Rambus Inc., a designer of high-speed memory chips used by such giants as Samsung Electronics Co. and Sony Corp., said Tuesday that its fourth-quarter profit fell 24% as legal costs more than tripled.
Net income was $6.54 million, or 6 cents a share, compared with $8.62 million, or 8 cents, a year earlier, the Los Altos, Calif.-based company said. Sales rose 19% to $38.6 million.
Legal expenses rose to $7.5 million as the company prepared for trials in patent infringement lawsuits against Infineon Technologies and Hynix Semiconductor Inc. Rambus holds about 300 patents for semiconductors used in video game consoles such as Sony's PlayStation and in computers. The company claims that it is owed as much as $3 billion in royalties.
Rambus shares fell $1.21 to $20.20 in extended trading. They had risen 17 cents to $21.31 in Nasdaq trading.
The company was expected to earn 8 cents a share and have sales of $38.6 million, according to the average of three analysts surveyed by Thomson First Call.