Semiconductors licensing company Rambus
Looking beyond the jump
Rambus saw its revenues skyrocket by a staggering 216% to $100.3 million from the year-ago period. Don't read too much into that, though, as the company recognized revenues from new licensing agreements in previous quarters.
Among its recent deals, Rambus signed a licensing agreement with an established smartphone company (whose name the company won't reveal) for providing cryptography research and other services. Rambus' latest high-profile client could be anyone from Apple to HTC, Motorola Mobility
The pipeline, meanwhile, has some more fuel in it to provide fatter revenues in the future, and Rambus' acquisition of Cryptography Research earlier this year plays an important role in that regard as well.
Rambus has another potential ace up its sleeve: It's currently entangled in a legal tussle with Micron Technology
The Foolish takeaway
With its ballooning revenues and the potential for a big court settlement, Rambus looks poised to perform well for the remaining year. But it's hard to say what the long-term prospects are. Had Rambus thrown a little more light on the licensing deals, it would have given me some more fodder to be bullish about the company. For now, I suggest adding it to your Watchlist so that you don't miss out on its next big deal.
Fool contributor Harsh Chauhan owns none of the stocks mentioned in the article. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Apple. Motley Fool newsletter services have recommended creating a bull call spread position in 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.