Rambus announced lower profit on its second-quarter earnings due to increased costs and expenses. But its revenue climbs 23 percent as royalties and contract sales grew.

Rambus reported net income of $4.5 million, or 4 cents a share, compared with $5.9 million, or 6 cents a share, in its 2002 second quarter.

Revenue for the period ended June 30 was $29.2 million, up from the $23.7 million in the year-ago period.

Rambus said deals involving its XDR chip technology contributed to $3.7 million in contract revenue, up 148 percent from last year. The company also reported $25.5 million in royalty revenue, a 15 percent increase over last year's second quarter.

The rise in sales stemmed from demand for Rambus' XDR and Redwood chip-interface products. As the quarter ended, Rambus made a deal to license its XDR memory chip technology to South Korea's Samsung. Rambus' products are used in personal computers, Sony's PlayStation 2 video-game controllers and other devices.

Rambus also recently licensed its XDR technology to Japan's Toshiba, which, along with Elpida Memory, will use XDR to make what are said to be the world's fastest DRAM chips.

Eulau said Rambus expects third-quarter sales of $28 million to $30 million. Wall Street analysts previously estimated Rambus would report third-quarter revenue of $28 million.

By: DocMemory
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