Feeds

Rambus profit leaps, but misses targets

Rakes in $27 million in royalties

  • alert
  • submit to reddit

Rambus saw profit rise 191 per cent to $13 million for the first quarter, but slightly missed Wall Street expectations.

The chip designer recorded sales of $34.7 million for the period ended December 31, compared to $11.9 million for the same period in 1999. Earnings were 12 cents a share, a penny less than forecast - the California company said it would have hit expectations if it wasn't for a higher tax rate (40 per cent, up from 35 per cent).

Contract revenue grew to $7.9 million, compared to $7 million in the previous quarter.

Included in the sales were $26.8 million in royalties for its technology from chipmakers - this revenue grew tenfold from the previous year, and 35 per cent from the previous quarter.

"We are pleased with the market reception for both the Sony PlayStation 2 and the Intel Pentium 4, and we are confident that these products will drive the demand for RDRAM-compatible ICs to higher levels in fiscal 2001," said Rambus CEO Geoff Tate.

He went on to warn that, due to falling SDRAM prices in December, royalties were not expected to rise in the current quarter from Q1 - unless Rambus managed to recruit fresh blood for its customer base.

The company also said costs would increase in the short term due to its various legal spats with the industry over patents, as well as a move to bigger facilities. ®

Related Stories

Xbox future may depend on Rambus lawyers
Intel denies Rambus legal action - at last
Intel to push Rambus hard in 2001
Rambus-Infineon legal spat delayed
Chip sales hit $18.66 billion in October
We are Borg, er, Rambus

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.