Technology licensing company
) is defocusing its Display business. Rambus reportedly shifted
all its Display patent assets to a subsidiary of
Acacia Research Corporation
). Display patents were offered under the Lighting and Display
Technologies segment. Financial terms of the deal were not
ACACIA RES-TECH (ACTG): Free Stock Analysis
GENL ELECTRIC (GE): Free Stock Analysis
MICRON TECH (MU): Free Stock Analysis Report
RAMBUS INC (RMBS): Free Stock Analysis Report
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Rambus stepped into the Lighting and Display Technology business
in 2009, which was a vertical shift influenced by its traditional
(semiconductor) licensing business. Notably, Rambus strengthened
its new business area with the acquisition of a portion of
Uni-Pixel's intellectual property portfolio in early 2010. The
portfolio comprised dynamic backlighting based on Time
Multiplexed Optical Shutter ('TMOS') display technology. The TMOS
display technology can be applied to modern LCD display panels to
create more efficient and cost-effective devices.
Over the years, Rambus felt the importance of lighting
technologies in human lives and decided to focus more on
inventing newer lighting technologies.
During the third quarter of 2012, Rambus announced plans to
change its business strategy within this division to focus less
on display technology and more on general lightening to
capitalize on the imminent opportunity in LED (light emitting
LED is a semiconductor light source used as indicator lamps in
many technological devices and are increasingly being used for
general lighting products. LEDs are energy efficient, long
lasting, space saving but relatively more expensive than
incandescent light sources.
Rambus' LED focus gained momentum with a patent licensing deal
General Electric Company
) Lighting unit in Jun 2010. Under the terms of the deal, Rambus
licensed its patented inventions to help GE manufacture a
comprehensive suite of LED solutions.
With the rising popularity of energy-efficient lighting, the
in-vogue LED products are finding place in the latest
architectural, retail, commercial and residential lighting
fixtures. To strengthen its position in the Lighting segment and
ensure patent protection, Rambus went beyond its traditional
licensing model to develop its first ever LED bulbs in Jan 2013.
The bulbs will feature Rambus' latest MicroLens optical
technology, which will help generate consistent lighting and
control spherical distribution of light. The company asserts that
the bulbs are economical (due to lower production cost), energy
efficient and long lasting.
Along with the bulb invention, Rambus set up a business alliance
with the Elite Group for the promotion and sale of its bulbs
across North America.
The decision to shed off the Display technologies segment is
going to prove beneficial for Rambus and we believe that the
company has the potential to capitalize on the budding LED
Though back-to-back blows from its legal battles with customers
Micron Technology Inc.
), LSI Corp. (LSI) and STMicroelectronics (STM) are concerns, we
are positive on the news of an expected growth in the global
semiconductor market in 2013.
Currently, Rambus has a Zacks Rank #1 (Strong Buy).