Irvine-based Microsemi Corp., a maker of chips for use in aerospace, defense and consumer electronics, struck a patent licensing deal with Cisco Systems Inc.
The company said it signed a cross-licensing deal for a technology that’s called power-over-Ethernet, which sends power through computer networking cables, cutting the need for separate power cords for routers, switches and other devices.
The chips are seen as a way to cut the costs of installing and operating networking gear or other devices, such as security cameras.
Financial terms of the deal weren’t disclosed.
“The technology exchange is a validation of our strong technology and intellectual property,” said Rob Adams, Microsemi’s vice president of corporate development. “This was a mutually beneficial agreement.”
The technology has been put into many uses in recent years, including for laptop computers, access control devices, personal digital assistants, fire sensors and alarms, and audio and video remote monitoring, the company said.
Microsemi landed design wins with Cisco back in 2007, after it bought publicly traded Israeli chipmaker PowerDsine Ltd. for $245 million.
Analysts view the Cisco deal as a positive for Microsemi because it could bring in more revenue and pave the way for Cisco to become a bigger customer down the line.
The pact “is a testament to the value of Microsemi’s patent portfolio in this market and bodes well for future product shipments into Cisco,” said Craig Berger, an analyst at FBR Capital Markets Corp. in New York. “We think the Cisco agreement could include royalties, product revenue or some combination thereof.”
Berger has an “outperform” rating on Microsemi’s stock and a $25 price target on its shares. The stock was trading at about $16 per share last week on a market value of $1.3 billion.
Wedbush Securities Inc. analyst Patrick Wang said he sees potential for Cisco to become a “top customer.”
Wang has an “outperform” rating on the stock and a $20 per share price target.
Startup Funding
Irvine-based security software startup MultiFactor Corp. recently raised $3 million in a round of financing.
The latest round brings MultiFactor’s total funding to $11 million. All of the company’s financing is from private and individual investors, who weren’t disclosed.
The company plans to use the money to build up its sales group and continue to grow.
MultiFactor’s software, called SecureAuth, verifies the identities of those people in a company who are allowed to have access to physical and virtual networks.
The company specializes in securing corporate networks that run in the cloud, which lets companies store and run their data and software programs on outsourced servers.
Cloud computing helps companies cut down on the costs of running data centers by allowing files and software programs on their shared networks to be stored elsewhere.
“Everyone is excited about cloud computing and about the money they can save, but people are also concerned about their security,” said Thomas Stewart, MultiFactor’s chief operations officer and chief finance officer. “What is unique is that SecureAuth allows the same simple, secure access to traditional software located on premise as well as to cloud applications such as Google Apps and Salesforce.com.”
MultiFactor’s customers include schools, cities, banks, drug makers, retailers and other large companies.
The company, which has about 20 workers here, was started in 2005 by technology security industry veterans Garret Grajek and Craig Lund.
Both are cofounders of Waltham, Mass.-based Netegrity Inc., a maker of security software that went public in 1999 and was acquired in 2004 by New York’s Computer Associates Inc. in a deal valued at $430 million.
MultiFactor doesn’t disclose financials. The company said it has seen eight consecutive quarters of growth.
It doesn’t plan to raise any additional money, Stewart said.
Local.com Hiring
Irvine-based Local.com Corp., which runs an online search engine for finding local businesses and products, has been hiring.
The company’s most recent hire was Eileen Licitra as vice president of product management.
Licitra joins the company from Michigan’s MediaSpan Group Inc., where she most recently was vice president of product management.
She is set to head up product management initiatives, refining the company’s product strategies, processes and objectives, as well as launching products.
Last month, Local.com hired Rajan Mohan, an AOL Inc. veteran, to help develop all of Local.com’s owned and operated Web properties.
