Revenue Rises at Rambus

The company also posts an increase in earnings.
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Rambus

(RMBS) - Get Report

said its fourth-quarter top line climbed 7.7% from last year as both contract revenue and royalty payments increased.

The company, which makes its money by developing and licensing out computer-memory chip technology, said it earned $9.4 million, or 9 cents a share, in the fourth quarter. Los Altos, Calif.-based Rambus earned $6.5 million and 6 cents a share in the year-ago period.

Revenue for the fourth quarter was $41.6 million compared with $38.6 million in the fourth quarter of 2004. Shares of Rambus were gaining 28 cents to $34.20 in after-hours trading.

"We are pleased with the results for the fourth quarter," the company said in a press release Thursday. "We achieved record revenue and finished the year by signing an important patent licensing agreement with

AMD

for which payments will begin in 2006. We built a strong foundation this past year with achievements that demonstrate the value of our technology and give us a solid start to the new year."

The fourth-quarter included $6.9 million in contract revenue, up 14.3% from last year, and $34.7 million in royalties, a 6.5% year-over-year increase.