Rambus stock drops as sales, outlook fall short

Rambus Inc.
RMBS,
-12.36%
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.