Sequentially, fourth quarter net income of $9.4 million was down 35 percent from net income of $14.5 million for the third quarter of 2005. Year-to-year, net income was up 45 percent from $6.5 million in the fourth quarter of 2004.

Fourth quarter 2005 revenue was up 16 percent from $36 million in the third quarter of 2005 and up 8 percent from $38.6 million in the fourth quarter of 2004.

For 2005, net income of $33.7 million was up nominally from net income of $33.6 million in 2004, while revenue of $157 million was up 8 percent from 2004.

Rambus (Los Altos, Calif.) said fourth quarter results reflect $6.9 million in contract revenues, up 14.3 percent from the fourth quarter of 2004 and down 13.5 percent from the prior quarter. The sequential decrease, the company said, reflects timing of deliverables under certain memory and serial link technology development contracts.

Fourth quarter results include $34.7 million in royalties, up 6.5 percent from the fourth quarter of 2004 and up 23.7 percent from the prior quarter, the company said, adding that the sequential increase in royalties is primarily due to the first quarterly royalty payment of $5.9 million from Infineon Technologies under the license agreement the two companies announced in March 2005.

"We achieved record revenue and finished the year by signing an important patent licensing agreement with AMD for which payments will begin in 2006," said Harold Hughes, Rambus president and CEO, in a statement. "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."

By: DocMemory
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