Nokia stocks plummeted Monday in the wake of news the Finnish technology company has reached a patent dispute settlement with South Korean tech giant Samsung.
Though Nokia said the settlement will lift its sales for its patent unit, Nokia Technologies, to about $1.1 billion (1.02 billion euros) for the full year 2015, up from $628 million (578 million euros) in 2014, investors expecting a higher figure expressed their disappointment on Wall Street.
As of 11:05 a.m. ET, Nokia shares were down more than 12 percent.
In addition to the back award, Nokia said it expects to receive approximately $1.4 billion (1.3 billion euros) of cash over the next two years thanks to settled and ongoing arbitration related to its patents, including from the Samsung award.
Nokia said it has already received some prepayments related to the settlement.
“The use of independent arbitration to resolve differences in patent cases is a recognized best practice, and we welcome the additional compensation payable to Nokia under the extended agreement,” Nokia Technologies president Ramzi Haidamus said in a statement. “We look forward to further collaboration with Samsung and others in additional licensing opportunities in the mobile communications market and beyond.”
In 2013, Samsung and Nokia signed a five-year extension of their patent license agreement. As part of that deal, Samsung was scheduled to pay additional compensation to Nokia at the start of 2014, with the full amount to be decided through arbitration before the end of 2015.