Sasken Communication Technologies rose 1.63% to Rs 334.10 at 11:56 IST on BSE on getting royalty payment from Spreadtrum Communications Inc in connection with arbitration award received in July 2014.
Meanwhile, the BSE Sensex was down 137.76 points, or 0.51%, to 27,127.56.
On BSE, so far 1.18 lakh shares were traded in the counter, compared with an average volume of 75,737 shares in the past one quarter.
The stock hit a high of Rs 353 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 333 so far during the day. The stock hit a 52-week low of Rs 112 on 10 September 2013.
The small-cap company has an equity capital of Rs 21.31 crore. Face value per share is Rs 10.
Sasken Communication Technologies (Sasken) announced that Spreadtrum Communications Inc. remitted an amount of $21.49 million in terms of royalty and interest on unpaid royalties. It was an addition to the receipt of first tranche of $7 million from Spreadtrum on 13 August 2014.
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On 1 July 2014, Sasken received arbitration award in its favour in the matter of Spreadtrum Communications Inc. Spreadtrum was directed to pay $31.70 million within 30 days, towards royalties and interest on unpaid royalties. Further the arbitrator had directed Spreadtrum to continue to provide royalty reports and pay the contracted royalties on an ongoing basis.
In December 2012, Sasken approached American Arbitration Association's International Centre for Dispute Resolution ('AAA') over non-payment of royalties, which was contractually agreed by Spreadtrum for the software/IP licensed by Sasken as part of the joint development project undertaken by both the parties. Spreadtrum failed to meet the above, and other obligations to Sasken, a decision that resulted in arbitration filed by Sasken before the American Arbitration Association's International Centre for Dispute Resolution.
Sasken Communication Technologies' consolidated net profit fell 52.3% to Rs 8.36 crore on 6.3% decline in revenue to Rs 108.19 crore in Q1 June 2014 over Q1 June 2013. Consolidated EBITDA declined 36% to Rs 11.81 crore in Q1 June 2014 over Q1 June 2013. EBITDA margin stood at 10.9% during the quarter.
Sasken is a leader in providing engineering R&D and productized IT services to global tier 1 customers in the communications & devices, retail, insurance and independent software space.
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