jumped 12% Tuesday after the China-based company announced a digital media partnership with
Comtech, a provider of design systems for the technology manufacturing sector in China, will license software technology from Microsoft's IP Ventures program and use its source codes to develop systems for digital media projects.
The company said the deal will "dramatically expand" its capacity to provide systems for the digital media market, with a focus on portable media players, IPTV set-top boxes, game consoles, global positioning systems and smartphones.
"We are very pleased to be one of the first Chinese-based companies to license key software technology and have access to selected source codes directly from Microsoft," said Jeffrey Kang, Comtech's chairman and CEO. "By leveraging Microsoft's extensive R&D and IP Ventures teams, and combining their software with our module design solutions, we will be able to effectively improve our overall competitive positioning, especially in digital media."
For its part, Microsoft said the agreement will allow it access to Comtech's customer base and better address consumer-related opportunities in the region.
Shares of Comtech recently were up $1.86 to $16.72. Earlier in the day, the stock hit an intraday 52-week high of $17.04, surpassing the old mark of $16.70 on May 26.