RMBS CC Notes and stuff
Misc from the web:
Reports Q1 earnings of $0.12 a share, $0.01 worse than the First Call consensus of $0.13, vs year-ago earnings of $0.09; revenues rose 190.5% to $34.72 mln from a year-ago of $11.95 mln. Note: 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. If the previous 35% tax rate were still applicable, the earnings for the quarter would have been higher by $0.01 per share;
Rambus, a Mountain View, Calif., company, designs chips that are used by chipmakers like Intel to speed up software applications. The Sony PlayStation 2, for instance, uses Rambus-designed chips (called RDRAM), and Intel uses Rambus-designed chips in conjunction with its recently released Pentium 4 chips.
The company said an increasing part of its revenue is from royalties on SDRAM-compatible chips and that the price decrease for SDRAM in the December quarter makes it unlikely that royalty revenue in the March quarter will increase.
PR Info:
- 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.
- 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.
- Contract revenues $ 7.869M vs. $ 6.987M last Q and $ 9.319M y2y
- Royalties rev 26.848M vs. 19.921M last Q and 2.630M y2y
CC Notes
- Gary Harmon speaks: CFO (Geoff Tate is CEO)
- 140M annual run rate on revs
- Royalty rev is 77% vs 22% last year, up 35% q2q
- Samsung and Mitsubishi revs included for the first time.
- We lags the semi industries in the cycle
- SDRAM prices decrease in December and will impact March Q
- Operating expense increase 19% y2y
- Op Margin was 57%
- Focusing on high speed versions of our chip technology
- SG&A increased 43% q2q due to litigation, expect further increases in litigation costs
- Moved to new building
- 221K in acquisition costs
- 144M in cash
- Geoff speaks:
- RDRAM is mainstream memory standard, just fifth in history
- 150 system use our RDRAMs
- sig progress is made in consumer products using RDRAM like
- Introduce RDRAM in SONY, Panasonic product in set boxes, DVDs? and others
- P4 850 chipset used RDRAM
- Made progress in connecting routers and will announce licensees next quarter
- Alpida is a joint venture between Hitachi, RMBS, and xxxx have 45% share of logic chips
- Infineon, Micron, and Hyundai are in ligitation
- Infineon is set for trial March 13 in VA and in Germany in May
- Hyundai sued in CA, We sue them Germany for Feb 16th
- Micron is in DE and set for Oct and Germany in May
- We have QSR product which will double data rates ready for introduction
- Q&A
- We will reduce price premium on RDRAM to ramp production for the P4 for our three partners, probably 20% reduction in price
- High learning curve for engineer in our partners to work with RDRAM
- Q1 legal was 4M, Q2 will be higher since it will go to three trial, probably 4.5M. A lot of prep has taken place. New legal actions filed by the other three companies drove up our price. Trying to outspend us is the tactic.
- 175 ees on board.
- Deferred revs was Samsung and Mitsubishi
- Always willing to negoiate on the legal
- HDTV in Japan rollout , sales are going well and broadcast is being well recieeved. Very different is much different than US HDTV. Not factoring revs for our ests.
- Royalties agreements are confidential but can look at market share it is proportionate
- Pay a quarterly license fee for 60 months with an upfront fee
- Pricing for SDRAM is falling in December and hard to guage future. A good portion of our royalty comes from controllers in the SDRAM.
- Average RDRAM price on a P4 was $13-16?
Jack |
