Rambus sees Q3 profit on rising revenue

LONDON – Patent licensing company Rambus Inc. made a net loss of $10.6 million on sales revenue of $66.2 million in the second quarter of 2011. However, Rambus (Sunnyvale, Calif.) guided that it would be profitable in Q3 on rising revenue.

The revenue, slightly ahead of guidance, was up 6 percent sequentially from the first quarter and up 70 percent. The revenue lift was primarily due to the recognition of a $25.0 million quarterly licensing payment by Samsung as well as revenue from agreements signed with Elpida and Nvidia in the second half of 2010.

However total operating costs and expenses were also up in 2H11 at $68.7 million, which included general litigation expenses of $11.5 million and costs associated with the acquisition of Cryptography Research Inc.

The net loss for 2Q11 of $10.6 million compares with a net loss of $4.2 million in the first quarter of 2011 and a net loss of $12.5 million in the second quarter of 2010.

Rambus gave guidance that revenue in the third quarter of between $91 million and $96 million and a net income of between $11 million and $16 million.


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