Rambus (Nasdaq: RMBS) reported earnings on Oct. 18. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Rambus beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share.

Margins contracted across the board.

Revenue details
Rambus chalked up revenue of $57.5 million. The two analysts polled by S&P Capital IQ expected a top line of $54.8 million on the same basis. GAAP reported sales were 43% lower than the prior-year quarter's $100.3 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.52. The two earnings estimates compiled by S&P Capital IQ anticipated -$0.23 per share. GAAP EPS were -$0.52 for Q3 compared to $0.00 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 86.9%, 570 basis points worse than the prior-year quarter. Operating margin was -8.6%, 4,360 basis points worse than the prior-year quarter. Net margin was -101.0%, 10,150 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $60.3 million. On the bottom line, the average EPS estimate is -$0.17.

Next year's average estimate for revenue is $239.5 million. The average EPS estimate is -$0.93.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 432 members out of 526 rating the stock outperform, and 94 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Rambus a green thumbs-up, and 24 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rambus is outperform, with an average price target of $7.33.

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