Mon, Oct. 20, 4:21 PM
- Rambus (NASDAQ:RMBS) expects Q4 revenue of $70M-$75M; the midpoint is below a $74.4M consensus.
- Q3 revenue fell 9% Q/Q and 5% Y/Y due to lower Nvidia royalty revenue, and "a one-time catch-up payment from the new license agreement signed with Qualcomm" during Q2.
- Royalty revenue -8% Q/Q and -10% Y/Y to $64M. Contract/other revenue was $5.7M, down from $6.8M in Q2 but up from $2.3M a year ago.
- Cost controls helped EPS beat estimates in spite of a revenue miss: GAAP R&D spend -2% Y/Y to $27M. and MG&A spend -3% to $18.2M. The cash balance rose by $24.7M Q/Q to $271.1M.
- Shares are nearly unchanged AH for now.
- Q3 results, PR
Mon, Oct. 20, 4:07 PM
Sun, Oct. 19, 5:35 PM
Fri, Oct. 10, 1:42 PM
- Following Microchip's warning and related prediction of a chip industry correction, Goldman's James Covello thinks there's 15%-20% downside in industry names.
- Covello, who lowered his industry view to Cautious in August: "The last time Microchip negatively preannounced was October 15, 2012 (3% sales miss). Between October 1 and December 31, Street 2013 sales estimates for the Semi group were revised down 6% on average."
- He adds several datapoints suggest the industry has been overheating. Among them: Semi revenue growth has outpaced end-market growth, and supply chain inventory dollars rose 3% more than their 3-year average in Q2.
- "Nobody will be spared," predicts Hedgeye's Craig Berger. Benchmark's Gary Mobley observes 5 of the 6 chip stocks to have made Q3 pre-announcements have thus done so to the downside.
- Worth noting: Mobile chipmaker Silicon Motion (SIMO -8.9%) is the one chipmaker to have positively pre-announced. It might not be a coincidence that Microchip has relatively low mobile exposure.
- Observing U.S. macro data remains positive even as China and Europe soften, Longbow's JoAnne Feeney remains bullish long-term on select names. However, she has cut her short-term rating on Linear (LLTC -3.8%) to Sell, and removed IDT (IDTI -7.1%) from her trading long list.
- In addition to the names previously mentioned, the following chip stocks are seeing steep losses: AMD -5.1%. FCS -13.6%. NXPI -11.2%. CODE -11%. LSCC -9.6%. SIMG -8.1%. IPHI -7.7%. ISIL -9.5%. CY -6.9%. RMBS -7.1%. QUIK -5.7%. SQNS -5.1%. IMOS -6.5%.
- Foundries and contract manufacturers are also selling off: TSM -3.9%. UMC -2%. SMI -2.4%. SANM -11.7%. FLEX -6.8%. JBL -4%.
- Chip ETFs: SOXX, SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Mon, Jul. 21, 5:38 PM
Mon, Jul. 21, 4:44 PM
- Rambus (NASDAQ:RMBS) expects Q3 revenue of $68M-$73M vs. a $72.5M consensus.
- Revenue rose 32% Y/Y thanks to Rambus' licensing deals with Micron, Nanya, and Qualcomm, partly offset by lower Samsung royalty payments. It fell 2% Q/Q due to a one-time payment related to the Nanya deal in Q1.
- Royalty revenue totaled $69.7M (up from $57M a year ago), and contract/other revenue $6.8M (up from just $910K a year ago).
- Opex +2% Q/Q and +8% Y/Y to $56.4M. Cash/investments fell by $157M Q/Q to $246.4M, thanks to the maturing of $172.5M in convertible debt.
- Q2 results, PR
Mon, Jul. 21, 4:11 PM
Sun, Jul. 20, 5:35 PM
Wed, Jun. 11, 10:34 AM
- Rambus (RMBS) has struck a licensing deal with mobile chip giant Qualcomm (QCOM) that covers its memory, interface, and security IP. Terms are undisclosed.
- As part of the deal, Qualcomm is licensing Rambus' new CryptoManager chip security platform, which (through a core integrated within an SoC) provides "a hardware root-of-trust for the secure provisioning, configuration, keying, and authentication of SoCs during chip and device manufacturing."
- Qualcomm's chip division had FY13 (ended Sep. '13) revenue of $16.7M, and claims over 60% of the baseband processor market. Thus, even a small per-chip royalty could add up.
- With the Qualcomm deal on the books, Rambus now expects Q2 revenue of $75M-$77M, up from a prior $69M-$74M and above a $71.4M consensus. Full-year guidance of $295M-$305M is reiterated.
Wed, Jun. 11, 9:13 AM
Wed, Jun. 4, 12:29 PM
- A federal appeals court has overturned a USPTO ruling invalidating claims in a Rambus (RMBS +1.2%) DRAM patent (USPTO filing). Micron, which had requested the USPTO review, has moved to withdraw from the case. (court ruling - .pdf)
- Markman Advisors declares the ruling a "great result for Rambus." Rambus reached a $280M, 7-year settlement with Micron last December, ending a 13-year patent battle.
Tue, May. 20, 5:38 PM
Mon, Apr. 21, 5:45 PM
Mon, Apr. 21, 5:21 PM
- Though Rambus (RMBS) beat Q1 estimates, it's guiding for Q2 revenue of $69M-$74M, below a $74.5M consensus.
- Recent licensing deals with Micron and Nanya helped Q1 revenue beat estimates. While revenue rose 17% Y/Y, opex fell 16% to $55.1M, in part due to lower legal expenses.
- Rambus ended Q1 with $403.4M in cash/investments, up $15.7M Q/Q. The company has $280M worth of convertible notes on its balance sheet.
- Q1 results, PR
Mon, Apr. 21, 4:07 PM
Mon, Apr. 21, 12:10 AM
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