Rambus Lowers Revenue Forecast

LOS ALTOS, Calif. -- Memory chip company Rambus(RMBS Quote) lowered its guidance for the second quarter ending June 30 and announced a public debt offering.

The company said it now expects revenue for the quarter to be between $26.7 million and $27.2 million, lower than the $27 million to $30 million it previously forecasted.

Adjusted operating expenses for the quarter, excluding stock-based compensation expenses and any stock-based compensation restatement expenses or benefits, are expected to be between $42 million and $45 million, which includes litigation expenses between $15 million and $17 million.

Earlier estimates were for a range of $43 million to $48 million, which included litigation expenses in the range of between $12 million and $16 million.

"Our updated guidance reflects the impact of the current macro-economic situation and its effect on the sales of semiconductors and consumer electronic systems," said CEO Harold Hughes, in a statement.

The company also announced plans to offer $150 million of convertible senior notes due 2014 in an underwritten registered public offering.

Rambus also expects to grant the underwriters a 12-day option to purchase up to an additional $22.5 million of the notes to cover over-allotments.

Prior to March 15, 2014, the notes will be convertible only upon specified events and, thereafter until maturity, at any time. Upon conversion, the notes will be settled by the payment of cash up to the principal amount of the notes and, with respect to any excess conversion value, by delivery of shares of Rambus' common stock.