On the other end of the spectrum in the server market, a relatively low percentage of time is DRAM and the large server actually address written to or read from roughly about 15%, that notwithstanding it is powered in essence the entire time so as to keep latency down. On both ends of that spectrum, Intel has – excuse me, Rambus has created a great deal – a great deal of technology and as the market has segmented, people have a position to protect than they are most interested in working with someone. When the market was standardized, it was very difficult to get revenue.
And lastly, as you know the market has continued to produce fewer and fewer suppliers as a result I think DRAM prices are on their way north. I think it's far easier for Rambus to license someone who is making money and has a market that they want to protect. About five years ago, just to complete the story as we saw how difficult it was to be a relatively small IP licensing company and as we saw the things that we needed to be good at and obviously we set out to do that, we logically assumed that there will be other businesses that had roughly the same profile as Rambus relatively small, had groundbreaking technology, but it was having a great deal of difficulty licensing that technology.
And as a result, we undertook a diversification project or process. Diversification, I don't think is a very good description. Often times, diversification means diversification. It's a completely different business and to the extent that one does well it offsets any difficulty in the latter. Our concept was well we are a licensing company there are relatively limited number of large companies from which we would look for licensing income, what are the attributes of those companies. Samsung, for example, Samsung obviously needs semiconductors, but Samsung makes a great deal of television, cell phones, etc., all of which have backlit screens. So, one of acquisitions, we did we thought would be applicable and relicensing Samsung and that is our lighting business – our lighting business.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts