.13 undiluted
.12 diluted
biz.yahoo.com
Thursday January 11, 4:30 pm Eastern Time
Press Release
Rambus Reports Record Quarterly Royalties, Revenue, Earnings
Fiscal Q1 Royalties Increase 35% Sequentially to $26.8 Million
LOS ALTOS, Calif.--(BUSINESS WIRE)--Jan. 11, 2001--
Q1 earnings announcement call live on website (www.rambus.com) at 2:00 p.m. PDT. Conference call replay number 800-633-8284, reservation no. 17513649; replay also available on website. Replay available for 1 week, beginning at 4:00 p.m. PDT.
Rambus Inc. (Nasdaq:RMBS - news) today reported financial results for its first fiscal quarter ended December 31, 2000. Revenues for the quarter were a record $34.7 million, up 191% over the same period last year and up 29% from the previous quarter.
Included in first fiscal quarter results was a record $26.8 million in royalties, more than ten times the amount reported in the same period last year and up 35% from the previous quarter. The quarter's results included the initial royalties from Samsung and Mitsubishi for use of Rambus patents in SDRAMs, DDR SDRAMs and controllers that connect to them (SDRAM-compatible ICs).
Contract revenue for the first fiscal quarter of 2001 was $7.9 million, up from $7.0 million in the previous quarter. Included in the first quarter results was approximately $1.5 million of deferred revenue recognized due to the cancellation of the contract of a licensee who is reducing activities in the merchant DRAM market.
Excluding acquisition-related costs, pro forma operating income for the first fiscal quarter was $19.9 million (57% of revenues), compared to $2.9 million (25% of revenues) in the same period last year and $14.5 million (54% of revenues) in the previous quarter.
Because of the Company's substantially increased level of profitability and limited tax reduction opportunities, the tax rate for fiscal 2000 has been increased to 40% from 35% last year. Based on this tax rate, and excluding acquisition-related costs, first quarter pro forma net income was a record $13.2 million ($0.12 per diluted share), more than five times the amount reported in the same period last year and up 29% from the previous quarter. If the previous 35% tax rate were still applicable, the earnings for the quarter would have been higher by $0.01 per share. All per-share numbers have been adjusted for a four-for-one stock split effective June 14, 2000.
``Our first fiscal quarter results continue to show the strength of the Rambus business model,'' said Geoff Tate, CEO of Rambus Inc. ``We are pleased with the market reception for both the Sony PlayStation2 and the Intel Pentium 4, and we are confident that these products will drive the demand for RDRAM-compatible ICs to higher levels in fiscal 2001. However, we also recognize that an increasing percentage of our revenues is due to royalties on SDRAM-compatible ICs. With the price decrease for SDRAMs in the December quarter, it is unlikely that royalties for these products in our next (March) quarter will exceed the levels included in this report unless we sign additional licensees. In addition, we have moved to larger facilities for long-term growth and will be incurring increased costs in the near term due to the new facilities as well as our continuing vigorous legal defense of our IP.''
Rambus Inc. develops and licenses high-bandwidth chip connection technologies to enhance the performance of computers, consumer electronics and communications products. Providers of Rambus-based integrated circuits include the world's leading DRAM, ASIC and PC controller manufacturers.
This release contains forward-looking statements regarding financial results for future periods. Actual results could differ materially. Among the factors which could cause results to differ materially is the possibility that the Pentium 4 and PlayStation2 ramps will be slower than expected, that shipment of Rambus ICs and other licensed products by Rambus licensees will be below forecast, that SDRAM prices decline further, that no additional licenses for SDRAM-compatible ICs will be signed, that prices of RDRAMs will remain high compared to SDRAMs and that litigation and building costs will exceed the Company's plans.
RAMBUS INC.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
------------------------------
Dec. 31, Sept. 30, Dec. 31,
2000 2000 1999
--------- ---------- ---------
Revenues:
Contract revenues $ 7,869 $ 6,987 $ 9,319
Royalties 26,848 19,921 2,630
--------- ---------- ---------
Total revenues 34,717 26,908 11,949
--------- ---------- ---------
Costs and expenses:
Cost of contract revenues 2,220 2,666 3,501
Research and development 3,367 3,299 2,111
Marketing, general & administrative 9,247 6,472 3,399
--------- ---------- ---------
Total costs and expenses 14,834 12,437 9,011
--------- ---------- ---------
Operating income 19,883 14,471 2,938
Other income 2,071 1,254 997
--------- ---------- ---------
Income before income taxes 21,954 15,725 3,935
Provision for income taxes 8,782 5,504 1,377
--------- ---------- ---------
Net income $13,172 $10,221 $ 2,558
========= ========== =========
Net income per share - basic $ 0.13 $ 0.10 $ 0.03
========= ========== =========
Net income per share - diluted $ 0.12 $ 0.09 $ 0.03
========= ========== =========
Shares used in per share calculation:
Basic 98,551 98,001 95,038
Diluted 108,560 110,049 100,681
1. Note: Shares and per-share data adjusted for 4:1 stock split
effective June 14, 2000.
