Rambus (RMBS) 2020 Q4 Results Below Expectations

Rambus Inc. (NASDAQ:RMBS), founded in 1990, is one of the world’s leading technology licensing companies. It is mainly engaged in the design and development of technologies to enhance the end-user experience. Moreover, the company offers a variety of semiconductor solutions ranging from architecture licenses and digital controller interface IP cores to memory interface chips.

The Sunnyvale, California-based company on Monday announced disappointing financial results for the fourth quarter. Rambus posted a loss of $12.1 million, or 11 cents per share for the three months ended Dec. 31. Contrarily, analysts on average were looking for a profit of 25 cents per share. Revenue for the quarter came in at $61.9 million, slightly up from $59.9 million in the comparable period of 2019, but fell short of $97 million estimated by analysts.

Speaking on the results, CEO Luc Seraphin said in a statement, “Rambus delivered excellent results in 2020, fueled by focused execution, significant product growth, and sustained patent licensing. With our cash generation enabling ongoing investment in our roadmap, we are well positioned to meet the expanding needs of data center and cloud, and are poised for continued profitable growth in the coming years.”

Rambus also issued its revenue outlook for the first quarter. The company expects to generate revenue in the range of $57 million to $75 million for the first quarter, below the consensus forecast of $102.4 million.

The company said that it inked several new patent licenses with major customers during the past year, besides renewing deals with key clients.

Rambus shares traded nearly flat on Tuesday following the quarterly results. The stock has advanced more than 21 percent over the past year, and about 12 percent on a year-to-date basis.