LONDON Innovision Research & Technology plc (Cirencester, England), a pioneer of near-field communications (NFC) intellectual property, has announced that is has signed a contract with a semiconductor company that could bring in $10 million over several years.
Innovision signed up NXP BV (Eindhoven, The Netherlands) as a licensee for its Gem NFC technology in May 2009. The company has now announced a deal with "another global leading semiconductor corporation" for the use of its NFC IP in their range of chips targeted at mobile handsets and other consumer electronic products incorporating connectivity solutions.
Innovision has not disclosed the name of the semiconductor company, but said that license and development services revenue would be in excess of $2 million in this financial year. The company expects direct revenues in excess of $10 million over several years from a combination of license, development and royalty income.
"Winning such a major license and royalty deal for our NFC IP with such a leading semiconductor corporation at the start of our new fiscal year is tremendously encouraging," said CEO David Wollen, in a statement. "There are signs of great activity in the NFC world and this win should secure our IP into a significant proportion of the NFC handsets in years to come."
Wollen added: "In addition to a strong royalty stream based on expected handset shipments it also provides a foundation on which to build our tags and peripherals business for applications that will interact with the phones using NFC."
Innovision shares are traded on the Alternative Investment Market of the London Stock Exchange and the price rose 13 percent on the news on Tuesday (April 13) to 17.5p before settling back to 16.9p, up 9 percent.
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