Rambus enjoys surge in earnings

Chip designer Rambus has announced that its third-quarter earnings rose 59 per cent, as royalty payments from chipmakers increased and legal expenses fell.

Net income in the period ended 30 June climbed to $5.9m - or six cents a share - from $3.7m - or four cents a share - a year earlier, the company said in a statement. Sales rose 1.7 per cent to $23.7m from $23.3m.

Rambus collects revenue from companies that use its designs, and from engineering work. In the recent past it has sued three memorychip makers for alleged patent infringement.

But all is not well with the company. The Federal Trade Commission last month accused the company of deceiving a standards-setting group in order to boost patent royalties. The company has denied the accusation.

Chief financial officer Robert Eulau said that revenue in the fourth quarter would be unchanged from the third quarter.