Shares of Rambus Inc.(RMBS – Snapshot Report) dropped 2.62% in after-hours trade on tepid revenue outlook for the third quarter despite the significant year-over-year increase in the company’s second-quarter earnings which also beat the Zacks Consensus Estimate.
Revenues came in at $76.5 million which not only increased 32.1% on a year-over-year basis but came marginally ahead of the Zacks Consensus Estimate of $76.0 million. Reported revenues were at the high end of management’s guided range of $75.0 to $77.0 million. Licensing agreements with Micron Technology (MU – Analyst Report), SK Hynix, Nanya Technology and QUALCOMM (QCOM – Analyst Report) positively impacted revenues which more than offset lower royalty payments received from Samsung.
— Zacks Investment Research