Rambus (NAS: RMBS) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rambus missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly and GAAP loss per share contracted.


Gross margins dropped, operating margins dropped, net margins grew.

Revenue details
Rambus logged revenue of $57.4 million. The two analysts polled by S&P Capital IQ looked for a top line of $60.3 million on the same basis. GAAP reported sales were 31% lower than the prior-year quarter's $83.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.14. The two earnings estimates compiled by S&P Capital IQ forecast -$0.12 per share. GAAP EPS were -$0.14 for Q4 against -$0.26 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 89.0%, 210 basis points worse than the prior-year quarter. Operating margin was -5.7%, 2,030 basis points worse than the prior-year quarter. Net margin was -28.1%, 630 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $60.6 million. On the bottom line, the average EPS estimate is -$0.09.

Next year's average estimate for revenue is $280.5 million. The average EPS estimate is $0.00.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 431 members out of 521 rating the stock outperform, and 90 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give Rambus a green thumbs-up, and 15 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rambus is outperform, with an average price target of $7.33.

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The article The Gory Details on Rambus's Double Fumble originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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