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Rambus Inc. Message Board

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  • fastmoney_2011 fastmoney_2011 Nov 16, 2011 4:03 PM Flag

    Got in at $7.05 for a dead cat bounce!!

    You better read the financials again

    before you make foolish statements

    The stock is oversold

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    • I looked at the financials, analysts were projecting a loss of 21 cents next year, and this was before this news.

      They have/had a market cap of 2B on 300M in revenue.... so basically a 7 to 1 sales ratio.

      So.... no profit, high P/S and now adverse court rulings.

      Sounds bad to me.... but tell me the good news, I'm new to this trade.

      • 1 Reply to dsousa
      • Rambus reported total revenue of $100.3 million in the third quarter, up 215.9% from $31.7 million in the year-ago period. The quarter’s result surpassed the company’s guidance range. The improvement was attributable to strength noticed in both segments.

        Royalty revenue increased 208.6% year over year to $96.2 million, mainly due to the recognition of royalties from new licensing agreements signed in the second and third quarters of 2011. Revenue from Contracts saw a whopping 617.6% rise from the comparable quarter last year.

        Operating Results

        Total operating expenses in the third quarter were $82.1 million, up 96.1% from $41.9 million in the year-earlier quarter. The steep rise was due to higher stock-based compensation and acquisition expenses as well as retention bonuses. The year-ago quarter included $10.3 million gain related to the Samsung settlement.

        Reported operating income in the quarter was $10.7 million, compared to a loss of $11.5 million in year-ago quarter. The operating margin was 10.7% compared to negative 36.2% in the year-ago quarter.

        Reported net income was $478,000 or 0 cent per share, compared with a loss of $20.6 million or 18 cents in the comparable quarter last year. Excluding the impact of other patent royalties received, acquisition costs and retention bonus, restatement and related legal charges and amortization expenses, but including stock compensation expenses, the adjusted income per share came in at 6 cents.

        Balance Sheet

        Rambus exited the quarter with cash, cash equivalents and marketable securities of approximately $292.8 million, compared with $359.4 million in the prior quarter. The decrease was the result of the repurchase from Samsung of approximately 4.8 million shares of its stock or an aggregate amount of $100.0 million pursuant to the put option offset in part by cash from operations. The company generated approximately $35 million in cash from operations.


        For the fourth quarter, Rambus expects revenues between $66.0 million and $71.0 million. Pro forma operating expenses are expected in the range of $58.0 million to $62.0 million, accounting for litigation expenses of $12.0 million to $15.0 million. Pro forma net income is projected between $2.0 million and $8.0 million.

13.90+0.19(+1.39%)Aug 25 4:00 PMEDT