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Non-Tech : EARNINGS REPORTING - surprises, misses & more -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (551)	4/13/2001 5:41:06 AM
From: 2MAR$	Read Replies (1) \| Respond to of 762

RMBS ( $19 down 2) Q2 earnings miss ($3c) analysts' consensus estimate LOS ALTOS, Calif., April 12 (Reuters) - Rambus Inc., a developer of technology to speed the performance of memory chips, on Wednesday reported fiscal second-quarter earnings that fell below expectations amid falling prices and mounting legal expenses arising from litigation. ADVERTISEMENT For the quarter ended March 31, Rambus (NasdaqNM:RMBS - news) said it had a profit before acquisition-related charges of $8.2 million, or 8 cents a share, compared with a loss of $166,841, or 4 cents, a year ago. Revenues rose to $31.2 million from $15.7 million. Analysts, on average, had forecast Los Altos, Calif.-based Rambus to earn 11 cents a share, according to Thomson Financial/First Call. ``Our second fiscal quarter results show the effect of both declining SDRAM prices and costs associated with the continuing vigorous legal defense of our intellectual property,'' said Geoff Tate, chief executive of Rambus, in a statement. Rambus stock rose $1.29, or about 7 percent, to $19.53 on the Nasdaq. The shares are close to a year low of $15.67 and well off a year high of $127. To a large extent, Rambus is looking to Intel Corp.'s (NasdaqNM:INTC - news) Pentium 4 chip to help boost sales. The only type of memory chip that the Pentium 4 can work with now is dynamic random-access memory with Rambus technology, or an RDRAM chip. Higher volumes of the Pentium 4 chip are expected in the fourth quarter of this year, as Intel starts rolling out the Pentium 4 chips made with 0.13 micron process technology. RDRAMs are also used in Sony Corp.'s PlayStation2 and some digital televisions, Tate said. He added that falling prices -- on the order of 50 percent from the previous quarter -- for synchronous DRAM chips, or SDRAMs, hurt sales in the quarter and noted that the trend will likely continue in the current, third quarter. Rambus now expects a decline in total revenue from current SDRAM-compatible integrated circuits of 20 percent, plus or minus several points, from that in the second quarter. Contract revenue in the quarter fell 38 percent to $7.58 million from $12.2 million, while revenue from royalties rose almost seven-fold to $23.7 million from $3.5 million, Rambus said. Currently, Rambus is embroiled in litigation with Hyundai, Micron Technology Inc. and Infineon. Delays in litigation with these companies, Tate said, meant that legal costs exceeded the company's expectations for the quarter. Email this story - Most-emailed