Feeds

Rambus sales, earnings rise on royalties

Licences signed in 2003 start to pay off

  • alert
  • submit to reddit

Combat fraud and increase customer satisfaction

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

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.