Shares of Rambus (NASDAQ: RMBS) are down 19.2% as of two:45 p.m. ET Tuesday after the chip interface applied sciences specialist introduced weaker-than-expected quarterly outcomes.
Rambus was happy with its “robust” quarter
Rambus’ fourth-quarter 2023 income fell barely on a year-over-year foundation to $122.2 million, as a 67% improve in royalties income (to $52.4 million) was greater than offset by declines in product (down 20% to $53.7 million) and contract income (down 32.4% to $16.1 million). On the underside line — excluding non-recurring gadgets akin to stock-based compensation and a one-time acquire on the sale of an fairness funding — that translated to non-GAAP (adjusted) internet earnings of $41 million, or roughly $0.37 per share. Analysts, on common, had been anticipating earnings of $0.45 per share on income nearer to $140 million.
Licensing billings for the quarter had been up round 3% yr over yr to $66.2 million.
Rambus CEO Luc Seraphin famous Rambus’ earnings and income arrived close to the excessive finish of the corporate’s steerage, calling it a “robust fourth quarter … that outpaced the general semiconductor market.”
“With our deal with high-performance options for the info heart and AI, we’re nicely positioned to drive the long-term worthwhile development of the corporate and persistently return worth to our stockholders,” Seraphin added.
What’s subsequent for Rambus shareholders?
Rambus’ present steerage for the primary quarter of 2024 assumes product income $47 million to $53 million, contract and different income of $17 million to $23 million, and licensing billings of $59 million to $65 million.
Ultimately, although, Rambus was happy with its quarter because it outpaced the expansion of the broader semiconductor market, Wall Road was clearly unamused by the miss relative to expectations. Rambus shares are responding in type.
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