Rambus Exit Signal

Stockspotter now has listed an exit signal for the Rambus (RMBS) short position.  This trade earned 2.43% after being held for 9 days.  After reading some recent company news I learned that Rambus Inc agreed to license certain patents to Freescale Semiconductor for five years and resolve all claims related to the technology.

This deal is important considering that Rambus has been trying to salvage their name after their shares sank in mid-May after a U.S. appeals court determined that the technology licensor did destroy documents in patent disputes with chip makers Micron Technology Inc. and Hynix Semiconductor Inc. The move potentially threw out a $397 million settlement that Rambus was due to receive from Hynix and kicked both lawsuits back to lower court.

As per the deal, the company said it will license its patent for memory controllers and serial links used in Freescale’s logic integrated circuits.  Possibly in regard to this news, Rambus shares’ rose 3 percent after-markets to $14.11 having closed at $13.68 on Monday on Nasdaq.

Additional Company Info: Rambus Inc. engages in the creation, design, development, and licensing of patented innovations, technologies, and architectures to digital electronics products and systems. Its patented innovations include Dual Edge Clocking, which is designed to allow data to be sent on the clock pulse; Variable Burst Length that improves data transfer efficiency by allowing varying amounts of data to be sent per a memory read or write request in dynamic random access memory (DRAM) and flash memory; and FlexPhase technology, which synchronizes data output and compensates for circuit timing errors.

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