Tallahassee, FL 11/4/11 (StreetBeat) --Shares of Openwave Systems Inc (Nasdaq: OPWV) rose 30% in pre-market trade on Friday, a day after the software maker reported a surprise first-quarter profit and announced that Microsoft Corp agreed to license itss patent portfolio.The Rewood City company, which makes software for telecom operators to give customers wireless access to data and applications, said Microsoft was the first to license its entire portfolio of about 200 patents, including several foundational patents covering smart device and cloud technologies, among others.
Financial terms were not disclosed but the deal is expected to figure in the on-going patent litigation in the smartphone sector in which the major players have been buying up or licensing patents to use in court battles.
The company, which has filed several patent infringement complaints against tech bigwigs Apple and Research In Motion, said it would continue to invest in protecting its intellectual property.
Separately, Openwave also reported a surprise first-quarter profit of 11 cents helped by service and patents revenue growth. Analysts on average expected the company to report a loss of 8 cents per share for the quarter.
Shares of the company which have lost 29 percent since the start of this year, recuperated all their losses to close at $1.57 on Nasdaq on Thursday. They were trading at $2.04 in Friday's pre-market trading.
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