Smith Micro’s Motorola Deal Boosts Stock

Smith Micro Software Inc. shares rose 16% after the communications software maker said it signed an agreement to provide Motorola Inc. with software for its modems. Smith Micro said the contract could generate “multimillion-dollar” revenue this year.

Smith Micro shares rose $1.125 to close at $8.125 on the Nasdaq market as 292,800 shares changed hands, more than twice the three-month daily average of 118,000.

The agreement is for one year with automatic extensions at the end of each year. Smith Micro will provide software on diskettes and compact discs. The CDs will include a selection of Smith Micro retail products as well as products provided by other companies under contract to Smith Micro.