Dec. 8, 2006

NeoMedia jettisoned its Mobot subsidiary, selling the Lexington, MA.-based mobile marketing company back to its original founders.

Overall, NeoMedia will retain an 18 percent share in Mobot, which it acquired earlier in 2006 for $10 million.

The announcement follows last month’s disclosure that NeoMedia will sell U.K.-based mobile software developer Sponge Ltd. back to its founders. Sponge also was acquired earlier this year, for a hefty $17.4 million.

NeoMedia, which recorded a $29 million 3rd quarter loss, also plans to liquidate its micro paint repair company and focus on its core product line.

Like other barcode programs, NeoMedia's Qode system allows camera phone users to take a picture of an image and transmit the photo to receive mobile content or access a wireless Internet site.

“As promised to our shareholders, we have continued to focus on Qode while cutting back our burn rate and reversing substantial dilution,” NeoMedia head Charles Jensen said.

Jensen added “NeoMedia will continue to concentrate on developing and marketing its expertise on next-generation mobile phone applications and opportunities, especially for our Qode direct-to-mobile-Web cell phone technology.”

NeoMedia's stock, which have fallen steadily since July, climbed 25 percent on the news, gaining 1.5 cents to 7.5 cents each.

Source: RCR News