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Rambus Inc. (RMBS - Snapshot Report) recently came out with a host of light emitting diode (LED) bulbs thereby adding to its recently introduced LED portfolio. Its LED portfolio now includes the 65-watt PAR30 bulbs and the 75-watt BR30 bulbs.

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.

Along with the bulb invention, Rambus also set up a business alliance with the Elite Group for the promotion and sale of its bulbs across North America.

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.

However, the technology continues to evolve, with significant advancements in brightness of the LED devices that would make them all the more suitable for the lighting revolution. Hence, Rambus’ entry into this growing LED lighting market could prove extremely beneficial going forward.

In Mar 2013, Rambus divested its Display patent assets to a subsidiary of Acacia Research Corporation to focus more on the LED space. Display patents were offered under the Lighting and Display Technologies segment. The divestiture was planned during Rambus’ third quarter of 2012.

With the rising popularity of energy-efficient lighting, the in-vogue LED products are finding 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 - Snapshot Report), LSI Corp. (LSI - Analyst Report) 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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