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Rambus Shares Fall as Q3 Revenue Rises but Profit Stalls

Flat profit despite higher sales spurred a sell-off.

Overview

  • Rambus reported third-quarter revenue of $178 million, up roughly 23% year over year, with net income unchanged at $48 million.
  • Shares dropped 8.71% on Tuesday to $103.72, ending a three-day run of gains after the earnings release.
  • CEO Luc Seraphin called the quarter very strong and said the company is positioned for long-term growth tied to data-center demand and AI.
  • Outlook for Q4 includes projected sales of $184 million to $190 million with adjusted EPS of $0.64 to $0.71, and separate guidance details cite product revenue of $94 million to $100 million and contracts and other revenue of $25 million to $31 million.
  • The published coverage notes an internal discrepancy in the Q3 revenue breakdown, with component figures exceeding the stated total, which warrants checking against the official filing.