Rambus Inc, a computer memory-chip designer, said fiscal fourth-quarter profit fell 35 percent as legal and other costs ate into royalties from semiconductor companies that license its designs.
Profit for the quarter ended Sept. 30 fell to US$6.63 million, or US$0.06 a share, from profit of US$10.22 million, or US$0.09, a year earlier, said chief financial officer Bob Eulau of Rambus.
Sales rose 4 percent to US$27.9 million from US$26.9 million. The company also said it will buy back 5 million of its shares.
Rambus' chip designs are used by companies such as No. 1 computer-chip maker Intel Corp to speed software programs. While Intel has said it will support competing memory-chip designs, last month both companies reached an expanded patent-licensing agreement that would pay Rambus US$200 million over five years.
"The key issues have to do with Intel's strategy, legal expenses and sales of the PlayStation going into Christmas," said Charles Krause, managing director at Fairfield Research Corp.
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