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Earnings Preview: Rambus
Monday April 17, 5:07 pm ET
Rambus Shares Could Surge on Verdict From Hynix Trial
NEW YORK (AP) -- Rambus Inc., a developer of high-speed computer chip interfaces, reports first-quarter earnings on Wednesday, April 19. The following is a summary of key developments and analyst opinion related to the period.
OVERVIEW: Rambus -- which has been embroiled in a handful of patent infringement and price-fixing lawsuits with several companies including Hynix Semiconductor Inc., Micron Technology Inc. and Samsung Semiconductor Inc. -- is awaiting the verdict on a patent infringement case against Hynix Semiconductor, which one analyst suspects could be a victory for the company, even if it is a small one.
EXPECTATIONS: In March the company lifted its revenue outlook to between $45 million and $48 million, up from a previous forecast for $41 million to $43 million. Analysts polled by Thomson Financial expect the company to earn, on average, 7 cents per share on $46.5 million in revenue.
ANALYST TAKE: W.R. Hambrecht analyst Daniel Amir believes the Hynix trial could be a milestone case, and he believes Rambus could win the case along with $150 million in damages.
"Overall, we believe that Rambus should win the trial. While we are uncertain whether Rambus will win all claims; in our opinion it is enough that the company gets awarded on one patent infringement and the company has achieved its goal," Amir wrote in a note. "Our view is that Rambus is likely to win this case and we would be buyers of the stock ahead of the verdict
biz.yahoo.com
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