Profit Slips at Rambus
Second-quarter profit fell atRambus (RMBS) - Get Rambus Inc. Report as higher litigation costs offset a 14% rise in revenue.
In after-hours trading, the company's shares recently fell 2.4% to $14.29.
The company said after the bell Thursday that it earned $5.4 million, or 5 cents a share, compared with $8.3 million, or 8 cents a share a year earlier.
Revenue grew to $40 million from $35 million a year earlier. Much of this amount is due to royalty revenue, which rose 17% to $34.6 million. The increase primarily reflects an increase in royalties of SDRAM and DDR, two types of electronic memory.
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However, costs and expenses rose to $34.4 million from $24.4 million a year earlier. About half the increase was due to litigation expense.
Shares of Rambus have been affected for months by a
slew of patent disputes and subsequent litigation.
"The second half of the year is a challenge to forecast, given the number of patent license agreements and renewals we are currently negotiating. We remain committed to signing agreements that generate long-term value," said CEO Harold Hughes. "We have taken important and necessary actions to protect our intellectual property while we work on patent license renewals."
