2/4/2008 6:19:34 PM Rambus Inc. (RMBS), a developer of chip interface technologies, on Monday reported a net loss for the fourth quarter, compared to profit in the year-ago period, hurt by higher expenses, while revenues declined 22.9%.
The Los Altos, California-based company reported a fourth quarter net loss of $14.6 million or $0.14 per share, compared to net income of $2.1 million or $0.02 per share for the fourth quarter of 2006.
The latest results included $16.4 million of stock-based compensation expenses, $0.8 million of restatement and related legal expenses and $3.0 million of severance expenses, as well as General litigation expenses of $16.1 million. The previous year's results included $9.7 million of stock-based compensation and $5.7 million of restatement and related legal expenses, in addition to general litigation expenses of $5.2 million.
Rambus has been involved in several litigations. In August 2007, the European Commission issued a Statement of Objections against the company, alleging violations of European Union competition law. Several DRAM manufacturers have complained about Rambus' 1992-1995 participation in an industry standard-setting organization called the Joint Electron Device Engineering Council. Earlier in 2007, Federal Trade Commission ordered the company about restrictions with respect to patent royalties on some widely used memory-chip technology.
Revenues declined to $40.5 million from $52.59 million in the prior year period. Contract revenue plunged to $4.49 million from $8.58 million, while Royalty revenue dipped to $36.04 million from $44.01 million.
In December 2007, Rambus lowered its fourth quarter revenue outlook due to extended contract negotiations for new license agreements. The company said the negotiations were originally expected to complete in that quarter itself.
Total costs and expenses for the fourth quarter increased to $72.6 million from $53.2 million in the previous year.
Cash and cash equivalents at the end of December 31, 2007 was $119.39 million, while they were $73.30 million as of December 31, 2006. Accounts receivable for the two periods were $442 thousand and $846 thousand, respectively.
For the third quarter, the company reported a narrower net loss on reduced legal costs and expenses despite a 9.2% fall in total revenues. The company reported a net loss of $6.5 million or $0.06 loss per share, narrower than $22.6 million or $0.22 loss per share in the same quarter last year but wider than $2.7 million or $0.03 loss per share in the second quarter of 2007. Total revenues slipped to $41.72 million from $45.95 million in the previous year quarter.
Net loss for fiscal year 2007 widened to $27.7 million or $0.27 per share from $13.82 million or $0.13 per share in the year before. Full year revenues dipped to $179.94 million from $195.32 million.
Commenting on the results, Harold Hughes, president and chief executive officer of Rambus, said: “We faced a number of extraordinary challenges in 2007, many of which had an impact on our revenue results. Nevertheless, we enter the new year with some good momentum as illustrated by our first HDTV win for the XDR memory architecture at Toshiba, as well as Qimonda's news that it is now shipping samples of XDR DRAM, expanding the supply base for the world's fastest memory.”
Among others in the industry, Micron Technology Inc. (MU) in December 2007 reported a first quarter net loss, compared to profit in the year-ago period, as selling prices fell below the cost of production. Net sales for the quarter edged up to $1.535 billion from $1.530 billion. http://www.rttnews.com/sp/todaystop.asp?date=02/04/2008&item=20&vid=0
SOHU.com (SOHU) Reports Strong Q4 Earnings; Guides Q1 Above the Street SOHU.com (Nasdaq: SOHU) reports Q4 EPS of $0.43, 12 cents better than the analyst estimate of $0.31. Revenues for the quarter were $65.3 million, versus the consensus of $55.42 million.
Boosts its previously issued guidance. The Company now expects Q1 revenues of $66.5 to $68.5 million, versus the consensus of $59 million. Sees Q1 EPS of $0.43 to $0.45, versus the consensus of $0.32.
Wendy's 4Q earnings more than quadruple Wendy's International says its fourth-quarter earnings more than quadrupled from a year ago, when it took major charges for discontinued operations.
The burger chain based in the Columbus suburbs also says its restaurants reported better margins for the quarter despite high commodity prices.
The fast-food company says it made $14.1 million, or 16 cents per share, for the quarter ended December 30th.
Yum profit beats street, shares fall on outlook Yum Brands Inc, operator of the KFC, Taco Bell and Pizza Hut chains beat Wall Street's profit target on Monday, but its shares fell 2.3 percent after its boosted 2008 earnings per share forecast just missed analysts' target.
An economic downturn in the United States has prompted people to spend less at restaurants and investors are jittery about the growth potential of budget-oriented, fast-food purveyors, who are seeing food and labor costs rise. http://www.reuters.com/article/hotStocksNews/idUSWNAS925120080205
Computer Sciences Profit Rises 58% on New Contracts (Update3)
By Matthew R. Miller
Feb. 4 (Bloomberg) -- Computer Sciences Corp., the manager of networks for NASA and the U.S. Navy, posted a 58 percent rise in third-quarter profit after winning more contracts to manage software and data for businesses.
Net income increased to $179 million, or $1.05 a share, from $113.5 million, or 65 cents, a year earlier, the El Segundo, California-based company said today in a statement. Excluding some costs, profit was $1.11, beating the average estimate of 99 cents in a Bloomberg survey of analysts.
Chief Executive Officer Michael Laphen boosted government and commercial sales by acquiring companies such as Covansys Corp. He also has cut jobs and shifted more work overseas. In January, Computer Sciences announced it would move its headquarters to Falls Church, Virginia, to be closer to Washington.
``They had some pretty good results across the board,'' said Joseph Vafi, an analyst with Jefferies & Co. in San Francisco. He has a hold rating on the stock, which he doesn't own. ``The acquisition of Covansys has helped.''
Sales increased 14 percent to $4.16 billion in the period ended Dec. 28, beating the $4.05 billion estimate of analysts in the Bloomberg survey.
Computer Sciences rose $1.46, or 3.5 percent, to $43.55 in extended trading after the report. The shares, which dropped 7.3 percent last year, had fallen 5 cents to $42.09 in regular New York Stock Exchange composite trading.
Profit Forecast
The company projected fourth-quarter earnings of $1.33 to $1.43 a share, excluding some costs. That compared with an average analyst estimate of $1.48. Sales will be $4.2 billion to $4.5 billion, in line with the average estimate of $4.4 billion.
Computer Sciences said annual profit would be $3.75 to $3.85 a share, excluding some costs. That compared with a December forecast of $3.70 to $3.90. It had predicted as much as $4.20 in June. The company cited higher tax rates and other expenses when it lowered the forecast in December.
Last month, Computer Sciences completed its buyout of First Consulting Group Inc. for $365 million to expand into health- care markets. In April, the company paid $1.14 billion for Covansys to add 7,000 workers in India.
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