Parthus onstream at 3Com Weekly -BUY_
Killik Viewpoint (KilliK Strockbrokers London)
In its biggest deal to date, Parthus Technologies (PRH, 212p) is licensing almost all its intellectual property (IP) to 3Com, the world leading networking company. Kevin Fielding, Parthus' chief operating officer (COO), said the contract is one of only two 'portfolio deals'. Clients pay dearly for such extensive access, and Fielding anticipates that these portfolio deals will become big revenue and profit generators. They complement Parthus' lucrative business model of upfront licences followed by ongoing royalties that operate close to 100% margins. The news accompanied Parthus' full-year results and an extremely upbeat outlook for 2001. Parthus, listed on both London and Nasdaq, announced record revenues for the full year to December 31, up 68% to $31.92m. Its pretax loss of $14.84m, up from $2.56m, was less than the $16.65m anticipated by analysts, and licences rocketed by 208% to $16.1m. Any concerns that Parthus will be affected by a slowdown in the shipment of mobile phones and internet devices are misplaced. It does not manufacture products and its tier one customers are best cushioned from any delays in the shipment of mobile devices. Capitalised at 1.22bn, Parthus order backlog is already larger than last year's total revenues. Its high margin royalties and portfolio deals are set to rocket as Bluetooth wireless products and Internet devices reach the mass markets throughout 2001 and beyond. BUY."" |
