Shares of Wave Systems Corp. jumped Monday after Dell Inc. agreed to distribute Wave Systems' security software on its business computers equipped with trusted computing chips, or TPMs.
Shares of Wave rose 8 cents, or 11 percent, to close at 80 cents on the Nasdaq Stock Market.
As part of the licensing deal, Wave said it will receive a per-unit royalty based on Dell's shipment volumes of products equipped with its Embassy Trust Suite software. The software works with the TPMs to provide additional levels of security, the Lee, Mass.-based company said.
TPMs are essentially hidden from a computer's operating system and therefore safe from software tampering. In combination with security software like Wave's, administrators can use the chip for smart signatures, longer authentication codes and as a vault for passwords and encryption keys, the company said.
Further details of the deal weren't disclosed.
Dell shares edged up 19 cents to close at $30.04, also on the Nasdaq.