Boston, MA 06/12/2014 (wallstreetpr) – Rambus Inc. (NASDAQ:RMBS) ramps up 9% with two major announcements on Wednesday.
The first big news Rambus shared was its integration with the manufacturer of digital communications products, QUALCOMM, Inc. (NASDAQ:QCOM). The technology solutions company has entered into a comprehensive patent license deal with Qualcomm global Trading Pte. Ltd., a Qualcomm subsidiary. The company announced that Qualcomm will be combining the Crypto Manager Security Engine with its own chips.
Rambus Inc. (NASDAQ:RMBS) sees this agreement as a chance to work with industry leaders such as Qualcomm. The deal will allow Qualcomm and its subsidiaries to access innovative patented interface, memory and securities technologies developed by Rambus’ Cryptography Research (CRI) unit. These technologies encompass ways of protection of integrated circuit Systems on a Chip from differential power analysis as well as other side channel assaults. In addition, Qualcomm will also be allowed access to some of Rambus’ high efficiency and low power innovations as per the terms of the deal. Further terms of the agreement are however kept confidential.
Increased Expected Revenue
Rambus Inc. (NASDAQ:RMBS) made another important announcement on Wednesday morning as it increased the guidance, independent of the probable sales from the new agreement. The company increased the outlook for the second quarter revenue from the earlier projection which was in the range of $69 million and $74 million to the new range lying between $75 million and $77 million. The company however said that it does not know if the revised expected revenue is due to the potential sales that the new agreement will fetch. Rambus also increased full year revenue to $305 million, from the previously expected $295 million.
Rambus Inc. (NASDAQ:RMBS)’ shares noticed a hike after the company shared the news and surged 8.4% to $13.40 in pre market trading yesterday. Analysts commented that since volume is low, traders could expect big moves upwards or downwards alike.
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