NEW YORK ( TheStreet) -- Openwave Systems (OPWV) was a big gainer in Thursday's late action after the maker of networking software inked a licensing deal with Microsoft (MSFT - Get Report) and posted a surprise quarterly profit.
The Redwood City, Calif.-based company said Microsoft has agreed to license its entire patent portfolio, which consists of more than 200 patents, including ones related to cloud computing and smart devices. Financial terms weren't disclosed.
Openwave also reported a non-GAAP profit of $9.3 million, or 11 cents a share, on revenue of $52.4 million for the its fiscal first quarter ended in September. The average estimate of analysts polled by
Thomson Reuters was for a loss of 8 cents a share in the quarter on revenue of $34.2 million.
The stock was last quoted at $2.05, up more than 30%, on volume of more than 150,000, according to Nasdaq.com.Openwave said bookings totaled $23.7 million in the quarter, a figure that includes the deal with Microsoft. "Openwave's first fiscal quarter results were mixed; we validated the strength of our intellectual property portfolio by executing a significant licensing agreement, but we are clearly disappointed with our product bookings," said Mike Mulica, the company's CEO, in a statement. "We continue to work closely with our customers and partners to demonstrate the value of our products and technologies." Based on Thursday's regular session close at $1.57, Openwave shares were down more than 25% so far in 2011. The volatile stock hit a 52-week low of $1.17 on Aug. 12, and its 50-day and 200-day moving averages are $1.61 and $1.93 respectively.