Feeds

Rambus sales, earnings rise on royalties

Licences signed in 2003 start to pay off

  • alert
  • submit to reddit

Intelligent flash storage arrays

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

Secure remote control for conventional and virtual desktops

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
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?
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
Protecting against web application threats using SSL
SSL encryption can protect server‐to‐server communications, client devices, cloud resources, and other endpoints in order to help prevent the risk of data loss and losing customer trust.