The multiyear contract to provide its text products to Nokia calls for a 100% increase in first year revenue over the existing contract, the company says.
Fighting a hostile takeover bid, Zi Corp. helped its cause by reporting that it has renewed its contract with Nokia to continue to provide its text products to Nokia. Zi has been resisting a takeover bid by Nuance.
Zi said the multiyear licensing agreement with Nokia covers deployment of its eZiType and eZiText products and that the new contract calls for a 100% increase in first year revenue over Zi's existing contract with Nokia.
"This is a banner day for our entire organization," said Milos Djokovic, Zi's president and CEO, in a statement. "Nokia is the world's No. 1 manufacturer of mobile devices, with an estimated 40% share of global device market."
Nuance launched a surprise bid for Zi earlier this month, hoping that its $40 million offer would be accepted because the offer was more than double the price of Zi's stock before the offer was tendered. Zi, however, rejected the offer.
Responding to the rejection, Nuance said it was "perplexed" that its offer was turned down and then later instituted patent infringement litigation against Zi. Nuance charged that Zi's eZiText and Zi Qix products infringed patents previously held by Tegic Communications, which was acquired by Nuance last year. Zi has denied infringing the patents, which are entited "reduced keyboard disambiguating system."
Zi also recently reported it has secured a contract extension with Lenovo Mobile to 2011 and a contract to use its eZiText application in some Hewlett-Packard LaserJet multifunction printers.
How Enterprises Are Attacking the IT Security EnterpriseTo learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Digital Transformation Myths & TruthsTransformation is on every IT organization's to-do list, but effectively transforming IT means a major shift in technology as well as business models and culture. In this IT Trend Report, we examine some of the misconceptions of digital transformation and look at steps you can take to succeed technically and culturally.