Rambus Boosts 3Q Revenue Outlook

LOS ALTOS, Calif. (AP) — Memory chip designer Rambus Inc. on Tuesday raised its revenue forecast and lowered its cost expectations for the quarter through September, thanks to higher chip demand and lower expected legal bills.

The company said it expects revenue in the three months through Sept. 30 to be between $27 million and $28 million, above the $22 million to $25 million forecast earlier.

A rise in semiconductor shipments and a corresponding increase in royalty revenues was the driver, the company said.

It also said it expects its costs to be between $41 million and $44 million, down from an earlier estimate of between $44 million and $49 million, thanks to a delayed trial date and lower engineering expenses.

Rambus shares rose 42 cents, or 2.3 percent, to $18.45 in after-hours trading Tuesday following the announcement, after closing up 28 cents, or 1.6 percent, at $18.03 in the regular session.