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Research Alert: Largely In-line Quarter And Guidance Not Good Enough For Investors

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

RMBS posted Q1 revenue of $180.2M (+8% Y/Y), beating the $170M consensus, driven by product revenue of $88.0M (+15% Y/Y) from DDR5 leadership and AI solutions. Non-GAAP EPS of $0.63 (+7% Y/Y) missed the $0.64 consensus despite strong top-line performance. The continued strength in memory interface solutions reflects sustained market leadership as data center and AI applications demand higher bandwidth capabilities. Q2 guidance implies total revenue of $199M at midpoint, with product revenue projected at $95M-$101M and licensing billings of $76M-$82M. Operating margins faced pressure, declining to 42% non-GAAP due to higher expenses, though cash generation remained strong at $83.2M. The balance sheet strengthened with cash reaching $786.1M and no long-term debt, providing resources for R&D investment. We believe the revenue mix shift toward higher-growth products (now 49% of total) positions RMBS well, though we caution that memory constraints or server bottlenecks could create headwinds going forward.

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