Rambus Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2015. For the quarter, the company reported revenue for the fourth quarter of 2015 was $76.8 million, up 4% on a sequential basis from the third quarter of 2015 primarily due to higher contract and product revenue, offset by lower royalty revenue. As compared to the fourth quarter of 2014, revenue was up 7% primarily due to higher royalty revenue from SK hynix, IBM and the renewal of patent license agreement with Toshiba in the fourth quarter of 2015 as well as higher contract revenue, offset by lower royalty revenue from Renesas and STMicroelectronics. Net income for the fourth quarter of 2015 was $13.0 million as compared to net income of $182.0 million in the third quarter of 2015 and net income of $7.8 million in the fourth quarter of 2014. Diluted net income per share for the fourth quarter of 2015 was $0.11 as compared to diluted net income per share of $1.52 in the third quarter of 2015 and diluted net income per share of $0.07 in the fourth quarter of 2014. Non-GAAP net income in the fourth quarter of 2015 was $20.7 million, 22% higher than the prior quarter and 24% higher than the fourth quarter of 2014. Non-GAAP diluted net income per share was $0.18 in the fourth quarter of 2015 as compared to $0.14 in the prior quarter and $0.14 in the fourth quarter of 2014. Operating income was $20.334 million against $17.585 million a year ago. Income before income taxes was $17.562 million against $14.676 million a year ago. Non-GAAP operating income was $33.417 million against $27.449 million a year ago. Non-GAAP income before income taxes was $32.272 million against $26.076 million a year ago.

For the year, the company reported revenue for the year ended December 31, 2015 was $296.3 million, which was relatively flat as compared to the prior year period, primarily due to lower royalty revenue from ST Microelectronics and NVIDIA Corporation, offset by higher revenue from SK hynix, IBM and higher sales of security and lighting products. Net income for the year ended December 31, 2015 was $211.4 million as compared to a net income of $26.2 million for the same period of 2014. Diluted net income per share for the year ended December 31, 2015 was $1.80 as compared to a diluted net income per share of $0.22 for the same period of 2014. Non-GAAP net income for the year ended December 31, 2015 was $70.6 million as compared to $70.1 million in the same period of 2014. Non-GAAP diluted net income per share was $0.60 for the year ended December 31, 2015 as compared to non-GAAP diluted net income per share of $0.60 for the year ended December 31, 2014. Operating income was $71.420 million against $75.346 million a year ago. Income before income taxes was $60.231 million against $50.250 million a year ago. Non-GAAP operating income was $115.168 million against $119.208 million a year ago. Non-GAAP income before income taxes was $110.351 million against $109.474 million a year ago.

For the first quarter of 2016, the company expects revenue to be between $71 million and $75 million.

For 2016, the company expects revenue to be between $310 million and $325 million. Revenue is not without risk and includes expectations that the company will sign new customers for patent as well as solutions licensing and renew or extend agreements with existing customers.