Updated from 4:25 p.m. EDT
Third-quarter earnings rose 40% from a year ago at Rambus(RMBS) 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. 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.>To order reprints of this article, click here: ReprintsTheStreet Premium Services For Personal Service: 877-471-2967
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn MoreETF Profits:
Get money-making ideas from the hottest investment vehicle on the planet. Our experts show you how to play various ETF sectors to help pump-up your portfolio. Learn MoreOptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn MoreReal Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn MoreStocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn MoreTo begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 12,882.21 | 1,351.46 | 2,931.01 | 19.84 |
Oil *
117.53
|
|
UP
80.98 |
UP
8.82 |
UP
27.13 |
UP
0.15 |
10 Yr
1.98%
SPDR Gold
167.57
|
|
+0.63%
|
+0.66%
|
+0.93%
|
+0.76%
|
Data delayed 20 minutes |

Connect with TheStreet