Research In Motion Limited (RIM) (Nasdaq: RIMM) and Qualcomm (Nasdaq: QCOM) announced a Code Division Multiple Access (CDMA) licensing agreement Wednesday, under which RIM may use Qualcomm's technology and patents to develop, manufacture and sell CDMA products.
Shares of RIM slipped slightly, off 2.91 to 77.84, while Qualcomm lost 1.69 to 81.75, before the bell.
Under the terms of deal, RIM was granted a multi-million dollar, royalty-bearing license, allowing the Canadian handheld device maker to integrate Qualcomm's CDMA and 1xEV wireless technologies.
RIM's popular two-way e-mail devices are based on radio modem technology and do not currently utilize digital cellular networks. RIM reports its fiscal third quarter earnings today after market close.
According to First Call Corp., RIM is expected to lose a penny a share.