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Rambus (NASDAQ: RMBS) had a week to forget, at least as far as its shares were concerned. The chip interface technologies company saw its stock price fall precipitously in the wake of its latest earnings release. All told, it lost nearly 29% over the course of the five trading days, according to data compiled by S&P Global Market Intelligence .

Steep decline on the bottom line

After market hours on Monday, Rambus bit the bullet and divulged its second-quarter figures. Among these was total revenue, which at over $132 million was 10% higher on a year-over-year basis. However, net income according to GAAP standards headed sharply in the other direction. It withered to slightly over $36 million ($0.33 per share) from Q2 2023's nearly $169 million.

Analysts were expecting higher numbers than that. Collectively, they were estimating that Rambus would book $139 million in revenue, and post a meatier per-share net income figure of $0.45.

Of its three revenue streams, the largest, product revenue, saw only a bump compared to the previous year's quarter. It took in $56.7 million in the second quarter, compared to $55 million for the year-ago period. Royalties leaped much higher, in contrast, surging 39% skyward to $56.4 million. Yet contract and other revenue sank over the one-year span, to $19 million from slightly over $24 million.

Selected and detailed guidance included

In the earnings release, Rambus published selected guidance for its current (third) quarter. Product revenue should come in at $62 million to $68 million, licensing billings are forecast at $60 million to $66 million, and contract and other revenue is anticipated to bring up the rear at $17 million to $23 million. Against this is operating costs/expenses of a projected $93 million to $97 million.

Rambus did not provide revenue or profitability guidance in the document.

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