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Integrated Device soars on Intel pact, upgrade

Integrated Device Technology Inc. (Nasdaq:IDTI) jumped 9 percent Wednesday after it inked a cross-licensing agreement with Intel Corp (Nasdaq: INTC). Lehman Brothers also announced it has raised its rating on the company from "neutral" to "buy."

Shares rose 1 3/8 to 17 5/16 Wednesday morning on high volume, making IDT the fifth most active stock on the Nasdaq. It was behind Intel, whose shares rose 2 3/4 to 74 1/2 on slightly higher volumes.

PC processor maker Intel announced Tuesday it would pay IDT $20.5 million as part of the agreement and both companies would license most of each other's patented technologies. No further terms were disclosed.

"This new agreement provides the design engineers of both Intel and Integrated Device Technology (IDT) with greater flexibility as they design new products, enabling both companies to better serve customers' requirements,'' said Pat Gelsinger, general manager of Intel's Desktop Products Group.

IDT provides semiconductor software to system designers in communications and computing. The company bought Quality Semiconductor last November.

Out of five analysts covering IDT, two had considered it "hold," and one "strong buy" according to Zacks Investment Research.

Reuters contributed to this report.