Thursday's Small-Cap Winners and Losers

Research Frontiers (REFR) was rocketing nearly 30% after Japan's Hitachi Chemical began shipping light-control film using Research Frontiers' suspended-particle-device technology to Innovative Glass. Both Hitachi and Innovative Glass are licensing the technology -- which allows for electric control of light and heat passing through windows and doors, among other things -- from the Woodbury, N.Y., company. Shares were trading up $1.84 to $8.23.

New Jersey's NexMed (NEXM) soared after the drugmaker announced that collaborator Novartis (NVS) began dosing test subjects for advanced-phase testing on its nail fungus treatment, NM100060, for which NexMed is handling a number of developmental and commercial responsibilities. NexMed was gaining 36 cents, or 35.4%, to $1.37. Switzerland-based Novartis was recently trading up 68 cents, or 1.2%, to $58.37.

Tollgrade Communications, (TLGD) which makes remote system-monitoring products, surged after narrower fourth-quarter earnings nonetheless smashed Wall Street estimates. Excluding a restructuring charge, the Pittsburgh-based company had a profit of $1.9 million, or 14 cents a share, on sales that wilted 9% to $16.6 million. On a per-share basis, this flat-lines with last year's $4.4 million in income, but analysts polled by Thomson Financial were looking for 7 cents a share on sales of $16.7 million. Shares were gaining $1.60, or 15.9%, to $11.66.

Magma Design Automation (LAVA), which develops electronic design automation software, jumped after it said a U.S. District Court ruled Synopsys (SNPS) and IBM (IBM) jointly own two of the three patents at issue in the litigation between Magma and Synopsys. The court ruled that the third patent is owned solely by Synopsys. IBM is one of Magma's technology partners.

Synopsys said the court determined that Magma doesn't have any ownership interest in the patents or in any of the fixed-timing inventions that are at the core of the claims against Magma. Magma has also been ordered to transfer to Synopsys and IBM a number of additional patent applications that had been pending throughout the world, Synopsys said. Magma was rising $1.52, or 17.9%, to $10.02. Synopsys slipped 31 cents, or 1.2%, to $26.29. IBM was down $1.03, or 1%, to 98.12, in recent trading.