MOSAID Technologies Inc.
TSX : MSD

MOSAID Technologies Inc.

April 17, 2009 08:30 ET

MOSAID Extends NXP's Patent License and Signs New Wireless Agreement

Provides update on Qimonda

OTTAWA, ONTARIO--(Marketwire - April 17, 2009) - MOSAID Technologies Inc. (TSX:MSD) today announced that it has granted a patent license agreement extension to NXP B.V. of the Netherlands. MOSAID has also signed a five-year running royalty patent license agreement with an unnamed U.S.-based provider of wireless networking equipment.

"Signing these agreements in challenging economic times demonstrates both the strength of our patents and the growing success of our licensing diversification strategy," said John Lindgren, President and Chief Executive Officer, MOSAID. "The agreement with NXP fulfills a key objective for fiscal 2009, as it marks MOSAID's second opportunity to renew a term license, and once again we succeeded in signing the agreement with no lapse in coverage."

"The new wireless agreement - our sixth deal since acquiring this valuable portfolio of intellectual property two years ago - shows that our wireless patents are essential to a broad range of Wi-Fi enabled products, including handsets, enterprise and consumer networking equipment, as well as laptops," said Lindgren.

The agreement with NXP extends NXP's license under MOSAID's patents for embedded Dynamic Random Access Memory (DRAM) used in its semiconductor products. The amended agreement adds an additional five years, on the same terms and conditions, to the five-year, running royalty patent portfolio license agreement entered into by Koninklijke Philips Electronics N.V. (Philips) in April 2004. In 2006, Philips established its semiconductor businesses as a separate company, NXP B.V., which assumed the patent license agreement with MOSAID. The new five-year term extends the agreement to April 30, 2014.

In addition, MOSAID has signed a running royalty wireless patent license agreement with a U.S.-based maker of enterprise wireless local area network (LAN) equipment. The company's wireless networking products, including enterprise access points, operate in accordance with the IEEE 802.11 or Wi-Fi family of standards, and are now licensed under MOSAID's patents for a five-year term that began on April 15, 2009.

Update on Qimonda

MOSAID also announced that Qimonda AG (Qimonda), which is in insolvency protection, has terminated the patent licensing agreement between the two companies. The six-year agreement came into effect on July 1, 2006. As previously stated, MOSAID has credit insurance that covers the Company for four quarterly payments at 90%, up to and including the second quarter of fiscal 2010. Other than through insolvency proceedings, MOSAID does not anticipate receiving future amounts from Qimonda, resulting in a materially adverse impact on the Company.

Despite Qimonda's insolvency, MOSAID is maintaining its guidance for revenue and pro forma income for the fourth quarter of fiscal 2009 and the full fiscal year. The Company anticipates continued revenue growth going forward, and plans to offer revenue and pro forma income guidance for the first quarter of fiscal 2010 and the full fiscal year on June 25, 2009.

About MOSAID

MOSAID Technologies Inc. is one of the world's leading intellectual property companies. MOSAID develops semiconductor memory technology and licenses patented intellectual property in the areas of semiconductors, and wired and wireless communications systems. MOSAID counts many of the world's largest technology companies among its licensees. Founded in 1975, MOSAID is based in Ottawa, Ontario. For more information, visit www.mosaid.com.

Forward Looking Information

This document and certain other public documents incorporated by reference in this document, contain forward-looking statements to the extent they relate to MOSAID or its management, including those identified by the expressions "anticipate," "believe," "foresee," "estimate," "expect," "intend," "could," "may," "plan," "will," "would" and similar expressions. Similarly, statements in this document that describe MOSAID's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. These forward-looking statements are not historical facts, but rather reflect MOSAID's current expectations regarding future events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially from those in such forward-looking statements. Assumptions made in preparing forward-looking statements and financial guidance include, but are not limited to, the following: MOSAID's continued expansion of its patent portfolio and of its opportunities for future patent licensing revenue as a result of MOSAID's acquisition of patents from third parties and from development of new inventions; DRAM manufacturers continuing to infringe MOSAID's patents; the timing and amount of MOSAID's litigation expenses; MOSAID's ability to sign new patent licensees; current assumptions as to the identification of products that are unlicensed to MOSAID's wireless patents; and the timing and amount of MOSAID's Research & Development expenses.

Factors that could cause actual results to differ materially from expected results include, but are not limited to, the following: the extent of embedded DRAM proliferation in the System-on-a-Chip markets; legal rulings and/or regulatory investigations or complaints having an adverse impact on the validity, enforceability, potential royalty rates, and strength or breadth of coverage of MOSAID's essential and/or nonessential patents (including, but not limited to, adverse results from litigation or proceedings in patent offices and government regulatory agencies in various countries around the world); judicial, legislative or regulatory changes that impair the ability of patent holders to earn licensing revenues; economic, social, and political conditions in the countries in which MOSAID or patent licensees operate, including security risks, health conditions, possible disruptions in transportation networks and fluctuations in foreign currency exchange rates; non-payment or delays in payment by, or insolvency of, licensees or other debtors; variability in patent licensees' sales of licensed products, failure to maintain and enforce MOSAID's existing patent portfolio, or failure to obtain valuable patents as a result of research and development activities, or failure to acquire valuable patents from third parties; MOSAID's ability to recruit and retain skilled personnel; change in MOSAID's financial position; consolidation of MOSAID's licensees; natural events, such as severe weather and earthquakes in the locations in which MOSAID or patent licensees operate; and changes in the tax rate applicable to MOSAID as the result of changes in the tax law in the jurisdictions in which profits are determined to be earned and taxed, the outcome of tax audits and the ability to realize deferred tax assets.

MOSAID assumes no obligation to update or revise any forward-looking statements. Additional information identifying risks and uncertainties affecting MOSAID's business and other factors that could cause MOSAID's financial results to fluctuate are contained in MOSAID's Annual Information Form, under the section entitled "Risk Factors," and in MOSAID's other public filings available online at www.sedar.com.

Contact Information

  • Investor and Media Inquiries:
    MOSAID Technologies Inc.
    Michael Salter
    Director, Investor Relations and Corporate Communications
    613-599-9539 x1205
    salter@mosaid.com