Why Rambus Plunged
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Rambus (NAS: RMBS) have plunged today by as much as 18% after the company reported unimpressive earnings last night.
So what: Revenue in the second quarter came in at $56.2 million, with non-GAAP customer licensing income of $57.4 million. The figures resulted in a net loss of $0.29 per share, worse than the $0.20 per share loss that analysts and investors were expecting.
Now what: During the quarter, Rambus also inked a license agreement with Cooper Lighting to use its patented lighting innovations. Sales fell 11% sequentially, and the company attributed this decline to lower royalties reported by other licensees in the industry. The drop was somewhat offset by a royalty payment from Broadcom. Compared to a year ago, revenue was down 15% due to decreases in contract revenue and the expiration of a patent license agreement.
Interested in more info on Rambus? Add it to your watchlist byclicking here.
The article Why Rambus Plunged originally appeared on Fool.com.Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.