Rambus Charged by Earnings

Updated from 8:16 a.m. EDT

Doubled earnings and a 20% year-over-year jump in revenue sent Rambus ( RMBS) skyward Friday.

Rambus shares were recently up $1.93, or 12.6%, to $17.22.

The memory-chip designer earned $8.32 million in the June quarter, or 8 cents a share, compared with $4.53 million, or 4 cents a share, in the same quarter last year, according to generally accepted accounting principles. Revenue was $34.97 million, up from $29.19 million in 2003.

Analysts polled by Thomson First Call had forecast a profit of 6 cents per share on revenue of $33.4 million.

Rambus' projections for the third quarter were also stronger than analysts had expected. The Los Altos, Calif., company said revenue would likely range from $36 million to $39 million; analysts had projected $34.03 million in revenue for the September quarter.

"This was a very successful quarter with record revenue," said Geoff Tate, chief executive officer of Rambus, in a prepared statement.

Separately, Rambus and Cadence Designs Systems ( CDN) disclosed an agreement to share intellectual property. Cadence, which sells software used to design semiconductors, will become the exclusive reseller of Rambus' serial-link cells.

On a call with analysts after the announcement, Tate said Rambus will pay Cadence $11 million this quarter, and $5 million in the future subject to certain metrics, which he did not spell out.

As originally published, this story contained an error. Please see Corrections and Clarifications.

More from Technology

Amazon, Microsoft and Google Face Backlash over ICE, Military Deals

Amazon, Microsoft and Google Face Backlash over ICE, Military Deals

As Intel Loses Its CEO, How Well Can It Compete Against Nvidia?

As Intel Loses Its CEO, How Well Can It Compete Against Nvidia?

3 Great Stock Market Sectors Millennials Should Invest In

3 Great Stock Market Sectors Millennials Should Invest In

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists