Rambus Reports Results for the First Fiscal Quarter
MOUNTAIN VIEW, Calif. (BUSINESS WIRE) - Rambus Inc. (NASDAQ:RMBS) today reported financial results for the three months ended December 31, 1998. First quarter revenues of $10.6 million were up 13% over the same period last year, and 9% over the previous quarter. Operating income for the quarter was $2.4 million, compared to $2.1 million in the same period last year and $1.8 million in the previous quarter. First quarter diluted earnings per share were $0.08 compared to $0.06 in the same period last year and $0.07 in the previous quarter.
The Company cautioned investors to expect earnings in the next two or three quarters to be no better than flat compared to first quarter results. It attributed this caution to an expected seasonal decline in royalties from shipments of Rambus ICs for use in Nintendo 64 video games as well as the discontinuation of development on Rambus-based controllers for PC multimedia applications by Cirrus Logic and Chromatic Research. In addition, the Company said that it would incur additional expenses over the next few quarters to help enable the anticipated ramp of Rambus ICs into the PC main memory market later this year.
Rambus Inc. develops and licenses high-speed chip-to-chip interface technology which enables semiconductor memory devices to keep pace with faster generations of processors and controllers. The Company licenses semiconductor companies to manufacture and sell memory and logic ICs incorporating Rambus interface technology and markets its solution to systems companies to encourage them to design Rambus ICs into their products for use in consumer electronics, personal computers, high-speed communications and other computer system applications.
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 royalties from other customers may be insufficient to offset expected declines in royalty revenues attributable to Nintendo, Cirrus Logic and Chromatic Research and the possibility of a delay in customer programs or production ramps.
Rambus Inc.
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
December 31, September 30, December 31,
1998 1998 1997
Revenues:
Contract revenues $ 7,948 $ 7,394 $ 6,676
Royalties 2,626 2,269 2,714
Total revenues 10,574 9,663 9,390
Costs and expenses:
Cost of contract revenues 2,102 2,549 1,641
Research and development 3,089 2,497 2,806
Marketing, general
& administrative 2,970 2,802 2,823
Total costs and expenses 8,161 7,848 7,270
Operating income 2,413 1,815 2,120
Other income 1,012 1,117 471
Income before income taxes 3,425 2,932 2,591
Provision for income taxes 1,370 1,186 1,036
Net income $ 2,055 $ 1,746 $ 1,555
Net income per share $ 0.09 $ 0.08 $ 0.07
Net income per share-
-assuming dilution $ 0.08 $ 0.07 $ 0.06
Shares used in per share
calculation:
Basic 23,034 22,902 22,467
Assuming dilution 24,874 24,536 24,310
Rambus Inc.
Consolidated Balance Sheets
(in thousands)
December 31, September 30, December 31,
1998 1998 1997
(unaudited) (unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 31,900 $ 25,798 $ 3,803
Marketable securities 54,431 53,913 60,060
Accounts receivable 2,033 1,913 607
Prepaids and other
current assets 10,236 10,169 12,350
-------- -------- --------
Total current assets 98,600 91,793 76,820
Property and equipment, net 3,788 3,989 4,405
Marketable securities,
long term 5,093 8,357 --
Investments 398 1,251 1,415
Other assets 5,576 5,597 1,716
-------- -------- --------
Total assets $113,455 $110,987 $ 84,356
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
other current liabilities $ 3,191 $ 3,428 $ 2,736
Current portion of
capital lease obligations 76 130 326
Current portion of
deferred revenue 27,519 28,617 22,156
Total current liabilities 30,786 32,175 25,218
Capital lease obligations,
less current portion -- -- 76
Deferred revenue, less
current portion 35,845 37,020 27,581
Total liabilities 66,631 69,195 52,875
Stockholders' equity:
Common stock 23 23 22
Additional paid-in capital 70,446 67,617 63,187
Stockholders' notes
receivable -- -- (680)
Accumulated deficit (23,668) (25,723) (30,956)
Cumulative translation
adjustment 23 (125) (92)
Total stockholders'
equity 46,824 41,792 31,481
Total liabilities and
stockholders' equity $ 113,455 $ 110,987 $ 84,356
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