Rambus stock drops as sales, outlook fall short

Rambus Inc. (RMBS) shares dropped in the extended session Monday after the chip and sensor maker's forecast fell short of the Wall Street consensus. Rambus shares fell more than 8% after hours, following a 0.1% uptick in the regular session to close at $62.61. The company reported second-quarter net income of $168.9 million, or $1.51 a share -- largely because of a $155.3 million tax benefit. Before the tax benefit the company reported net income of $13.6 million, or about 12 cents a share, compared with net income of $35 million, or 31 cents a share, in the year-ago period. Revenue declined to $119.8 million from $121.1 million in the year-ago quarter. Analysts surveyed by FactSet had forecast 39 cents a share on revenue of $138 million. Rambus forecast third-quarter licensing billings to be between $59 million and $65 million, while the Street expected $65 million, on average. Rambus also forecast product revenue between $47 million and $53 million, while analysts estimated $61.8 million; and estimated contract and other revenue to be between $17 million and $23 million, while the Street forecast $22.2 million.

-Wallace Witkowski

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07-31-23 1728ET

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