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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (58683)	1/11/2002 12:39:54 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

01/10 18:13 Rambus 1st-Qtr Profit Falls 53% on Smaller Royalties (Update3) By John Stebbins quote.bloomberg.com Los Altos, California, Jan. 10 (Bloomberg) -- Rambus Inc., a computer memory-chip designer, said fiscal first-quarter profit fell 53 percent as declining chip prices reduced royalties from semiconductor companies that use its designs. Net income in the period ended Dec. 31 fell to $6.17 million, or 6 cents a share, from $13 million, or 12 cents, a year earlier. Sales fell 28 percent to $24.9 million. The per-share profit was 1 cent more than Rambus's own target, Chief Financial Officer Bob Eulau said. The shares rose as much as 8.7 percent. Rambus creates chip systems that speed programs such as databases, digital photography and games. Customers, including No. 1 chipmaker Intel Corp., Sony Corp. and Samsung Electronics Co., pay Rambus royalties and other fees to use its more than 100 patents. As memory prices fell last year, Rambus's royalties dropped. Earnings also were eroded by the cost of a legal fight to get more chipmakers to pay license fees. ``With litigation still pending and Intel supporting other types of memory, it could be downhill from here,'' Greg McClendon, director of research at Hotovec, Pomeranz & Co., said before the release of earnings. McClendon's last rating on the shares, which he doesn't own, was ``sell.'' He had that rating from January to June of last year. The shares of the Los Altos, California-based company rose 4 cents to $8.59 in regular trading today before the earnings report. They rose as much as 75 cents to $9.34 after the release. The stock dropped 78 percent in 2001.