) signed a patent licensing agreement with chip-making company
) for an undisclosed sum. Per the terms of the agreement, LSI
Corp. can use Rambus' patented technology for its integrated
circuit products for five years.
Calif.-based LSI Corp. specializes in providing high-performance
semiconductors. LSI's semiconductors are widely used in hard disk
drives, solid state drives, servers, storage systems, networking
and personal computers. LSI produces the chips with the help of
technologies provided by Rambus.
Rambus will receive royalty payments based on the shipment of
these devices during the contract period. Apart from this deal,
Rambus and LSI have settled all earlier claims regarding its
patented innovations. Rambus and LSI have been involved in
several patent infringement lawsuits since 2010
Rambus' innovative patented technologies are of great importance
to chipmakers for making advanced chips to be used in computer or
electronic goods. Hence, the company has been signing a number of
multi-year licensing deals each year, primarily with
semiconductor companies. Over the past few months, Rambus has
licensed its technology to Fujitsu Semiconductor Ltd.,
) and MediaTek Inc. for their respective integrated circuit
Though Rambus' technologies are getting popular, they often
attract infringement lawsuits. The company had its share of
success defeating tech big shot NVIDIA, but lost lawsuits against
Micron Technology Inc. (MU), and STMicroelectronics (STM).
We believe that Rambus' growth story would remain intact, given
its ability to settle legal claims, growing exposure in the LED
arena and continuous deal wins.
We are also positive as Rambus raised its first quarter 2013
revenue guidance to reflect a one-time licensing payment. The
company's fourth quarter results were also encouraging.
Currently, Rambus has a Zacks Rank #1 (Strong Buy).
BROADCOM CORP-A (BRCM): Free Stock Analysis
LSI CORP (LSI): Free Stock Analysis Report
NVIDIA CORP (NVDA): Free Stock Analysis
RAMBUS INC (RMBS): Free Stock Analysis Report
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