$0.10 diluted--MOUNTAIN VIEW, Calif., Jan 18, 2000 (BUSINESS WIRE) -- Rambus Inc.
(Nasdaq:RMBS) today reported financial results for the three months
ended December 31, 1999.
First quarter revenues of $11.9 million were up 13% over the same
period last year, but down 3% compared to the previous quarter.
Operating income for the quarter was $2.8 million, compared to $2.4
million in the same period last year and $3.4 million in the previous
quarter. First quarter diluted earnings per share were $0.10 compared
to $0.08 in the same period last year and $0.10 in the previous
quarter.
The Company reported royalties for the quarter of $2.6 million, an
increase from $1.7 million reported in the previous quarter. It said
that it believed this increase was primarily due to seasonal shipments
of Rambus ICs used in the Nintendo 64 video game system. During the
same period contract revenue decreased from $10.6 million to $9.3
million mainly due to the ending of revenue recognition on the TI DRAM
contract.
During the December quarter, two Intel chipsets were released which
allow the use of Rambus technology in desktop PCs and workstations.
Rambus DRAM licensees are now ramping production of Rambus DRAMs, and
major PC OEMs including Dell, Compaq, HP and IBM have introduced
Rambus-based systems. During the next two quarters the Company expects
to see the first royalties from the shipment of Rambus ICs for use in
these systems as well as in the Sony PlayStation 2. In addition, during
this same time period the Company anticipates a significant increase in
short-term contract revenue due to its cancellation of the contracts of
certain licensees who are reducing their activities in the DRAM market.
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 contract cancellations will not occur, and that
shipment of Rambus ICs by Rambus licensees will be below forecast.
RAMBUS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
Dec. 31, Sept. 30, Dec. 31,
1999 1999 1998
Revenues:
Contract revenues $ 9,319 $10,630 $ 7,948
Royalties 2,630 1,675 2,626
Total revenues 11,949 12,305 10,574
Costs and expenses:
Cost of contract revenues 3,531 3,701 2,102
Research and development 2,224 1,425 3,089
Marketing, general & administrative 3,399 3,733 2,970
Total costs and expenses 9,154 8,859 8,161
Operating income 2,795 3,446 2,413
Other income 997 770 1,012
Income before income taxes 3,792 4,216 3,425
Provision for income taxes 1,327 1,563 1,370
Net income $ 2,465 $ 2,653 $ 2,055
Net income per share $ 0.10 $ 0.11 $ 0.09
Net income per share-assuming dilution $ 0.10 $ 0.10 $ 0.08
Shares used in per share calculation:
Basic 23,759 23,606 23,034
Assuming dilution 25,170 25,291 24,874
RAMBUS INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
Dec. 31, Sept. 30, Dec. 31,
1999 1999 1998
(unaudited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 5,544 $ 14,982 $ 31,900
Marketable securities 82,135 72,158 54,431
Accounts receivable 2,478 1,499 2,033
Prepaids and other current assets 9,985 9,839 10,236
Total current assets 100,142 98,478 98,600
Property and equipment, net 4,029 4,232 3,788
Marketable securities, long term 1,509 5,658 5,093
Restricted cash 2,500 2,500 --
Investments 100 100 398
Other assets 5,701 4,805 5,576
Total assets $113,981 $115,773 $113,455
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other current
liabilities $ 4,003 $ 4,425 $ 3,191
Current portion of capital lease
obligations -- -- 76
Current portion of deferred revenue 29,542 32,279 27,519
Total current liabilities 33,545 36,704 30,786
Deferred revenue, less current portion 14,629 17,505 35,845
Other long-term liabilities 531 -- --
Total liabilities 48,705 54,209 66,631
Stockholders' equity:
Common stock 24 24 23
Additional paid-in capital 79,844 78,574 70,446
Accumulated deficit (14,540) (17,005) (23,668)
Cumulative translation adjustment (52) (29) 23
Total stockholders' equity 65,276 61,564 46,824
Total liabilities and stockholders'
equity $113,981 $115,773 $113,455
Copyright (C) 2000 Business Wire. All rights reserved.
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CONTACT: Rambus Inc.
Gary G. Harmon, 650/944-8000
Susan Berry, 650/944-7900
WEB PAGE: businesswire.com
GEOGRAPHY: CALIFORNIA
INDUSTRY CODE: SOFTWARE
HARDWARE
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