Rambus, Inc. Beats Q2 Estimates, but Shares Fall on Soft Guidance

Technology licensing expert Rambus crushed analyst targets in the second quarter, but shares fall after hours as revenue guidance disappointed.

Jul 21, 2014 at 5:14PM
Rmbs Logo

Source: Rambus.

Technology licensing specialist Rambus (NASDAQ:RMBS) just reported results for the second quarter of 2014. In after-hours trading, Rambus shares fell as much as 4% on the news.

In the second quarter, Rambus saw revenue jump 32% year over year but fall 2% from first-quarter levels, landing at $76.5 million. On the bottom line, adjusted earnings nearly quadrupled over the year-ago period and fell 4% compared with the first quarter, stopping at $0.16 per diluted share.

Rambus signed several large licensing agreements in 2013, throwing year-over-year comparisons off kilter and making sequential contrasts more useful.

Wall Street analysts were expecting earnings of $0.05 per share on sales around $76 million. Rambus crushed the earnings consensus and edged past the Street's revenue projections.

Looking ahead, management set up a guidance range for third-quarter revenue between $68 million and $73 million. Current analyst views point to the very top of that range, while the new guidance midpoint fell 3% below the prevailing Street view.

During this quarter, Rambus paid $172.5 million to close a tranche of 5% convertible debt notes, as these notes reached maturation. The company is left managing $112.3 million in long-term debt instruments. As a result of the debt payment, the balance of cash equivalents and marketable securities dropped 36% year over year and now stands at $247 million.

Leaked: Apple's next smart device (warning -- it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee that its newest smart device was kept hidden from the public for as long as possible. There's one small company making Apple's gadget possible, and its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Anders Bylund has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days.

We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information