Zi soars on deal that opens European doors
CALGARY, Oct 21 (Reuters) - Zi Corp. (Toronto:ZIC.TO - news)(NasdaqSC:ZICA - news) continued its sizzling market streak on Thursday after the software developer announced a deal with telecoms equipment supplier Alcatel (NYSE:ALA - news) that opens doors to the European market.
Shares in the Calgary-based firm touched C$13.25 in morning trade on the Toronto Stock Exchange before slipping back to C$12.35, a gain of C$1 or nearly 9 percent. On Nasdaq, the stock rose 19/32 to $8-1/4.
A string of licensing deals this summer helped push the stock in Toronto to a 52-week high of C$16.50 in late August, following a steady climb from the year's low of C$1.23 in late June.
Zi develops software that reads and writes 13 different languages, including Chinese, Japanese and Korean, with such devices as mobile phones, pagers and set-top boxes that couple computers with televisions.
Under the deal with Paris-based Alcatel, struck on Wednesday, Zi software will be incorporated into Alcatel products including digital phones. Until now, the bulk of Zi business stemmed from deals struck for Asian markets, notably China.
``This is extremely important because this is one of the first recognitions of our capability in languages outside of Chinese,' Zi Chief Executive Michael Lobsinger told Reuters.
``We will have a total of 23 languages that we can offer within six weeks. So we're going to go where the (manufacturers) want us to go.'
A morning trade halt in Toronto was lifted after Zi released the news. ``It's so material to our company we had to put it out right away before it started to filter out into the marketplace,' Lobsinger said.
Revenue from the Alcatel deal is not expected for one to two quarters. Zi has recorded royalties in its third quarter from a licensing deal struck with Telefon AB L.M. Ericsson for cellular phones launched in China in August. Those results, for the quarter ending September 30, are expected in late November.
($1=$1.48 Canadian) |
