Shares of Rambus (NASDAQ: RMBS) closed 9.5% higher on Tuesday after the chip interface technology company announced better-than-expected quarterly results.
Revenue declined 6.1% year over year to $105.3 million, including a 10.9% decrease in product sales to $52.2 million, a 3.3% drop in royalties to $28.9 million, and 2.1% growth in contract and other revenue to $24.2 million. Licensing billings arrived at $57.9 million, down from $62.2 million in last year's third quarter. But each metric arrived well above the midpoints of Rambus' previous guidance ranges.
On the bottom line, that translated to net income of $103.2 million, or $0.93 per share, up sharply from $0.01 in the same year-ago period. And though that profit was bolstered primarily by a one-time $90.8 million gain on the divestiture of Rambus' PHY IP business during the quarter, adjusted earnings of $0.56 per share still handily exceeded expectations for $0.41.
Source Fool.com