Wellington Drive signs US licensing agreement
BUSINESSDESK: Wellington Drive Technologies, which makes energy-efficient motors, has signed a licensing agreement with a US company worth $US100,000 to $US400,000 a year.
The Auckland-based company declined to identify the US firm, saying it was confidential, though in a media release it is 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 says. The deal allows for renewal rights after 10 years.
First fees are expected in 2013 and the value will be tied to sales volume.
Wellington Drive says 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.