The increase in components segment revenues resulted from higher semiconductor revenues. Digital products revenues were up primarily due to increased shipments of mobile computers. The agreement recognizes the patents of both parties and is consistent with TI's objective of receiving fair value for its technology. Under the agreement, OKI will pay ongoing royalties to TI based on OKI's worldwide sales of integrated circuit products. The royalty rates under the new agreement are slightly lower than the rate under the prior agreement in recognition of the longer license term.
Negotiations continue with other companies for renewal of expired licenses.
However, these negotiations by their nature are not predictable as to outcome or timing. Components segment profit was down considerably over the first quarter of 1995, primarily due to abrupt price declines in DRAMs and lower royalty revenues. The digital segment operated at a loss during the quarter, somewhat larger than a year ago, primarily due to continued high marketing investments and new product development in mobile computing, and communications and electronic systems. However, the loss narrowed from the fourth quarter of 1995. The income tax rate for the first quarter of 1996 was 32 percent, which is the current estimate of the rate for the full year.