Rambus Earnings Down, Stock Up

But the results topped analyst expectations, and the stock rose in after-hours trading. The company also forecast that third-quarter revenue would be little changed from second-quarter levels, and that per share earnings will top current analyst forecasts by a penny.

Los Altos, California-based Rambus said net income for the quarter, ended March 31, fell to $6.75 million, or 7 cents a share, from $8.04 million, or 7 cents, a year earlier. Revenue declined to $23.5 million from $31.2 million.

The four analysts surveyed by Thomson/Financial First Call on average expected Rambus to earn 5 cents a share, within a range for earnings of 4 cents to 6 cents. According to three analysts who supplied forecasts, revenue was pegged at $23.4 million.

The quarter's revenue included $21.8 million in royalties from the memory-chip technology it licenses to memory-chip makers.

Shares of Rambus rose as high as $8.09 in after-hours trade, after closing up 37 cents to $7.50 on the Nasdaq before results were released.

Third-quarter revenue will not "differ significantly from the revenue we reported this quarter," said Chief Financial Officer Robert Eulau on a conference call.

Rambus also expects to report per share earnings of "about 6 cents," Eulau said, adding that litigation spending will be less than $2 million in the third quarter.

Analysts expect the company to report earnings of 5 cents a share in the third quarter, according to First Call, on revenue of $23.4 million.

+REUTERS

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