Rambus Swings To Profit, Revenue Misses; Stock Down - Update

(RTTNews) - Technology solutions provider Rambus Inc (RMBS), Monday reported a swing to profit in the third quarter despite lower revenues, reflecting the absence of one-time expenses recorded a year ago. While the quarterly earnings matched Wall Street estimates, revenues fell short of expectations.

The company provided revenue guidance for the current quarter, the midpoint of which is indicated to miss analysts' estimates. Following the announcement, Rambus shares slid 6 percent in after-hours trade on the Nasdaq.

Rambus provides solutions including memory, chip interfaces and architectures, end-to-end security, and advanced LED lighting.

The company said its results for the quarter were hurt by lower royalty revenue from Samsung and NVIDIA, offset by the license agreements signed with Qualcomm and Micron Technology.

Rambus, based in Sunnyvale, California, posted third-quarter net income of $5.5 million or $0.05 per share. This compares with a loss of $5.7 million or $0.05 per share last year, when it incurred impairment charges of $8 million, among other items.

Excluding items, adjusted earnings for the quarter were $0.13 per share, compared with earnings of $0.15 per share in the prior year.

On average, four analysts polled by Thomson Reuters expected earnings of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the third quarter slid 5 percent to $69.7 million from $73.3 million a year ago. Analysts expected a consensus revenue estimate of $71 million for the quarter.

For the fourth quarter, Rambus projects revenues of $70 million to $75 million, while analysts currently expect $74.4 million.

Rambus stock closed Monday at $10.97, down $0.09 or 0.81%, on a volume of 1.2 million shares. In after hours, the stock slid $0.67 or 6.11% at $10.30.