Revenue up but profits down for Rambus in quarter
04/14/2003 4:30 PM EST
URL: ebnews.com
Rambus Inc., Los Altos, Calif., said earnings per share for its second fiscal quarter were 5 cents, compared to 7 cents in the same period last year and 6 cents in the previous quarter.
Net income for the March quarter was $5.1 million (18% of revenues), compared to $6.7 million in the same period last year and $5.5 million in the previous quarter. Revenue for the quarter was $28.1 million, up 19% over the same period last year and up 9% from the previous quarter.
"This quarter reflects the progress that we are making with our new Yellowstone and Redwood interface solutions. The increase in both revenue and engineering spending is primarily driven by new contracts with Sony and Toshiba," said Geoff Tate, CEO of Rambus, in a released statement.
March quarter results reflect $3.3 million in contract revenue, up 90% over the same period last year and up 137% from the previous quarter. This increase in contract revenue primarily reflects the contracts signed recently for Yellowstone and Redwood technology.
March quarter results include $24.8 million in royalties, up 14% over the same period last year and up 2% from the previous quarter. Royalties were up primarily due to DDR memories and SDRAM memory controllers.
Total costs and expenses in the March quarter increased $4.7 million from last quarter primarily as a result of an increase in litigation costs, an increase in investment in research and development and an increase in the cost of contract revenue.
The increase in litigation costs was driven primarily by costs associated with preparing for the upcoming trial with the Federal Trade Commission. The increases in research and development and the cost of contract revenue are driven by the investment required to meet the milestones on the contracts signed for Yellowstone and Redwood, it said.
Total costs and expenses were $23.6 million versus $18.9 million last quarter and $14.8 million in the comparable period last year.
The March quarter results include a pre-tax gain of $1.2 million, comprised of Other Income of $1.7 million less research and development expense of $.5 million, resulting from the divestiture of Rambus's investment in NurLogic Design, Inc. which was acquired by Artisan Components during the quarter. The divestiture resulted in the receipt of cash, stock and an intellectual property license. |