2. Pro forma income shown above excludes the effect of amortization
of goodwill and other acquisition-related intangibles of $221K in
the three months ended 12/31/00, $221K in the three months ended
9/30/00, and $143K in the three months ended 12/31/99; and a
one-time tax adjustment of $38 million in the three months ended
9/30/00.
3. This pro forma information is not prepared in accordance with
generally accepted accounting principles.
4. A reconciliation from pro forma net income to the reported results
is shown on the next table.
RAMBUS INC.
RECONCILIATION OF PRO FORMA NET INCOME TO REPORTED RESULTS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
Dec. 31, Sept. 30, Dec. 31,
2000 2000 1999
--------- ---------- ---------
Pro forma net income $13,172 $10,221 $2,558
Acquisition-related expenses (221) (221) (143)
Tax benefit 89 77 50
Tax adjustment -- 43,548 --
--------- ---------- ---------
Net income $13,040 $53,625 $2,465
========= ========== =========
Pro forma net income
per share - basic $ 0.13 $ 0.10 $ 0.03
Acquisition-related expenses (0.00) (0.00) (0.00)
Tax adjustment -- 0.45 --
--------- ---------- ---------
Net income per share - basic $ 0.13 $ 0.55 $ 0.03
========= ========== =========
Pro forma net income
per share - diluted $ 0.12 $ 0.09 $ 0.03
Acquisition-related expenses (0.00) (0.00) (0.01)
Tax adjustment -- 0.40 --
--------- ---------- ---------
Net income per share - diluted $ 0.12 $ 0.49 $ 0.02
========= ========== =========
Note: Per-share data adjusted for 4:1 stock split effective June
14, 2000.
RAMBUS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
Dec. 31, Sept. 30, Dec. 31,
2000 2000 1999
--------- ---------- ---------
Revenues:
Contract revenues $ 7,869 $ 6,987 $ 9,319
Royalties 26,848 19,921 2,630
--------- ---------- ---------
Total revenues 34,717 26,908 11,949
--------- ---------- ---------
Costs and expenses:
Cost of contract revenues 2,220 2,666 3,531
Research and development 3,588 3,520 2,224
Marketing, general & administrative 9,247 6,472 3,399
--------- ---------- ---------
Total costs and expenses 15,055 12,658 9,154
--------- ---------- ---------
Operating income 19,662 14,250 2,795
Other income 2,071 1,254 997
--------- ---------- ---------
Income before income taxes 21,733 15,504 3,792
Provision for income taxes (benefit) 8,693 (38,121) 1,327
--------- ---------- ---------
Net income $ 13,040 $ 53,625 $ 2,465
========= ========== =========
Net income per share - basic $ 0.13 $ 0.55 $ 0.03
========= ========== =========
Net income per share - diluted $ 0.12 $ 0.49 $ 0.02
========= ========== =========
Shares used in per share calculation:
Basic 98,551 98,001 95,038
Diluted 108,560 110,049 100,681
Note: Shares and per-share data adjusted for 4:1 stock split
effective June 14, 2000.
RAMBUS INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
Dec. 31, Sept. 30, Dec. 31,
2000 2000 1999
--------- ---------- ---------
(unaudited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 71,212 $ 63,093 $ 5,544
Marketable securities 55,507 59,127 82,135
Accounts receivable 1,788 68 2,478
Prepaid and deferred taxes 21,220 17,661 7,423
Prepaids and other current assets 2,977 2,988 2,244
--------- ---------- ---------
Total current assets 152,704 142,937 99,824
Property and equipment, net 12,161 6,724 4,029
Marketable securities,
less current portion 14,599 7,548 1,509
Restricted cash 2,773 2,500 2,500
Deferred taxes, long-term 55,404 55,404 3,126
Other assets 4,071 4,518 2,020
--------- ---------- ---------
Total assets $ 241,712 $ 219,631 $ 113,008
========= ========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
other current liabilities $ 10,312 $ 9,032 $ 3,561
Current portion of deferred revenue 21,719 24,155 29,542
--------- ---------- ---------
Total current liabilities 32,031 33,187 33,103
Deferred revenue, less current portion 24,498 24,122 14,629
--------- ---------- ---------
Total liabilities 56,529 57,309 47,732
--------- ---------- ---------
Stockholders' equity:
Common stock 98 97 24
Additional paid-in capital 295,596 285,885 80,563
Deferred stock-based compensation (543) (571) (719)
Accumulated deficit (110,092) (123,132) (14,540)
Accumulated other
comprehensive gain (loss) 124 43 (52)
--------- ---------- ---------
Total stockholders' equity 185,183 162,322 65,276
--------- ---------- ---------
Total liabilities
and stockholders' equity $ 241,712 $ 219,631 $ 113,008
========= ========== =========
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Contact:
Rambus Inc.
Gary G. Harmon, 650/947-5000 (Sr. VP, Finance & CFO)
Susan Berry, 650/947-5050 (Investor Relations) |
