Nokia Corp NOK stock gained Monday after inking a new patent cross-license deal with Apple Inc AAPL Friday. The terms of the agreement remain confidential between the parties.
The new agreement replaced the current license, which will expire at the end of 2023.
Nokia expects to recognize the revenue related to this new patent license agreement starting in January 2024.
Jenni Lukander, President of Nokia Technologies, said: “The agreement reflects the strength of Nokia’s patent portfolio, decades-long investments in R&D, and contributions to cellular standards and other technologies.”
In April, Nokia reported a first-quarter FY23 net sales growth of 10% year-on-year (9% in constant currency) to €5.86 billion.
Network Infrastructure sales grew 13% Y/Y in CC. Cloud and Network Services sales increased by 3% Y/Y in CC, while Nokia Tech declined by 22% Y/Y.
Mobile Networks sales grew by 13% Y/Y in CC as 5G deployments in India ramped up.
Price Action: NOK shares traded higher by 2.16% at $4.25 premarket on the last check Monday.