Orlando, FL 7/20/12 (StreetBeat) – Rambus Inc. (Nasdaq: RMBS) missed Wall Street’s earnings targets by $.09 per share in its Q2 report, causing shares to plunge 15% to $4.43. The stock has dropped 37% in 2012, and the company cites 15% lower sales year over year on “decrease in contract revenue, lower royalties reported by certain licensees and expiration of a patent license agreement.”
According to Motley Fool, the company is spending less on expensive litigation campaigns than it used to, but operating costs are way up anyhow. This it due to Rambus’ trying its hand at growth by acquisition, incurring a variety of costs for the add-on operations. Rambus received its first royalty payment from a recent Broadcom agreement, but it wasn’t enough to balance out Rambus’ challenges.
Rambus is currently a one-star CAPs stock (out of five). The company plans to explore pathways such as its new LED lighting research, hoping for about 15% of its revenue out of that division in 2013.
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