Shares in Amphion Innovations (LON:AMP) were given a major boost as the company said it now has enough cash to meet its working capital requirements.
The news sent the stock soaring 50 per cent in a frenetic opening hour of trade. However, Amphion eased back a little to settle at 6.25 pence at 10.50am, up 1.75 pence on the day.
The trigger for today’s movement was an update on litigation. Amphion revealed this morning that its software arm DataTern has settled five patent infringements since September for a total of US$1.125 million.
The medical and technology specialist also reported that DataTern sold 10 licences last year generating US$2.75 million, of which US$2.025 million came in the second half.
Together with proceeds from the licensing programme due this year and the company’s new debt facility Amphion now has sufficient cash to cover its working capital requirements.
Chief executive Richard Morgan said: "We are confident in the quality of the patents owned by DataTern and believe that a very large number of corporations are using this technology and infringing our patents.
“Our primary goal remains to licence this technology on terms that are fair to the users and in the process to obtain an adequate return on the investment made in the technology. We expect to see additional settlements over the next few months, and beyond.
"Following the restructuring of DataTern, Amphion is able to retain a larger share of each settlement and now that the programme is getting back on track we believe that in the year ahead cash flow from licensing agreements should once again cover the direct operating costs of Amphion, including interest on the Convertible Promissory Note.
"Since inception, DataTern has signed 29 licenses with companies from the financial, credit card, retail, leisure, healthcare, airline, e-commerce, and software industries for a total of about $16 million."