Rambus Swings To Q1 Profit, Shares Down On Weak Outlook

(RTTNews) - Rambus Inc. (RMBS) on Monday reported a swing to profit for the first quarter, driven largely by revenue growth and lower operating costs. Nevertheless, the technology solutions company's shares tanked 6 percent in extended trade on the Nasdaq, after detailing a weak revenue outlook for the second quarter.

For the second quarter, Rambus expect revenues in the range of $69 million to $74 million. Analysts polled by Thomson Reuters currently estimate second-quarter revenues of $74.48 million.

Sunnyvale, California-based Rambus reported a first-quarter profit of $7.8 million or $0.07 per share, compared to a loss of $10.4 million or $0.09 per share last year. On an adjusted basis, earnings were $0.17 per share for the quarter. On average, four analysts expected earnings of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.

First-quarter revenues grew 17 percent to $78.3 million from $66.9 million last year. Analysts expected revenue of $72.45 million for the quarter.

The double-digit revenue growth was helped by license agreements signed with SK hynix, Micron Technology and Nanya Technology.

Total operating costs and expenses dropped 16 percent to $55.1 million from last year.

The lower total operating costs and expenses in the first quarter were due mainly to lower litigation expenses, restructuring charges, retention bonuses from acquisitions, consulting expenses and stock-based compensation expenses, offset by higher cost of sales due to the sale of lighting products.

RMBS closed Monday's trading at $12.30, down $0.01 or 0.08%, on the Nasdaq. The stock further dropped $0.88 or 7.15% in after-hours trade.