Rambus Giving Some Up & Raising Cash (RMBS)

Rambus Inc. (NASDAQ: RMBS) is tempering some of its guidance, which may lend at least some additional credence that investors need to keep justifying higher prices on news that is only so-so or only supports green shoots.  Rambus revised its June quarter guidance for revenue to be between $26.7 million and $27.2 million .  Rambus had initially provided revenue guidance for the quarter of between $27 million and $30 million.

The company noted that adjusted operating expenses for the quarter (excluding stock and compensation restatement expenses) will be between $42 million and $45 million, including litigation expenses between $15 million and $17 million.  Rambus previously set that range at $43 million to $48 million, which included litigation expenses of between $12 million and $16 million.

The company noted that this weakness “reflects the impact of the current macro-economic situation and its effect on the sales of semiconductors and consumer electronic systems.”  While it aims to keep costs lower, it continues to see legal expenses varying depending upon the progress of its patent cases.

The company also disclosed that it was selling some $150 million senior convertible notes due in 2014 in a public offering.  The purpose: general corporate purposes.

Generally speaking, investors like to see good news or solid news when a company also announces it is raising capital.

Shares of Rambus closed down 4.6% at $17.83 in regular trading, and we show shares in after-hours trading at $16.50.  The 52-week range is $4.95 to $ $21.87.

Jon C. Ogg
June 22, 2009