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Rambus Inc. (RMBS - Snapshot Report) added a new feature to its recently invented light emitting diode (LED) bulbs. Its latest LED 65-watt PAR30 bulbs and the 75-watt BR30 bulbs will now have a regulator to adjust in-bulb color temperature. Rambus introduced the LED bulbs in May.

With this feature, end users can adjust the color temperature in LED bulbs and modulate it from 5000K (i.e. cool colors) to 3000K (i.e. warm colors). Color temperature is a standard method of describing colors for use in a range of situations (day to night) and with different equipments. Color temperatures are normally expressed in units called kelvins (K).

Rambus’ innovative technology requires no additional equipments (LEDs or multi-channel drivers) to operate the color temperature. Instead a simple dialer fastened onto the bulbs will maintain the desired level of color temperature, cost efficiently.

Earlier this year, Rambus, better known for its technological inventions, introduced a technology-turned product, its first ever LED bulbs (60-watt A19 bulbs). The bulbs, which leverage its MicroLens optical technology, 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.

The bulbs have improved features such as micro-electronics, dimmer capability, better lumen output (a measure of the total amount of visible light emitted by a source) and advanced thermal management capability.

Rambus’ LED portfolio is ready to hit the market shortly, with the first shipment expected during the third quarter of fiscal 2013.

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.

With the rising popularity of energy-efficient lighting, the in-vogue LED products are finding a place in the latest architectural, retail, commercial and residential lighting fixtures. We find Rambus in a favorable position to capitalize on this opportunity.

However, back-to-back blows from its legal battles with customers such as Micron Technology Inc. (MU - Analyst Report), LSI Corp. and STMicroelectronics (STM - Snapshot Report) and oversupply in the semiconductor market are concerns.

Currently, Rambus has a Zacks Rank #3 (Hold).

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