Enea extends royalty agreement worth 1.275 MUSD
STOCKHOLM, Sweden, 29 October, 2012 – Enea (NASDAQ OMX Nordic:ENEA) has signed a royalty agreement with an existing US telecom customer operating in the field of public safety communications. Today’s agreement, worth 1.275 MUSD (9 MSEK) is an extension of a previous royalty agreement for the operating system Enea OSE. In addition, it gives the customer access to Enea’s multicore technology. Royalty is based on the number of sold units, but with some customers Enea signs royalty agreements based on an estimated number of sold units instead of the subsequently reported number of sold units.
“This agreement is beneficial for both parties.”, said Anders Lidbeck, President and CEO of Enea. “The customer will benefit from a more predictable cost and simplified reporting. We will benefit from prepaid and more predictable revenues. At the same time we keep the opportunity for increased revenues going forward as the contract is capped, after which adjusted pricing is implemented.”