Canada's Certicom shares rocket on recent deals
(Figures U.S. unless otherwise noted)
TORONTO, Dec 3 (Reuters) - Buoyed by a recent licensing deal
and market enthusiasm for the wireless sector, encryption
software developer Certicom Corp. <CIC.TO> hit a new 52-week
stock high on Friday.
Shares in the Toronto area-based firm added C$8.95 on the
Toronto Stock Exchange to close at C$59, soaring above this
year's previous peak of C$52.50.
Its stock has added C$15.25, or 35 percent, from the
TSENovember 26 close of C$43.75.
Certicom sells security software and consulting services to
manufacturers of wireless software and hardware systems,
developers of hand-held appliances and electronic business
systems.
"It's just a general indication of where the direction of
this stock is heading and the kind of deals they have," said
Paul Lechem, analyst at CIBC World Markets in Toronto.
"Where the stock goes from here and what route it takes
that's a little less clear, but I think, certainly, that
there's a future ahead of this company."
Certicom announced on Wednesday a licensing deal with San
Diego, California-based Qualcomm Inc. <QCOM.O>, which sells
wireless phones. The details of the agreement weren't released,
but Qualcomm is expected to use Certicom technology to secure a
new line of mobile phones and devices that can connect with the
Internet.
A licensing deal was also announced with Emeryville,
California-based database software firm Sybase Inc. <SYBS.O>
on Monday.
Certicom also supplies its technology to such firms as
Santa Clara, California-based computer networking firm 3Com
Corp. <COMS.O>, known for its Palm computing line, Schaumburg,
Illinois-based telecommunications and technology firm Motorola
Inc. <MOT.N> and BellSouth Corp.'s <BLS.N> wireless data
division.
"Are they talking to other companies? Are they talking to
other major players? Yes," Lechem said. "It's really a play on
the security in the wireless sector, the Internet sector, the
e-commerce sector."
Certicom reported on Wednesday second-quarter revenue of
$2.6 million, a 196 percent gain over revenue of $0.9 million
the same period last year.
The firm also reported a second-quarter operating loss of
$1.6 million, or 14 cents a share, compared to a $1.7 million
loss, or 15 cents a share, in the first quarter.
($1=$1.48 Canadian)
REUTERS
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