Technology company Rambus (NASDAQ: RMBS) reported a loss of 8 cents per share in the first quarter of 2019, even as analysts were expecting earnings of 23 cents per share.
Revenue rose 4% to $48.4 million during the quarter but fell shy of the street projection of $99.01 million.
Investors sent the stock down over 13% immediately following the disappointing earnings announcement. The stock has declined 12.6% during the trailing 52-week period. In the year-to-date period, the stock has grown by 45%.
For Q2, the company expects operating costs and expenses between $77 million and $81 million. On an adjusted basis, operating costs and expenses are projected in the range of $69 million to $65 million.
READ: MICROSOFT Q3 EARNINGS PREVIEW
CEO Luc Seraphin said, “We have refocused and augmented our product portfolio around our core strengths in semiconductor, to enable new design wins and increased market share.”
Rambus, which develops chip interface technologies for electronics, earlier this year acquired memory technology assets of Diablo Technologies, in a move to diversify its portfolio. Terms of the deal were not disclosed.
Rambus has a 12-month average price target of $12.50, suggesting a 5.7% upside from the last close.