Zenith Electronics Corp. of Glenview said it selected Microware Systems Corp. to provide software for its digital high-definition television sets expected to roll out late next year.
Terms weren’t disclosed.
The deal extends an existing licensing agreement between the companies to include Microware’s digital audio/video interactive decoder, or DAVID, software package for Zenith’s HDTV sets.
Under the previous contract, Microware supplied software for Zenith’s digital set-top boxes. Those boxes were used in a trial that helped Zenith win a five-year, $1 billion contract to make three million digital TV set-top boxes for Americast, a partnership of phone companies and Walt Disney Co., said Arthur Orduna, Microware’s director of marketing.
Now the software will be built into the HDTV set receiver, the companies said. Based on Microware’s flagship operating system, OS-9, DAVID will provide a platform to support other digital-TV applications–including e-mail, World Wide Web browsing, interactive retailing and movies on demand–that can be added to Zenith’s advanced sets.
For Microware, the deal marks the first time its software will be built directly into TV receivers.
The Des Moines-based software company has concentrated on providing embedded system software technology primarily for digital set-top boxes. Some of its other customers include General Instrument Corp., Sony Corp. and Samsung.
“This is going to open up new markets for us and expand us further in the digital television market as well,” said Sara Payne, a Microware spokeswoman.
For Zenith, it’s another move to secure a leading role in the race to provide the next generation of TV sets. The company’s future has come into question of late as its largest shareholder, Seoul-based LG Electronics Inc., faces the tumult of South Korea’s crumbling financial markets.
Those concerns prompted Standard & Poor’s to lower Zenith’s credit and debt status, sending Zenith stock to a 52-week low of $5.12 last week.
Zenith shares closed Monday down 37 cents, to $5.12, in New York Stock Exchange trading, while Microware shares shot up 94 cents, to $5.56, in Nasdaq trading.
