Rambus (NASDAQ: RMBS) reported Q3 EPS of ($0.16), $0.39 worse than the analyst estimate of $0.23. Revenue for the quarter came in at $57.4 million versus the consensus estimate of $89 million.

• Great quarter, exceeding expectations; GAAP revenue of $57.4 million; licensing billings of $63.1 million, product revenue of $21.4 million, and contract and other revenue of $16.6 million
• $25.6 million in cash provided by operating activities
• Refocused business on semiconductor with completed sale of payments and ticketing business to Visa
• Expanded silicon IP offerings with acquisition of digital controller IP provider, Northwest Logic, and agreement to acquire silicon IP and secure protocols businesses from Verimatrix
• Second consecutive quarter of record revenue for memory interface chip business

“Rambus delivered a great third quarter. We made tremendous progress toward the strategic objectives critical to our future and successfully realigned the Company around our core strengths in semiconductor,” said Luc Seraphin, chief executive officer of Rambus. “With record revenue from our memory interface chip business and continued silicon IP design wins at tier-one SoC customers, we exceeded our commitments to the market.”

2019 Fourth Quarter Outlook

For the fourth quarter of 2019, the Company expects licensing billings to be between $60 million and $66 million. The Company also expects royalty revenue to be between $15 million and $21 million, product revenue to be between $19 million and $25 million and contract and other revenue to be between $10 million and $16 million. Revenue is not without risk and achieving revenue in this range will require that the Company sign customer agreements for various product sales, solutions licensing among other matters.

The Company also expects operating costs and expenses to be between $74 million and $70 million. Additionally, the Company expects non-GAAP operating costs and expenses to be between $63 million and $59 million. These expectations also assume non-GAAP interest and other income (expense), net, of $1 million, tax rate of 24% (refer to non-GAAP financial information below - income tax adjustments) and diluted share count of 115 million, and exclude stock-based compensation expense ($7 million), amortization expense ($3 million), non-cash interest expense on convertible notes ($2 million) and interest income related to the significant financing component from fixed-fee patent and technology licensing arrangements ($5 million).

For earnings history and earnings-related data on Rambus (RMBS) click here.