Feeds

Legal costs cut Rambus earnings

Q1 revenues up, though

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Memory technology developer Rambus said its income and earnings dipped during the first quarter of its fiscal 2005, despite a strong year-on-year gain in revenues.

The three months to 31 March 2005 yielded $39.6m in revenues, up 22 per cent on the year-ago quarter, but made for a more modest increase of three per cent on Q4 FY2004. The bulk of Rambus' revenues - $33m - came from royalties, which were up a single percentage point sequentially but 20 per cent up on the year-ago quarter's total, on the back of an increase in SDRAM and DDR royalties, Rambus said.

The remaining $6.6m came from contracts, which showed a nine per cent sequential and a 30 per cent year-on-year gain, the result of the XDR memory and FlexIO interface technologies licensed in 2003.

Rambus recorded a net income of $4.4m (four cents a share) for the quarter, down from $6.5m (six cents a share) in the previous quarter and $8.3m (seven cents a share) in Q1 FY2004.

Falling income on growing revenues points to rising costs, and sure enough, Rambus said its cost and expenses had risen during the quarter, primarily due to all the litigation it's involved in. For example, costs went up $10.8m year on year, from $23.9m to $34.7m - 65 per cent of the increase, $7m, came in the form of legal costs. The rest, Rambus said, arose from "increased staffing and compensation costs to support current and future business opportunities".

Having chased Infineon for alleged infringement of patents relating to GDDR memory, Rambus settled its outstanding legal battle with the German memory maker.

On the upside, the company ended the quarter with $460m in the bank, up $224m on the previous quarter, thanks to a big sale of convertible notes.

Separately, Rambus said it had reached a five-year agreement with NEC, allowing the Japanese company to maker memory controllers compatible with SDR, DDR and DDR2 SDRAM as well as future memory controller innovations. Rambus said it will receive royalties on sales of licensed products. ®

Related stories

Rambus offers to quadruple DRAM data access speeds
Toshiba, Elpida prep 'industry's fastest' DRAM
Infineon and Rambus kiss and make up
Rambus Infineon claim chucked out of court
Rambus sues four for GDDR 'infringement'
Rambus income slides despite revenue gains
Rambus board plays musical chairs

Beginner's guide to SSL certificates

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.