(December 30, 2011) Shares of MoSys Inc. (NASDAQ: MOSY), a Sunnyvale, California-based company, saw a huge rally in trading on Friday. The MoSys stock ended the day 41.41% higher at $4.20 on above average volume of 2.06 million.
MoSys shares soared in trading on Friday after the company announced the sale of its patents. MoSys entered into a patent purchase agreement under which Invensas purchased 43 U.S. and 30 foreign memory technology patents from MoSys for $35 million in cash. Invensas is a wholly-owned subsidiary of Tessera Technologies Inc. (NASDAQ: TSRA).
Under the terms of the agreement, MoSys retained a royalty-fee license to the patents to cover its Bandwidth Engine® product line and technology partners, along with related rights to provide sublicenses to current and future partners.
Simon McElrea, President of Invensas Corporation, said that the MoSys patents are very relevant to industry-standard DRAM products that have been shipping from the fabs of Invenasas’ potential licensees. McElrea further said that the MoSys transaction represents a major milestone in the company’s ongoing acquisition program.
Len Perham, President and CEO of MoSys, said that the company is pleased with the transaction as it offers continued access to the patents. Perham also said that the transaction strengthens the company’s balance sheet. He added that the combination of the retained license and the non-dilutive source of funding made the transaction very appealing.
About MoSys Inc.: MoSys Inc. is engaged in designing, development, marketing and licensing of embedded memory intellectual property (IP) utilized by the semiconductor industry and electronic product manufacturers.
- The MoSys stock has a 52-week range of $2.77-$6.64.
- The stock trades on a daily average volume of 165,884.
- The stock is currently trading above its 50-day moving average, which is a bullish signal.
- The stock’s MACD has crossed the signal line on the upside and is also above the zero-line, which are strong bullish signals.
MoSys announced sale of 73 patents to Invensas. The company’s shares soared following the announcement.