Sharechat Logo

Wellington Drive signs US licensing agreement worth up to US$400k/year

Wednesday 26th September 2012

Text too small?

Wellington Drive Technologies, which makes energy-efficient motors, said it has signed a licensing agreement with a US company worth US$100,000 to US$400,000 a year.

The Auckland-based company declined to identify the US firm, saying it was confidential, though in a media release it was described as a Fortune 500 company.

Under the 10-year agreement Wellington Drive will license an application specific motor controller and provide future fee-based support services, it said. The deal allows for renewal rights after 10 years.

First fees are expected in 2013 and the value will be tied to sales volume, it said.

Wellington Drive said its medium-term strategy is to focus on its commercial refrigeration business though the agreement announced today "represents a successful effort to monetise non-refrigeration electronics technology and was a key initiative in our 2012 turnaround plan."

Last month the company narrowed its first-half loss while saying that achieving a profit in 2013, its first since listing in 2001, would be "challenging" given the weak outlook for Europe.

The shares last traded at 14 cents.

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Wellington Drive narrows 1H loss as turnaround plan trims costs by 30 percent
Wellington Drive raises $4M in placement supported by SuperLife
Wellington Drive Technologies on trading halt pending announcement
Wellington Drive narrows FY loss after trimming costs, fattening margin
Wellington Drive shareholders approve $2.1M placement, guidance affirmed
Wellington Drive 3Q sales slide 23 percent, sees tough trading ahead
Wellington Drive adds cool fan technology to its refrigeration line up
Wellington Drive says profit in 2013 'challenging', seeks funding partner
Wellington Drive Technologies embarks on cost-cutting drive
Wellington Drive names Greg Allen as new CEO, based in North America