Intrinsyc gets Soleus ODM design win

The efforts of the past several years are starting to pay off at Wellington Financial Fund II portfolio company Intrinsyc Software (ICS:TSX). Just yesterday they announced their 2nd design win for the Soleus software platform. And this time, it was in the sweet spot of the Soelus target market: mobile handsets.

The stock didn’t react much as it appears that someone who bought on the April equity financing hit the bid when the buyers showed up today on the great news. About a year ago, the stock would rally 30-40% in a week on the rumour of someone looking at Soleus. Now, with two design wins, you’d think folks would start to believe. The chat rooms worry about the quantum of revenue that could flow from these two announcements, and those concerns are valid. But no new software product can have $1 million in revenue in the first month following a MOU. The eventual handset sales are where the revenue likely kicks in; but make no mistake, Intrinsyc appears much closer to that opportunity than ever before in light of this press release.

Here is the release, in case you missed it:

“Intrinsyc Software Secures Additional Design Win for the Soleus(TM) Platform

Leading ODM Licenses Intrinsyc’s Solution for its GPS and MDTV Device with Mobile Phone Capabilities

VANCOUVER, BRITISH COLUMBIA–(MARKET WIRE)–Jun 5, 2007 — Intrinsyc Software International, Inc. (Toronto:ICS.TO – News) announced today that it has signed an agreement to license its Soleus(TM) software platform to a leading Taiwanese manufacturer of computer hardware and consumer electronics products. The original device manufacturer (ODM) has licensed Soleus for the development of its first combination GPS and MDTV device with mobile phone capabilities.

“This agreement represents an important next step validating Intrinsyc’s ability to commercialize Soleus with a global ODM. Coupled with the earlier announcement of a design win with a leading handset and personal navigation device original equipment manufacturer (OEM), we are confirming the Soleus value proposition as an adaptable software platform that enables handset manufacturers to more effectively develop an array of wireless consumer devices” said Glenda Dorchak, Intrinsyc’s Chief Executive Officer. “This manufacturer is not only planning to use Soleus software for its first converged GPS and MDTV mobile phone, but it also plans to integrate the Soleus development platform into its larger product roadmap. This is a major step forward for our business and further broadens our penetration into the rapidly growing GPS market, where there is an increasing trend towards converging navigation with traditional mobile functionality in order to drive unit shipments for manufacturers.”

This licensee has an agreement with a customer for deployment of this device that will use the Soleus(TM) development platform to both expedite time to market and deeply define both the application suite and the end user’s phone experience. In addition to the GPS and MDTV capabilities, the device will also support a variety of other applications, such as a camera, media player and more. Specific terms of the agreement were not disclosed.

“The use of Microsoft Platform Builder configuration tools, and the use of Microsoft Visual Studio® in the Soleus software are two more reasons this manufacturer selected our software platform,” said Mark Johnston, Executive Vice President & General Manager, Worldwide Sales and Business Development with Intrinsyc. “Microsoft Platform Builder provides manufacturers with control over software configurations, helping them to create multiple products from a common, shared hardware base by mixing and matching different features.”

Johnston continued to explain, “Visual Studio applications have been expanded through Intrinsyc’s UX Designer plug-in to provide both the UI canvas and handset controls, which allow developers to use a drag-and-drop interface for building the UI of Soleus applications.”

The Soleus platform is a complete mobile handset software solution built on Windows® Embedded CE, with pre-certified telephony and a large application portfolio designed specifically to address the consumer handheld device opportunity. The Soleus platform also delivers the software necessary for manufacturers to provide consumers with Location-based Services, such as a graphical user interface that matches the sport or entertainment event they are attending.

Intrinsyc is actively expanding its Soleus marketing activities globally, and expects to continue licensing the Soleus platform to manufacturers looking to add telephony to their handheld products or more functionality to their consumer handset products. With the Soleus development platform and its engineering service group, Intrinsyc continues its innovation for handset manufacturers around the world.”

Congrats to the team.

MRM
(disclosure – our Fund II owns warrants in ICS)