Infinite bags Motorola order

Infinite Computer Solutions has bagged a contract from mobile handset maker Motorola to further develop and support Motorola’s short messaging service (SMS) and multi-media messaging service (MMS) messaging platform. The contract is expected to fetch the Bangalore-headquartered company revenues of about $20 million in the first year (fiscal 2010-110 which might also go upwards of $40 million from fiscal 2011-12.

An agreement relating to this was recently signed between Infinite’s wholly-owned subsidiary, Infinite Convergence Solutions and Motorola.

As a part of the agreement, Infinite will acquire a non-transferable licence to Motorola’s messaging solutions for a period of 10 years. This would enable the company to reproduce and prepare derivative works out of the base licence product and develop applications and related services. This would be sold as a licensed implementation to Motorola, its clients and even the third parties.

The IP ownership of the licensed messaging product will remain with Motorola, while Infinite will retain all rights, title to and the IP of all add-on software developed by itself. Additionally, Motorola employees and certain assets and equipment lease directly supporting the company’s messaging product solutions business will be transferred to Infinite. The company however wished not to disclose the exact number of Motorola employees who will now move to Infinite.

The company said that since a large part of the revenues would be derived from the sale of capacity licences which is based on growth in the number of customers and their messaging usage in the future, “the deal value might be significantly different from the current forecast range.”

Infinite, which recently had come out with an IPO, has recorded revenues of Rs 160.90 crore in the quarter-ended December 31, 2009, sequentially down by 2.8 per cent. The company has given a revenue guidance of Rs 645 crore to Rs 650 crore for the fiscal 2009-10 with a YoY growth of about 30 per cent.