SiliconBeat

Rambus said it intends to “reduce our current cost structure through actions which may include downsizing our workforce” after reporting a 25 percent drop in sales for its second quarter compared with the year-before quarter, according to its earnings release this afternoon.

The company’s net loss ballooned to $144.7 million in the quarter compared with a $2.7 million loss the year before primarily because of a $130.5 million expense to reverse previously previously recorded tax benefits.

Rambus, which licenses its chip designs, is involved in patent litigation with three of the five biggest makers of computer memory. General litigation expenses totaled $9 million, up more than a third from the year-before quarter.

Legal bills could reach as high as $16 million in the current quarter, Chief Financial Officer Satish Rishi said on a conference call with analysts. Sales could fall as low as $27 million from $41.7 million a year ago.