Shares of Peerless Systems (PRLS) were among technology's losers Monday, slumping 19% after the imaging-products company said that a vendor in a system-on-chip development pact has decided that it won't move into a second phase of the agreement with Peerless.
"While there appears to be significant interest from original equipment manufacturers, in the IP from Peerless, the vendor in the agreement has elected not to continue into the production phase of the project," Peerless said. Peerless originally signed the non-exclusive development agreement with the vendor on March 30.
The termination of the agreement will result in a reduction of $200,000 to $300,000 in projected service revenue for the current fiscal quarter, which ends July 31, Peerless said. The termination, meanwhile, is expected to cut revenue by $1.5 million during the current fiscal year, which ends Jan. 31. Peerless shares were trading down $1.28 to $5.34.
Nokia (NOK - Get Report) and Siemens (SI) moved higher Monday after the companies agreed to merge their wireless network businesses. The joint venture, which will be called Nokia Siemens Networks, will create a telecom-equipment powerhouse generating revenue of about $20 billion a year."This joint venture is an important step to strengthen our position in the market sustainably and to enable us to offer the best state of the art converged technologies and services to our customers," Nokia said in a press release. Shares of Nokia recently were trading up 28 cents to $20.25, while shares of Siemens jumped $5.03 to $84.83. Shares of Syniverse Holdings (SVR) rose 4% after the networking-services company agreed to acquire Interactive Technology Holdings for up to $45 million. The deal will consist of $38 million in cash and possible earn-outs that could be worth as much as $7 million in cash. "The acquisition of ITHL is an important step in Syniverse's strategic plan for global expansion and product development," Syniverse said. The acquisition is expected to add to earnings during 2006. Shares of Syniverse were up 54 cents to $15.59.