RMBS ($12-$9) PE=30 Cap=$900mil....operating profit drops
But pro forma result tops consensus by 2 cents
siliconinvestor.com
By Deborah Adamson, CBS.MarketWatch.com
Last Update: 6:26 PM ET Oct. 16, 2001
LOS ALTOS, Calif. (CBS.MW) -- Rambus late Tuesday reported a 42 percent drop in fourth-quarter operating income from the same period a year ago, as sharply higher costs bit into the bottom line.
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But excluding one-time items, the company reported a pro forma profit that beat analysts' consensus expectation by 2 cents.
Shares of the memory-chip company (RMBS: news, chart, profile) were up 6 percent to $12.40 after hours. The stock closed at $11.72 in the regular session, up about 1 percent.
The company also authorized the repurchase of up to 5 million of its shares.
Rambus made an operating profit of $8.3 million in the quarter, down from $14.3 million last year. Its net income came to $6.5 million, or 6 cents a share, compared with last year's net income of $53.6 million, or 49 cents, but that includes a $38 million tax benefit.
Excluding one-time items, the Los Altos, Calif.-based company reported a pro forma profit of $6.6 million, or 6 cents a share. That's down from $10.2 million, or 9 cents, in 2000.
Analysts had expected Rambus to make 4 cents a share in the fourth quarter, according to Thomson Financial/First Call.
Revenue came in at $27.9 million, which is a tad higher than the $27.45 million expected by analysts. Last year, revenue was $26.9 million.
Looking forward, the company said first-quarter revenue should decrease by 10 to 15 percent sequentially. However, the company still expects to be profitable. Analysts expect a 4-cent pro forma profit.
In the third quarter, one highlight was a 27 percent quarter-over-quarter increase in royalties to $25 million.
The company also saved $1.8 million through lower litigation costs. However, total costs increased to $19.6 million from $12.7 million in the year-ago period, cutting into the bottom line.
For the year, the company's net income came in at $31.3 million, or 29 cents a share, compared with a 2000 net loss of $106.1 million, or $1.10 a share, largely inflated by a $171 million employee compensation expense.
Pro forma profits were $31.8 million, or 30 cents a share, beating expectations by 2 cents.
Rambus ended fiscal 2001 with revenue of $117.2 million vs. $72.3 million in 2000. Analysts had expected $112 million. |
