Rambus Reports March Quarter Earnings; Earnings Per Share of 5 Cents
LOS ALTOS, Calif., Apr 14, 2003 (BUSINESS WIRE) --
Rambus Inc. (Nasdaq:RMBS), a leading provider of chip-to-chip interface products and services, today reported financial results for its second fiscal quarter ended March 31, 2003. Earnings per share for the March quarter were 5 cents, compared to 7 cents in the same period last year and 6 cents in the previous quarter. Net income for the March quarter was $5.1 million (18% of revenues), compared to $6.7 million in the same period last year and $5.5 million in the previous quarter. Revenue for the quarter was $28.1 million, up 19% over the same period last year and up 9% from the previous quarter.
"This quarter reflects the progress that we are making with our new Yellowstone and Redwood interface solutions. The increase in both revenue and engineering spending is primarily driven by new contracts with Sony and Toshiba," said Geoff Tate, CEO of Rambus Inc.
March quarter results reflect $3.3 million in contract revenue, up 90% over the same period last year and up 137% from the previous quarter. This increase in contract revenue primarily reflects the contracts signed recently for Yellowstone and Redwood technology. March quarter results include $24.8 million in royalties, up 14% over the same period last year and up 2% from the previous quarter. Royalties were up primarily due to DDR memories and SDRAM memory controllers.
Total costs and expenses in the March quarter increased $4.7 million from last quarter primarily as a result of an increase in litigation costs, an increase in investment in research and development and an increase in the cost of contract revenue. The increase in litigation costs was driven primarily by costs associated with preparing for the upcoming trial with the Federal Trade Commission. The increases in research and development and the cost of contract revenue are driven by the investment required to meet the milestones on the contracts signed for Yellowstone and Redwood. Total costs and expenses were $23.6 million versus $18.9 million last quarter and $14.8 million in the comparable period last year.
The March quarter results include a pre-tax gain of $1.2 million, comprised of Other Income of $1.7 million less research and development expense of $.5 million, resulting from the divestiture of Rambus's investment in NurLogic Design, Inc. which was acquired by Artisan Components during the quarter. The divestiture resulted in the receipt of cash, stock and an intellectual property license.
Fiscal Q2 FY2003 earnings announcement call live on website (www.rambus.com) today at 1:30 p.m. PDT. Conference call replay number 800-642-1687 ID number 9635397; replay also available on website. Replay available for one week, beginning at 5:00 p.m. PDT.
About Rambus Inc.
Rambus is a leading provider of chip-to-chip interface products and services. The company's breakthrough technology and engineering expertise have helped leading chip and system companies to solve their challenging I/O problems and bring industry-leading products to market. Rambus' interface solutions can be found in numerous computing, consumer electronic and networking products. Additional information is available at www.rambus.com.
This release and the conference call on today's date contain forward-looking statements under the Private Securities Litigation Reform Act of 1995 regarding the Company's financial prospects, development plans, anticipated product shipment dates, litigation prospects, relations with licensees and other third parties and various other matters. Such forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs, and certain assumptions made by the Company's management. Actual results may differ materially. Among the reasons which could cause actual results to differ materially are the possibility of inadequate shipments of Rambus RDRAM memory devices and controllers for the Sony PlayStation2 and the PC main memory market, the market response to these products, the continued deterioration in the DRAM market, any delay in the development of Rambus-based products by licensees, any delay in the development and shipment of new Rambus products, any delay in the development and shipment of products compatible with Rambus products, a strong response of the market to competing technology, a lack of progress on price and cost reduction by RDRAM suppliers, a failure to sign new contracts or maintain existing contracts for RDRAM, Yellowstone, RaSer or SDRAM-compatible and DDR-compatible ICs, adverse litigation decisions and other factors that are described in our SEC filings including our 10-K and 10-Qs.
RAMBUS INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited)
Three Months Ended Six Months Ended ---------------------------------------- March December March March March 31, 31, 31, 31, 31, 2003 2002 2002 2003 2002 Revenues: Contract revenues $3,267 $1,379 $1,722 $4,646 $4,806 Royalties 24,812 24,325 21,809 49,137 43,589 ---------------------------------------- Total revenues 28,079 25,704 23,531 53,783 48,395 ---------------------------------------- Costs and expenses: Cost of contract revenues 3,210 1,595 1,842 4,805 4,000 Research and development 7,267 6,518 5,226 13,785 10,346 Marketing, general & administrative 6,054 6,274 6,121 12,328 11,636 Litigation expense 7,077 4,480 1,629 11,557 6,138 ---------------------------------------- Total costs and expenses 23,608 18,867 14,818 42,475 32,120 ---------------------------------------- Operating income 4,471 6,837 8,713 11,308 16,275 Interest and other income, net 2,984 1,294 1,669 4,278 3,606 ---------------------------------------- Income before income taxes 7,455 8,131 10,382 15,586 19,881 Provision for income taxes 2,386 2,602 3,634 4,988 6,959 ---------------------------------------- Net income $5,069 $5,529 $6,748 $10,598 $12,922 ======================================== Net income per share - basic $0.05 $0.06 $0.07 $0.11 $0.13 ======================================== Net income per share - diluted $0.05 $0.06 $0.07 $0.10 $0.12 ======================================== Shares used in per share calculations: Basic 97,169 97,436 99,948 97,304 100,180 Diluted 103,785 100,209 102,945 101,699 103,596
RAMBUS INC. CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited)
March December September 31, 31, 30, 2003 2002 2002 ASSETS Current assets: Cash and cash equivalents $ 21,475 $ 28,656 $ 21,454 Marketable securities 43,421 36,081 65,083 Accounts receivable 4,399 1,080 312 Prepaid and deferred taxes 10,236 7,824 6,073 Prepaids and other current assets 2,266 2,648 3,011 Total current assets 81,797 76,289 95,933 Property and equipment, net 12,078 12,375 13,277 Marketable securities, long-term 105,914 111,095 69,592 Restricted investments 12,320 11,986 12,576 Deferred taxes, long-term 32,554 32,777 35,527 Other assets 5,527 6,001 6,054 Total assets $250,190 $250,523 $232,959 Total cash, cash equivalents, marketable securities and restricted investments $183,130 $187,818 $168,705
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and other current liabilities $ 13,510 $ 10,386 $ 10,480 Deferred revenue 21,820 22,218 11,086 Total current liabilities 35,330 32,604 21,566 Deferred revenue, less current portion 16,278 15,542 15,901 Total liabilities 51,608 48,146 37,467 Stockholders' equity: Common Stock 97 97 97 Additional paid-in capital 254,120 262,839 261,734 Deferred stock-based compensation -- -- -- Accumulated other comprehensive gain 924 1,069 818 Accumulated deficit (56,559) (61,628) (67,157) Total stockholders' equity 198,582 202,377 195,492 Total liabilities and stockholders' equity $250,190 $250,523 $232,959 Rambus Inc. Bob Eulau, 650/947-5000 (Sr. VP, Finance & CFO) Nicole Noutsios, 650/947-5050 (Investor Relations) businesswire.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page.
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