Zoom Technologies Inc signed a license agreement with chipmaker Qualcomm Inc, allowing the Chinese mobile phone maker to develop and sell 3G products using Qualcomm's chip patents, sending its shares soaring 61 percent in pre-market trade.
Zoom's Nollec Wireless unit will develop the products for the Chinese market and pay royalties to Qualcomm at standard rates, the companies said in a joint statement.
Qualcomm's chips are used by mobile device makers including Apple and HTC.
Zoom sells phones to major Chinese carriers such as China Mobile, China Unicom and China Telecom.
Zoom will make some types of CDMA smartphones, running on the Android operating system, targeting Asia and Europe.
Code Division Multiple Access, or CDMA, technology allows many signals to occupy a single transmission channel, optimizing the use of available bandwidth.
Shares of Beijing-based Zoom rose to $4.98 in trading before the bell. They closed at $3.10 on Tuesday on Nasdaq.
source: reuters.com
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