Rambus shares drop on larger 4Q loss as revenue falls
By APFriday, January 29, 2010
Rambus shares drop on larger 4Q loss
LOS ALTOS, Calif. — Memory chip company Rambus Inc. reported an 18 percent decline in revenue and bigger losses during the fourth quarter, though business appeared to pick up from earlier in the year.
The company, which receives licensing fees from patents of its memory chip designs, lost $23.3 million, or 22 cents per share, compared with a loss of $15.5 million, or 15 cents, in the same quarter a year earlier.
Revenue fell to $30.8 million from $37.6 million.
Rambus said revenue for the 2008 fourth quarter got a boost from the reinstatement of disputed sales, which previously were withheld by a U.S. Federal Trade Commission order.
Samsung Electronics Co. agreed to pay Rambus $900 million and give it an equity stake to end a patent lawsuit.
“The agreement signed last week with Samsung Electronics is transformational for Rambus and will accelerate the market adoption of our patented innovations,” said President and CEO Harold Hughes.
For the year, Rambus lost $92.2 million, or 88 cents, compared with a loss of $199.1 million, or $1.90. Last year, it recorded a $114 million provision for income taxes.
Revenue fell nearly 21 percent to $113 million.
Shares of Rambus, based in Los Altos, Calif., fell 46 cents, or 2 percent, to $22.92.
