April 10, 2002

Rambus Reports March Quarter Earnings

Earnings Per Share of 7 Cents LOS ALTOS, Calif.--April 10, 2002--

Q1 earnings announcement call live on website (www.rambus.com)

at 2:00 p.m. PST. Conference call replay number 800-468-0319;

replay also available on website. Replay available for one week,

beginning at 4:00 p.m. PST.

Rambus Inc. (Nasdaq:RMBS - news) today reported financial results for its second fiscal quarter ended March 31, 2002. Net income for the March quarter was $6.7 million (29% of revenues), compared to $6.2 million in the previous quarter and $8.0 million in the same period last year. Revenue for the quarter was $23.5 million, down 25% over the same period last year and down 5% from the previous quarter.

March quarter results include $21.8 million in royalties, essentially flat with the previous quarter. RDRAM memory and controller royalties were up 23% sequentially. Royalties from other memory and controllers declined sequentially by about 9%.

Operating expenses in the March quarter declined $2.5 million from last quarter as a result of a significant reduction in litigation costs. Costs associated with litigation were down to $1.6 million in the March quarter versus $4.5 million in the prior quarter. Overall, operating expenses were $14.8 million versus $17.3 million last quarter and $20.4 million in the same period last year.

Rambus Inc. designs, develops and licenses high bandwidth chip-connection technology and provides the comprehensive engineering support necessary for a complete system solution. Rambus' technology and intellectual property are licensed to leading semiconductor suppliers including DRAM, controller and microprocessor manufacturers, ASIC developers, and foundries for use in computer, consumer and networking systems such as personal computers, workstations, servers, game consoles, set top boxes, digital HDTVs, printers, high-speed switches and routers.

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 31, Dec. 31, March 31, March 31, March 31, 2002 2001 2001 2002 2001

Revenues: Contract revenues $ 1,722 $ 3,084 $ 7,581 $ 4,806 $15,450 Royalties 21,809 21,780 23,665 43,589 50,513 -------- -------- -------- -------- -------- Total revenues 23,531 24,864 31,246 48,395 65,963 -------- -------- -------- -------- -------- Costs and expenses: Cost of contract revenues 1,842 2,158 3,057 4,000 5,277 Research and development 5,226 5,120 4,758 10,346 8,346 Marketing, general & administrative 6,121 5,515 5,295 11,636 10,263 Litigation expense 1,629 4,509 7,290 6,138 11,569 -------- -------- -------- -------- -------- Total costs and expenses 14,818 17,302 20,400 32,120 35,455 -------- -------- -------- -------- -------- Operating income 8,713 7,562 10,846 16,275 30,508 Other income 1,669 1,937 2,557 3,606 4,628 -------- -------- -------- -------- -------- Income before income taxes 10,382 9,499 13,403 19,881 35,136 Provision for income taxes 3,634 3,325 5,361 6,959 14,054 -------- -------- -------- -------- -------- Net income $ 6,748 $ 6,174 $ 8,042 $12,922 $21,082 ======== ======== ======== ======== ======== Net income per share - basic $ 0.07 $ 0.06 $ 0.08 $ 0.13 $ 0.21 ======== ======== ======== ======== ======== Net income per share - diluted $ 0.07 $ 0.06 $ 0.07 $ 0.12 $ 0.20 ======== ======== ======== ======== ======== Shares used in per share calculations: Basic 99,948 100,336 99,087 100,180 98,816 Diluted 102,945 104,016 107,588 103,596 108,084



RAMBUS INC. CONSOLIDATED BALANCE SHEETS (in thousands)

March 31, Dec. 31, Sept. 30, 2002 2001 2001 (unaudited) (unaudited)

ASSETS Current assets: Cash and cash equivalents $ 34,344 $ 29,465 $ 44,195 Marketable securities 64,464 80,523 85,700 Accounts receivable 1,937 275 2,368 Prepaid and deferred taxes 10,138 8,970 7,665 Prepaids and other current assets 3,074 3,322 3,319 --------- --------- --------- Total current assets 113,957 122,555 143,247 Property and equipment, net 14,050 15,191 15,862 Marketable securities, long-term 50,723 36,868 12,057 Restricted investments 12,253 12,009 13,605 Deferred taxes, long-term 37,270 39,922 44,275 Other assets 8,566 8,747 8,744 --------- --------- --------- Total assets $ 236,819 $ 235,292 $ 237,790 ========= ========= ========= Total cash, cash equivalents, marketable securities and restricted investments $ 161,784 $ 158,865 $ 155,557

LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and other current liabilities $ 8,521 $ 7,111 $ 7,977 Deferred revenue 12,150 11,319 14,398 Total current liabilities 20,671 18,430 22,375 Deferred revenue, less current portion 19,187 22,406 24,058 --------- --------- --------- Total liabilities 39,858 40,836 46,433 --------- --------- --------- Stockholders' equity: Common Stock 100 100 100 Additional paid-in capital 275,984 280,062 282,911 Deferred stock-based compensation -- (433) (461) Accumulated deficit (78,939) (85,687) (91,861) Accumulated other comprehensive gain (loss) (184) 414 668 Total stockholders' equity 196,961 194,456 191,357 --------- --------- --------- Total liabilities and stockholders' equity $ 236,819 $ 235,292 $ 237,790 ========= ========= =========


Contact:
Rambus Inc.
Bob Eulau, 650/947-5000
Sr. Vice President, Finance & CFO
or
Susan Berry, 650/947-5050
Rambus Investor Relations


Close window | Back to top

Copyright 2014 Rambus Inc.