ShellCase today announced that it has licensed its packaging technology for integrated circuits to German firm Delsy Electronic Components AG, which develops of fingerprint reading sensors.

Delsy will be using ShellCase's ShellOP WLCSP technology.

ShellCase and Delsy have had a production agreement since 2000. But the new agreement will make it possible for Delsy to manufacture its own packaging.

Until the completion of the plant in Germany, ShellCase will continue to make the components for Delsy. According to the company, the licensing agreement transaction is worth several million dollars.

ShellCase was founded in 1993. It specializes in developing and producing tiny silicon chip packaging.

Its packaging protects silicon chips from environmental hazards such as dirt, dust and moisture.

The miniature package wraps the chip in two superthin layers of transparent glass. The packages are designed for the digital photography, data communications and portable electronic appliances markets.

ShellCase is traded on the Vancouver stock exchange, after having raised $2 million in a public issue in 1994. Among its shareholders are Clal Industries & Investments (25%) and the Israel Infinity Fund (20%) from whom the company raised $11 million after its issue in Canada. Other shareholders are the Ampal American Israel Corporation (Nasdaq:AMPL) (13%), Jafco Ventures (10%) and Motorola (NYSE:MOT) (7.5%).

In the first half of 2001 the company posted revenues of $2.4 million, up 130% from the $1.06 million in the second half of 2000.

At the same time the company saw a sharp rise in losses, which rose to $3.4 million, due to a 237% leap in R&D spending, which came to $1.39 million. Losses in January through June of 2000 totaled $2.2 million. Losses in the entire year 2000 came to $5.5 million.

Shlomo Oren, CEO of ShellCase, said in a Robertson Stephens conference two weeks ago that since May of 2002 ShellCase posted a growth of 150% in shipments of packaging materials. Oren believes revenues for ShellCase this year will reach $7 million, and $22.3 million in 2002.

American investment bank SG Cowenled a $20 million private placement for ShellCase in April of this year, according to $50 million after the money.

Last week a news story in TheMarker.com reported that ShellCase has launched a private $10 million to $20 million issue in an effort to finance the company¿s plans to expand production due to increasing demand for its products.

The company has signed agreements with Given Imaging and with the Japanese firm Sanyo, as well as with another 15 companies in the semiconductors sector.

Last month the company announced an $8 million investment in the expansion of its Jerusalem plant.