Some of Rambus Inc. recent financial statements cannot “be relied upon” due to revenue-recognition misstatements and will have to be reissued, the chip maker has said in a regulatory filing.
said that its audit committee and executives determined that financial statements from September 2019 through December, including quarterly and year-to-date reports, “should no longer be relied upon due to understatements of revenue and unbilled receivables,” and will have to be restated.
Rambus stock on Friday was poised to end the week down 4%. The shares have gained 60% in the past 12 months, compared with an advance of around 49% for the S&P 500 index SPX.
Rambus said in the filing that a portion of revenue under a customer agreement, not yet recognized, should have been recognized in the third quarter of 2019.
That has resulted in understatements of revenue and unbilled receivables around $7 million to $8 million for the period in question, the company said. Rambus said it is working on figuring out exact amounts and the “full effect of the misstatements in the consolidated financial statements.”
The financial statements will be restated “as soon as practicable,” the company said in the filing.
It reaffirmed its guidance for the fiscal quarter ending this month, which came out when the chip maker reported fourth-quarter results in February.
Rambus then called for licensing billings between $60 million and $66 million, royalty revenue between $23 million and $29 million, product revenue between $27 million and $33 million, and contract and other revenue between $7 million and $13 million.
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