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Error: FLEXlm error: -1,73. System Error: 24 "Too many open files"

Error Message

Error:   
Error with socket for ethernet hostid: Too many open files 

Checkout of gsrvr nnnnn, user=xxxx, client node=xxxxxxxxxx 
FLEXlm Error: Cannot find license file The license files (or server network addresses) attempted are listed below. Use LM_LICENSE_FILE to use a different license file, or contact your software provider for a license file. 
Feature: SdeClient 
Filename: /path1/sysgen/license.dat 

License path: /path1/sysgen/license.dat 

FLEXlm error: -1,73. System Error: 24 "Too many open files" 

For further information, refer to the FLEXlm End User Manual, available at "www.globetrotter.com"...

Cause

This is a known issue with FlexLM. Each connection consumes a file handle when the LM_LICENSE_FILE value is set to the name of the license keycode file. FlexLM doesn't close license files in a timely manner.

Solution or Workaround

Instead of setting LM_LICENSE_PATH (or ESRI_LICENSE_FILE) to a pathname, use the form <port>@<host>. For example, set it to "27005@myhost" rather than "/licmgr/lickey.txt"

For help with setting a system environment variable, see:  How To: Edit an environment variable.