(RTTNews) - Thursday, memory chip maker Rambus Inc. (RMBS: News ) reported a third quarter loss that narrowed from the year ago quarter, reflecting the absence of both restructuring costs, as well as impairment charge present for the year earlier period. Revenues, however, were down, impacted by a decline in contract revenue.

The Los Altos, California-based company's net loss narrowed to $27.50 million or $0.26 per share from $30.95 million or $0.29 per share in the prior year quarter. Prior periods have been adjusted to reflect the impact of the adoption on January 1, 2009 of a FASB staff position, the company said.

Quaterly revenue of Rambus declined 5.3% to $27.87 million from $29.43 million in the prior-year quarter. Royalties revenue increased to $26.90 million from $25.79 million for the year-ago period, while contract revenue declined to $976 thousand from $3.63 million a year earlier.

Operating loss narrowed to $20.66 million from $30.56 million in the same period last year.

"The recovery in chip sales following an industry overcorrection, and modest growth in our focus markets, helped deliver revenues at the high end of our guidance," said Harold Hughes, president and chief executive officer at Rambus.

Chips designed by Rambus is being used in some of the play station available in market including Sony. The company, in fact, do not have any chip production facilities, but rather develops technologies, patents them and then licenses those technologies to manufacturers.
In the sequentially preceding second quarter, Rambus had incurred a net loss that narrowed to $24.00 million or $0.23 per share from $138.32 million or $1.32 per share in the same quarter a year ago. Revenues dropped 24.4% to $26.98 million from $35.72 million in the prior-year quarter.

Total costs and expenses decreased to $48.53 million from $59.98 million in the same period last year, absent restructuring costs and impairment charge present in the comparable period last year.

For the nine-month period, net loss narrowed to $68.89 million or $0.66 per share from $183.61 million or $1.75 per share in the prior-year period. Revenue for the period declined 21.6% to $82.19 million from $104.88 million for the year-earlier period.

Amongst others in the industry, Intel Corp. (INTC: News ) had reported third-quarter net income of $1.9 billion or $0.33 per share, compared to net income of $2.0 billion or $0.35 per share in the same quarter last year. Revenue for the quarter was $9.4 billion, down from $10.2 billion in the comparable quarter last year.

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