Chipmaker Rambus (RMBS) late Monday reported declining sales but improved profits in the second quarter. RMBS stock fell hard in extended trading.
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The San Jose, Calif.-based company earned $1.51 a share on sales of $119.8 million. In the year-earlier period, Rambus earned 31 cents a share on sales of $121.1 million. Rambus said its second-quarter revenue was in line, while earnings were at the high end of its outlook.
Complicating matters for investors, Rambus reports results using Generally Accepted Accounting Principles, or GAAP, while most analysts use non-GAAP figures for sales and earnings.
Rambus makes memory interface chips. Its high-performance memory subsystems alleviate the bottleneck between memory and processing for data-intensive systems, including artificial intelligence applications.
RMBS Stock Falls On Earnings News
In after-hours trading on the stock market today, RMBS stock dropped 8.2% to 57.49. During the regular session Monday, RMBS stock advanced a fraction to close at 62.61.
RMBS stock is in a nine-week consolidation pattern with a buy point at 68.54, according to IBD MarketSmith charts.
“Rambus delivered a strong second quarter with solid results and execution from the team as we continue to successfully navigate through challenging market conditions,” Chief Executive Luc Seraphin said in a news release.
He added, “By delivering the critical chips and IP (intellectual property) that address the growing demand in data center fueled by AI, we are well positioned to drive the company’s long-term profitable growth.”
Rambus Is On 2 IBD Lists
Rambus is tied for first place among 36 stocks in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. RMBS stock has a best-possible IBD Composite Rating of 99.
Further, RMBS stock is on IBD’s Leaderboard and Tech Leaders lists.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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