Rambus shares jump after settlement with Samsung carried the memory chip maker to a 1Q profit

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Rambus shares jump after settlement boosts results

LOS ALTOS, Calif. — Shares of Rambus Inc. surged Friday, a day after the memory chip maker said it returned to a profit in its latest quarter, helped by a legal settlement.

Investors sent Rambus shares up $1.44, or 6.1 percent, to $24.97 in afternoon trading.

For the first quarter, Rambus said it earned $150.9 million, or $1.28 per share, in contrast to a loss of $17.4 million, or 17 cents per share, a year earlier.

Revenue soared to $161.9 million from $27.3 million last year.

Results included $137.1 million in revenue and a settlement gain of $95.9 million from South Korea’s Samsung Electronics Co. The two companies agreed on a patent licensing deal in January.