Rambus Inc Shares Down On 4th Quarter Loss Despite More Postive Results
Ticker.tv News | Jan 31, 2017 08:04AM ET
Rambus Inc (NASDAQ:RMBS)
Rambus Inc. (RMBS), a leading semiconductor company yesterday reported their fiscal fourth quarter 2016 financial results. Rambus reported a fourth quarter loss of $3.4 million. Rambus reported fourth quarter adjusted earnings of $0.16 per share which is exactly what analysts were expecting. Rambus reported fourth quarter revenues of $97.6 million which beat analyst estimates of $96 million.
Rambus Inc. CEO’s Comments
Chief executive officer Dr. Ron Black stated, “Our activity throughout 2016 has prepared us well for profitable growth moving into 2017. Our memory and interfaces business continues to perform well with the ability to accelerate our customer engagements for the data center. We also have several avenues of exciting opportunities to extend beyond our historic business, particularly as we move closer to the consumer with offerings serving the mobile edge.” Business Wire
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RMBS opened trading yesterday at $13.76 which was down from the previous day’s trading close of $13.89. RMBS closed trading yesterday at $13.98 and crashed down after market to $13.22, equivalent to a 5% decrease from the closing price. Taking a look at the daily chart we can see that the last time RMBS traded below these levels we have to go back to December 5th, 2016 when it traded at $12.98.
Taking a closer look at the daily chart we can see that before the spike down RMBS had already been in an overall upward trend dating back to December 9th, 2016 when it traded at $14.27. RMBS has a float of 109.71 million shares and traded 1.58 times the normal daily trading volume on Monday. For trading purposes, I would like to see RMBS open trading on Tuesday below $13.50 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.15 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Rambus Inc., incorporated on February 3, 1997, produces semiconductor and intellectual property (IP) products, spanning memory and interfaces to security, sensors and lighting. The Company’s products are integrated into devices and systems, powering and securing diverse applications, including big data, Internet of things (IoT), mobile, consumer and media platforms. The Company’s segments include Memory and Interfaces Division (MID) and Cryptography Research Division (CRD).
The Company has over four operational units, including MID, CRD, emerging solutions division (ESD), and lighting and display technologies (LDT). MID focuses on the design, development and licensing of technology that is related to memory and interfaces. CRD focuses on the design, development and licensing of technologies for chip and system security, anti-counterfeiting, smart ticketing and mobile payments. ESD includes its computational sensing and imaging group along with its development efforts in the area of emerging technologies. LDT focuses on the design, development and licensing of technologies for lighting. The Company’s inventions and technology solutions are offered to its customers through patent licenses, technology licenses, software licenses and the shipment of products.
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