The action camera making is making great efforts to bring the glory back to its business – it has signed a patent deal with Microsoft Corporation.
GoPro, Inc.’s stock has gone up by as much as 6.73% during after-hours trading to $10.63 after the company announced its collaboration with Microsoft Corporation. Both the technology corporations signed a patent licensing agreement however the terms of the deal have not yet been disclosed.
According to the announcement, with the help of this partnership the action camera maker will be able to gain access to certain storage files as well as other technologies patents via Microsoft Technology Licensing.
The President of Microsoft Technology Licensing, Nick Psyhogeos stated that this collaboration with the action camera manufacturer has given two companies a chance to share technologies through patent transactions. Mr. Psyhogeos further added that the company has seen a strong demand for wearable technology in the market amongst people as the organization partners with companies in the industry.
Presently, no knowledge of which patents have been a part of this deal as both the companies have kept the details of the deal confidential. But since the technology giant has made exFAT file system available for licensing; it could be the patent that might be involved in this agreement. This file system allows users to store all amount of data and files which could be as big as 32GB up to 256TB
Furthermore, after the news came out the stock of GoPro, Inc. saw an increase in its share price while since the beginning of the year the stock price had plunged by as much as 44.73% mainly because the American camera maker reported disappointing financial results for the recent quarter.
Additionally, for the first quarter of the new fiscal year, GoPro is likely to report revenue earnings of $160 million to $180 million which will indicate a significant decline in the revenue from what the company reported during the first quarter of the previous fiscal year. A rating of “sell” has been given to the organization by The Street mainly because the stock performance has been very poor since the start of 2016.
The highest share price at which the stock of the action camera maker has been seen at is $93.70 which was during the fall of 2014 – on the other hand it has also been seen at a share price as low as $9.60. It is yet to see whether this patent licensing agreement will help company regain the position that it once had or not.
The market capitalization of the business right now is $1.34 billion with earnings per share of $1.20. The price to earnings ratio of GoPro is at $8.28.