) recently signed a 5-year patent licensing agreement with Nanya
Technology Corporation for an undisclosed sum. Per the agreement,
Nanya can use Rambus' patented technology for its DRAM products
through the second quarter of fiscal 2018. The deal also settles
earlier claims regarding its patented innovations.
Taiwanese DRAM maker, Nanya is one of the leading providers of
memory solutions. It is now one of the top four DRAM companies in
the world, the other vendors being Samsung, SK Hynix and
Micron Technology Inc.
). Leveraging Rambus' patent portfolio, Nanya will bring in
more innovative technological solutions for end users.
Licensing agreements are a recurring revenue source for Rambus,
the result of successful monetizing of its patents. In the fourth
quarter of fiscal 2013, the company reported customer licensing
income (including patent royalties received and gain from
settlements) of $73.8 million compared with $61.6 million in the
year-ago quarter. The year-over-year growth was mainly due to the
new license agreements signed with SK Hynix, Micron Technology,
ST Microelectronics and LSI Corporation.
Rambus' patented technologies are of great importance to
chipmakers for manufacturing advanced chips used in computers and
electronic goods. Rambus has already licensed its technology to
Fujitsu Semiconductor Ltd.,
), Micron Technology and MediaTek Inc. for their respective
integrated circuit products.
Most recently, Rambus signed a 10-year licensing agreement with
Samsung Electronics. Per the agreement, Samsung will use Rambus'
integrated chip technologies and security technologies in its
devices such as tablets, smartphones and set-top boxes though
Moreover, the company expects to introduce several innovative
products and services in 2014 that would support its revenue
growth, going forward.
Apart from these, we are encouraged by Rambus' decision to divest
its Display patent assets to Acacia Research Corp. in order to
focus wholly on the fast-growing Lighting space.
At the same time, competition from Semiconductor Manufacturing
International and Advanced Micro Devices, and oversupply in the
semiconductor market remain concerns.
Currently, Rambus has a Zacks Rank #3 (Hold).
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