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Rambus’ License Agreement with Broadcom Will Reduce Its Dependence on a Small Number of Customers

|Includes:AVGO, Rambus, Inc. (RMBS)

On 22-Dec-11, Rambus, Inc. (NASDAQ: RMBS), a provider of patented innovations and technologies through either patent or technology licenses, announced that it signed a 5-year patent license agreement with Broadcom Corporation (NYSE: BRCM). With revenue historically derived from the receipt of royalties from a select number of customers, this agreement with BRCM is a step towards reducing RMBS’ revenue concentration risk through increasing the breadth of its customer base.

During 2010, the company’s two largest customers, Samsung and Elpida, together accounted for 71% of revenue. During the first nine months of 2011, Elpida, Freescale, NVIDIA, and Samsung each accounted for more than 10% of total revenue and together aggregated to approximately 63%.

Here is the press release on the license agreement.

Stocks: RMBS, AVGO