Smith Micro Software Signs Agreement With U.S. Robotics

Smith Micro Software Inc. said it has signed an exclusive agreement to provide communication software to U.S. Robotics Inc., one of the nation’s largest manufacturers of computer modems.

U.S. Robotics, based in Skokie, Ill., was Smith’s Micro’s largest customer last year, and has agreed to sever its relationships with Smith Micro competitors, said Bruce Quigley, a spokesman for the Aliso Viejo-based company. Smith Micro had sales of $18 million last year.

Following the announcement, the price of Smith Micro stock jumped 15% on the Nasdaq market to close at $9.75 per share, up $1.25 per share from the previous day. As part of the deal, the Smith Micro software will be packaged with U.S. Robotics’ modems, and sold under the latter company’s name, Quigley said.

The one-year contract provides for automatic extensions at the end of each year, although both companies can terminate the agreement by giving 90 days notice.