Rambus lowered its Q4 revenue guidance of $45 million to $50 million to $40 million, citing open contract negotiations.

“This revised guidance is due to extended contract negotiations for new license agreements originally forecast to complete in the current quarter,” said Harold Hughes, Rambus president and CEO, in a statement. “We are committed to taking the time necessary in negotiations to ensure the value of our IP is fully realized.”

The Los Altos, Calif.-based company has faced some obstacles from both the European Commission (EC) and the Federal Trade Commission (FTC) this year when it comes to its licensing and royalties. On its part, the EC has asserted that Rambus engaged in "intentional deceptive conduct" in the context of the standard-setting process by not disclosing the existence of certain patents, which Rambus later claimed were relevant to adopted standards.

According to the EC, such action is “patent ambush,” and without its patent ambush, Rambus would not have been able to charge the royalty rates it currently does. Meanwhile the FTC has issued an order that required Rambus to license its SDRAM and DDR SDRAM technology and sets maximum allowable royolty rates the company can collect for the licensing.

By: DocMemory
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