Memory chip maker Rambus (NASDAQ:RMBS) has announced that it signed a patent license agreement with LSI (NYSE:LSI.DL) running through 2018, following a settlement the two reached in the long-running lawsuit against the semiconductor specialist. The agreement allows LSI to include Rambus' patented innovations in all its products.
While Rambus said the terms of the settlement are confidential, it also revised its first-quarter revenue projections to now say it expected between $65 million and $69 million, up from its prior guidance of $58 million to $63 million, suggesting that LSI paid Rambus somewhere between $6 million and $7 million.
Kevin Donnelly, senior VP and general manager at Rambus, said, "Reaching this agreement with LSI is an important step as we look forward to deeper engagement and collaboration with the industry." The memory-chip maker's stock jumped almost 7% in after hours trading.