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Rambus and STMicroelectronics announce settlement

NEW YORK (AP) -- Memory chip designer Rambus Inc. and STMicroelectronics, one of Europe's largest chipmakers, announced a licensing agreement Monday and said they have resolved all litigation between them.

The companies said their agreement will allow STMicroelectronics to use more security measures in multimedia chip sets. STMicroelectronics will be able to use Rambus' memory and interface technologies in its products and Rambus will be able to use STMicroelectronics' low-power consumption technology in future products. The companies did not disclose financial terms.

Rambus also said Monday that it now expects $56 million to $58 million in revenue in the second quarter, narrowing a previous estimate of $53 million to $58 million.

The Sunnyvale, Calif., company has announced the settlement of two legal disputes in the last week. On Tuesday Rambus said it resolved a decade-old patent dispute with South Korean chipmaker Hynix. It said Hynix will pay it $240 million over the next five years to license memory-related patents and the right to certain dynamic random access memory products.

Rambus said Monday it will reverse an accrual of $8 million in litigation costs related to the Hynix dispute. It said those costs had been included in its operating expenses.

Shares of Rambus fell 8 cents to close at $8.58 Monday. The stock rose 25 cents, or 2.9 percent, to $8.83 in after-hours trading.