Feeds

Rambus sales, earnings rise on royalties

Licences signed in 2003 start to pay off

  • alert
  • submit to reddit

The essential guide to IT transformation

Memory technology developer Rambus saw last year's XDR licences start to pay off during the third quarter of its 2004 fiscal year, the company reported last night.

Q3 yielded revenues of $38.8m, generating income of $10.4m. Both figures mark sequential and year-on-year gains. Revenues were up 10.0 per cent on Q2 and 35.7 per cent on Q3 2003, from $35m and $28.6m, respectively. Earnings rose 25.3 per cent and 108 per cent over the same periods, from $8.3m and $5m, respectively.

Cash and equivalents fell $13m to $219m, much of the drop going into a $11.1m cash payment for the purchase of "certain serial link patents and cells" from Cadence. The company also bought back $7.6m worth of its own stock. The $5.7m discrepancy between the loss to the cash reserve and the total spent was covered by operating cash flow, Rambus said.

Q3's revenues were driven by ongoing royalties: $30.5m, up 24 per cent on Q3 2003 and three per cent on Q2 2004. Those royalties came primarily from the XDR memory technology - aka 'Yellowstone' - licences Rambus signed with the likes of Samsung, Toshiba and Elpida during 2003, it said.

Another defining factor in Rambus' Q3 numbers was the cost of litigation. The company's cost of operations rose 15 per cent sequentially, from $22.2m to $28.1m. Some $1.9m of the extra expenditure was due to an "increase in litigation expense", Rambus admitted.

Rambus is currently fighting memory maker Infineon, with both companies sueing each other. Rambus also has lawsuits in action against Hynix, Micron and Siemens, Infineon's former owner. It alleges they conspired to prevent Rambus' RDRAM competing fairly in the market. It wants a total of $1bn in damages from them all.

Meanwhile, the Federal Trade Commission is appealing against its own administrative judge's ruling that the organisation has no case to back its claim that Rambus acted fraudulently in its dealings with JEDEC, the memory standards organisation, during the development of the SDRAM specification. ®

Related stories

Rambus stock falls 13 per cent on appeal failure
Rambus sues for $1bn
FTC outlines appeal against Rambus ruling
FTC appeals against Rambus ruling
Judge throws out FTC case against Rambus
Rambus offers DDR controller cores
Rambus renames Yellowstone as XDR DRAM

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?