flash memory, semiconductor processes, semiconductor manufacturing, lithography, packaging, semiconductor circuitry and memory interfaces. Wi-LAN says it paid about (U.S.) $33-million for the group of patents and patent applications.
At press time, shares of Wi-LAN on the TSX were up 13.5% to $3.02.