Technology Sector Review: RealNetworks Ties with Intel, GameStop’s Microsoft Hit

RealNetworks Inc (NASDAQ:RNWK) announced that it has signed an agreement to sell a significant number of its patents and its next generation video codec software to Intel (NASDAQ:INTC) for a purchase price of $120M. Under terms of the sale, RealNetworks retains certain rights to continue to use the patents in current and future products. In addition to the sale of the patents and next-generation video codec software, RealNetworks and Intel signed a memorandum of understanding to collaborate on future support and development of the next-generation video codec software and related products.

The shares closed at $9.89, up $2.54, or 34.56%, on the day. Its market capitalization is $339.55 million.

Canadian Solar Inc. (NASDAQ:CSIQ) announced an agreement with the Al Fahad Group, a diversified conglomerate with expertise in Defense & Intelligence, Homeland Security, Networking & Communications and Power. Under the agreement, Canadian Solar will supply more than 1.5 MW of its solar modules to the Al Fahad Group, which is spearheading one of the largest solar PV projects in Abu Dhabi, considered one of the pioneers for renewable energies in the Middle East. This will be a governmental venture, which was agreed upon during the recent World Future Energy Summit, or WFES, held in Abu Dhabi.

The shares closed at $3.59, up $0.41, or 12.89%, on the day. Its market capitalization is $156.28 million.

Logitech Intl. SA (NASDAQ:LOGI) cut FY12 revenue view to $2.3B vs. prior view of ‘about’ $2.4B. The gross margin for the full year continues to be estimated to reach approximately 33%. Lowers FY12 outlook on a weaker Euro and market weakness. Note that FY12 guidance was cut back on Sept. 22, 2011 as well.

The shares closed at $7.20, down $0.98, or 11.98%, on the day. Its market capitalization is $1.24 billion.

Apple Inc. (NASDAQ:AAPL): U.S. companies with under 500 employees spent about $23.5B on IT services in 2011, and are expected to spend $27.2B on IT services by 2015, according to estimates by research firm IDC, reports the Wall Street Journal. As a result, companies like Apple (NASDAQ:AAPL) are bringing new competition to independent consultants who typically handle the IT needs of U.S. start-ups and small companies.

The shares closed at $444.47, down $2.19, or 0.49%, on the day. Its market capitalization is $414.41 billion.

Microsoft Corporation (NASDAQ:MSFT): Video game retailer GameStop (NYSE:GME) is retreating, after Kotaku reported yesterday afternoon that consumers may not be able to play previously owned games using the next generation of Microsoft’s (NASDAQ:MSFT) Xbox. The new Xbox will incorporate “some sort of anti used game system,” although it’s not clear if Xbox users won’t be able to play used games at all, reported the publication, which said that an unnamed “reliable industry source” provided the information. In mid-morning trading, GameStop retreated $1.08, or 4.32%, to $23.92.

The shares closed at $29.50, down $0.06, or 0.2%, on the day. Its market capitalization is $247.53 billion.

QUALCOMM, Inc. (NASDAQ:QCOM): Company executive says “not be brave enough” to call bottom in March or June, but some indicators do suggest a general bottoming trend. The company noted that suppliers have “very divergent views” on their March quarter projections. Comments taken from Q2 earnings conference call.

The shares closed at $57.81, down $1.18, or 2%, on the day. Its market capitalization is $97.56 billion.

Want news like this in real-time so you can get an edge? Click here for Wall St. Cheat Sheet Pro.

To contact the reporter on this story: Stella Mariz at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com