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To: Johnny Canuck who wrote (42728)	10/18/2005 4:11:46 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69263

Gain Swells Rambus Quarter By TSC Staff 10/17/2005 5:19 PM EDT Updated from 4:25 p.m. EDT Third-quarter earnings rose 40% from a year ago at Rambus (RMBS:Nasdaq - commentary - research - Cramer's Take) thanks to a gain related to a debt buyback. The semiconductor company's top line slipped as both contract and royalty revenue showed year-over-year declines. Rambus earned $14.5 million, or 14 cents a share, in the quarter, compared with $10.4 million, or 10 cents a share, a year ago. The latest quarter had a pretax gain of $18.6 million from a note repurchase. The Most Read Stories From TheStreet.com 1. Just Ahead: Dow 40,000? 2. Apple's Next Big Thing 3. Buy the Dip, Get Clipped 4. Nokia Slams Motorola on Euro 3G 5. Bottom Drops Out of Nasdaq Sign Up Free Overall revenue fell 7% from a year earlier to $36.0 million, reflecting a 4% dip in contract revenue to $8 million and an 8% decline in royalty revenue to $28 million. Sequentially, contract revenue rose 48% from the second quarter while royalty revenue fell 19%. Rambus blamed the decrease in royalties primarily on fewer SDRAM and DDR-compatible royalty agreements outstanding during the third quarter of 2005. Higher sequential contract revenue reflected new contracts for its XDR and FlexIO interfaces and a contract for high speed serial link interfaces. The single analyst estimate compiled by Thomson First Call called for earnings of 2 cents a share on sales of $33.1 million in the quarter. The stock closed at $11.60 Monday, about $1.40 above its 52-week low. In after hours trading, it rose 55 cents, or 4.7%, to $12.15. [Harry: I would expect up to a 19 percent decline in RMBS tomorrow based on the decline in royalty revenues unless they said something in the call that suggest they have new royalty streams coming on stream soon. The psychological $10 level might hold on the first gap down though. No comment on litigation in the commentary, either in the form of a comment on reserves set aside to pay for legal fees or impending court dates.]