Rambus Inc (RMBS) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $3.44 million, or $ 0.03 a share in the quarter, against a net profit of $12.99 million, or $0.11 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $18.69 million, or $0.16 a share compared with $20.65 million or $0.18 a share, a year ago. Revenue during the quarter grew 27.07 percent to $97.56 million from $76.77 million in the previous year period. Gross margin for the quarter contracted 713 basis points over the previous year period to 78.10 percent. Total expenses were 99.46 percent of quarterly revenues, up from 73.51 percent for the same period last year. That has resulted in a contraction of 2595 basis points in operating margin to 0.54 percent.
Operating income for the quarter was $0.52 million, compared with $20.33 million in the previous year period.
However, the adjusted operating income for the quarter stood at $30.06 million compared to $33.42 million in the prior year period. At the same time, adjusted operating margin contracted 1271 basis points in the quarter to 30.81 percent from 43.53 percent in the last year period.
Commenting on the results, 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.”
For the first-quarter, Rambus forecasts revenue to be in the range of $93 million to $98 million. Rambus expects adjusted net income to be in the range of $14.30 million to $19.50 million for the first-quarter. The company forecasts adjusted operating income to be in the range of $23 million to $31 million for the first-quarter. The company expects diluted earnings per share to be in the range of $0.02 to $0.06 for the first-quarter. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.13 to $0.17 for the first-quarter.
Working capital drops significantly
Rambus Inc has witnessed a decline in the working capital over the last year. It stood at $165.48 million as at Dec. 31, 2016, down 42.39 percent or $121.74 million from $287.22 million on Dec. 31, 2015. Current ratio was at 4.23 as on Dec. 31, 2016, down from 11.13 on Dec. 31, 2015.
Debt moves up
Rambus Inc has witnessed an increase in total debt over the last one year. It stood at $126.17 million as on Dec. 31, 2016, up 5.65 percent or $6.75 million from $119.42 million on Dec. 31, 2015. Rambus has witnessed an increase in long-term debt over the last one year. It stood at $126.17 million as on Dec. 31, 2016, up 5.65 percent or $6.75 million from $119.42 million on Dec. 31, 2015. Total debt was 16.10 percent of total assets as on Dec. 31, 2016, compared with 16.60 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.23 as on Dec. 31, 2016, when compared with the last year. Interest coverage ratio deteriorated to 0.16 for the quarter from 6.51 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
