FTC Clarifies Rambus' Royalty Matters, Shares Rise 6% in After-hours

After the market closed yesterday, Rambus reported the FTC "has stayed portions of its remedy order In the Matter of Rambus Inc." The FTC says its remedy is intended to be "forward-looking" and issued guidelines for acceptable collection of royalties related to past use of its technologies including SDRAM and DDR SDRAM. The Senior VP and general counsel for Rambus commented, "The Commission’s opinion confirms our ability to collect payments due for use of our technologies in the past and allows us to retain royalties already paid, removing significant uncertainty for the market." The FTC is also allowing Rambus to collect royalties in excess of its Feb. 2 remedy order. Rambus said it "plans to appeal both the FTC’s liability and remedy orders in their entirety." Rambus' shares traded 5.65% higher to $20.95 in after-hours activity on volume of about 1.1 million, after losing 1.2% to $19.83 in normal trading.

Sources: Press release, Reuters
Commentary: Rambus Surges on FTC Patent-Royalty Ruling • FTC Rules Against Rambus, Shares Plummet 26% [Aug. '06] • WSJ Options Scandal Scorecard
Stocks/ETFs to watch: Rambus (RMBS). Competitors: Micron Tech. (MU), Qimonda AG (QI)

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