Rambus 2Q Loss Widens on Lower Royalty, Contract Revenue; Shares off
07/19/2012| 06:36pm US/Eastern
By Kristin Jones
Rambus Inc.'s (>> Rambus Inc.) second-quarter loss widened as the technology licenser saw a decline in its revenue from royalties and contracts.
Shares sank 7% to $4.85 in after-hours trading. Through Thursday's close, the stock was down 31% so far this year.
Rambus Inc. (>> Rambus Inc.) licenses patented technology used to accelerate the performance of memory chips. It recently named Ronald Black, who has held positions at Motorola Inc and International Business Machines Corp. (>> International Business Machines Corp.), as its new chief executive following the retirement of its former chief.
Rambus reported a loss of $32.2 million, or 29 cents a share, compared with $10.6 million, or 10 cents a share, a year earlier.
Revenue fell 15% to $56.2 million.
Revenue from royalties, the company's core top-line contributor, declined 8.6%, as certain licensees reported lower royalties, and a patent license agreement expired. Contract revenue plummeted to $492,000, from $5.24 million.
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