Superconductor Technologies rises, joins hands with Chinese firm
Superconductor Technologies, Inc. (Nasdaq: SCON) is partnering with a Chinese telecommunications firm to gain a stronger foothold in the Chinese market, the maker of infrastructure products for wireless voice and data applications reported after the close on Monday.
The Santa Barbara, Calif.-based company has signed a term sheet to form a joint venture with Hunchun BaoLi Communication Co. Ltd. by the end of 2007. Together, the two firms will manufacture and market Superconductor Technologies’ interference elimination solution, SuperLink. The proposed joint venture will conduct evaluations of the technology for future use by Chinese telecom operators.
“The telecom market in China has a complicated spectrum plan, with no guard band between some of the neighboring channels,” said QiangHua Shao, the general manager for Baoli, in a statement. “By reducing interference and increasing base station sensitivity, the sharp filtering of STI's SuperLink solution can offer significant advantages.”
Baoli Communication Co. is a wholly owned subsidiary of holding comoany Baoli Group.
According to the terms of the agreement, STI will hold 45% of the joint venture and receive royalty on sales, while Baoli will control the remaining 55%. The two companies are looking to sign a definitive agreement by the end of 2007.
“With the deployment of its 3G wireless network China, China will require solutions to optimize overall network performance,” said STI’s president and CEO Jeff Quiram. “With a strategic relationship with BAOLI, we believe we can significantly improve China's 3G network with products that provide unparalleled interference protection.”
At 2:24 p.m. ET, shares of Superconductor Technologies (SCON) had gained $1.89, or 32%, to $7.78.
