Rambus Inc. (RMBS) stock plummeted 3.36% in the premarket trading session at the price of $22.70 after reporting its financial results for the third quarter of 2021. RMBS provides silicon IP and industry-leading chips that make data faster and secure. Its high-performance processing subsystems resolve the bottleneck between memory and processing for the data-intensive systems.
RMBS Third Quarter 2021 Financial Results
On 1st November 2021, RMBS announced its financial results for the third quarter ended on 30th September 2021 and provided corporate updates.
Financial Highlights
RMBA reported revenue of $81.3 million for the third quarter ended 30th September 2021. It reported $66.1 million in licensing billings and $36.7 million in product revenue. The cost of revenue was approximately $18.4 million for the third quarter of 2021. RMBS reported operating costs of $58.2 million for the third quarter ended 30th September 2021. For the third quarter of 2021, net income per share (diluted) was $0.03. As of 30th September 2021, cash and cash equivalents were approximately $419.7 million. It represents a drop of $57.4 million from 30th June 2021. The company also produced $46.0 million in cash from operating activities.
RMBS Fourth Quarter 2021 Outlook
RMBS expects licensing billings to range from $62 million to $68 million for the fourth quarter of 2021. The royalty revenue expects to be from $26 million to $32 million and product revenue from $40 million to $46 million. The company anticipates operating costs to be from $80 million to $76 million.
Management Comments
Chief executive officer of RMBS, Luc Seraphin, remarked that they had delivered strong third-quarter results. They are well-positioned to achieve profitable growth in memory interface chips. They continue to scale the growth as the integrations of PLDA and AnalogX are well-advancing. Their new management teams keep presenting more products and designs, he added.
Resignation of Chief Financial Officer
Previously, on 13th October 2021, RMBS published that chief financial officer, Rahul Mathur, has resigned from the company. The resignation will be effective from 15th November 2021. He has departed the company to seek another opportunity outside of the semiconductor industry. The current vice president, chief accounting officer, and corporate controller of RMBS, Keith Jones, will work as interim CFO until the new officer gets allocated.
