Mosaid Technologies Inc. (TSX:MSD) says its profit and revenue will be higher than expected in fiscal 2010 as a result of a landmark licensing agreement between the Ottawa patent firm and Samsung Electronics Co., Ltd.

Mosaid, which had announced previously that a deal was imminent, disclosed Monday that its revenue will be $3 million higher in the 2010 financial year than previously thought, rising to an estimated range of $68 million to $70 million.

Meanwhile, its pro forma net income will to be $4.4 million higher than in previous guidance, and operating expenses will be lower, as Mosaid reduces the provisions for litigation and patent licensing expenses.

Pro forma net income is now expected to be in the range of $26.8 million to $27.5 million, up by $4.4 million from the previously announced range of $22.4 million to $23.1 million, Mosaid said.

On a per-share basis, fiscal 2010 will have pro forma earnings of between $2.58 to $2.64, up from the previous guidance of $2.16 to $2.22.

"The increase in guidance for annual revenues and pro forma net income reflects the impact of our new semiconductor patent license agreement with Samsung, as well as our confidence in signing additional patent licence agreements that will have a positive impact on our financial results," said Mosaid president and CEO John Lindgren.

Under the terms of the patent portfolio licence agreement, Samsung receives a lives-of-patents licence under certain patents, and a five-year term licence under certain other patents for memory integrated circuit products.

In addition, Mosaid will buy a portfolio of Samsung patents related to semiconductor device, circuit and processing technologies.

Each company will receive a stream of payments from the licence they sold to the other but terms weren't disclosed.

In addition, the two companies will explore the potential joint develop of a new high-performance flash memory device using Mosaid's architecture.

"Taken together, these agreements with Samsung are among the most important the company has signed in its history," Lindgren said.

"The new semiconductor patent license agreement helps stabilize Mosaid's current revenue stream and provides continued financial strength, while our patent portfolio is made even stronger with the acquisition of a significant number of semiconductor patents from Samsung."

Based in South Korea, Samsung is one of the world's biggest producers of semiconductors and electronics products.