July 11, 2002

Rambus Reports June Quarter Earnings; Earnings Per Share of 6 Cents

LOS ALTOS, Calif., Jul 11, 2002 -- Rambus Inc. (Nasdaq:RMBS)

Fiscal Q3 earnings announcement call live on website (www.rambus.com) at 2:00 p.m. PDT.

Conference call replay number 800/293-4252; replay also available on website.

Replay available for one week, beginning at 5:00 p.m. PDT.

Rambus Inc. (Nasdaq:RMBS) today reported financial results for its third fiscal quarter ended June 30, 2002. Earnings per share for the June quarter were 6 cents, compared to 4 cents in the same period last year and 7 cents in the previous quarter. Net income for the June quarter was $5.9 million (25% of revenues), compared to $3.7 million in the same period last year and $6.7 million in the previous quarter. Revenue for the quarter was $23.7 million, up 2% over the same period last year and up 1% from the previous quarter.

June quarter results include $22.2 million in royalties, up 12% over the same period last year and up 2% from the previous quarter. Royalties were down sequentially for RDRAM memory and memory controllers. Royalties were up sequentially for SDRAM and DDR memories and memory controllers.

Operating expenses in the June quarter increased $1.2 million from last quarter as a result of an increase in litigation costs and R&D investments. Costs associated with litigation were up to $2.4 million in the June quarter versus $1.6 million in the prior quarter. Litigation costs were down $6.4 million when compared to the same quarter last year. Overall, operating expenses were $16.0 million versus $14.8 million last quarter and $21.4 million in the same period last year.

"Rambus' business has always been based on innovation and we've shown good progress on this front over the past quarter," said Geoff Tate, CEO of Rambus Inc. "Our diversification strategy is working as evidenced by our successful demonstrations of our RaSer and Yellowstone technologies while our RDRAM partners began shipping the world's first gigahertz memory device."

Rambus is the leading developer and marketer of breakthrough chip-to-chip interface technology, products and solutions to the electronics industry. The company licenses its technology in the form of ASIC cells that are incorporated into high-performance memory and logic chips by 25 of the world's top semiconductor makers. The company's ASIC cells and system-level solutions are incorporated into hundreds of EOM products such as personal computers, workstations, video game consoles, network routers, HDTVs and set-top boxes.

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 Nine Months Ended ------------------------------ ------------------- June 30, March 31, June 30, June 30, June 30, 2002 2002 2001 2002 2001 -------- -------- -------- -------- -------- Revenues: Contract revenues $ 1,507 $ 1,722 $ 3,514 $ 6,313 $ 18,964 Royalties 22,183 21,809 19,787 65,772 70,300 -------- -------- -------- -------- -------- Total revenues 23,690 23,531 23,301 72,085 89,264 -------- -------- -------- -------- -------- Costs and expenses: Cost of contract revenues 1,786 1,842 2,692 5,786 7,969 Research and development 5,844 5,226 4,822 16,190 13,168 Marketing, general & administrative 6,050 6,121 5,131 17,686 15,394 Litigation expense 2,361 1,629 8,762 8,499 20,331 -------- -------- -------- -------- -------- Total costs and expenses 16,041 14,818 21,407 48,161 56,862 -------- -------- -------- -------- -------- Operating income 7,649 8,713 1,894 23,924 32,402 Interest and other income, net 1,423 1,669 2,317 5,029 6,945 -------- -------- -------- -------- -------- Income before income taxes 9,072 10,382 4,211 28,953 39,347 Provision for income taxes 3,175 3,634 504 10,134 14,558 -------- -------- -------- -------- -------- Net income $ 5,897 $ 6,748 $ 3,707 $ 18,819 $ 24,789 ======== ======== ======== ======== ======== Net income per share - basic $ 0.06 $ 0.07 $ 0.04 $ 0.19 $ 0.25 ======== ======== ======== ======== ======== Net income per share - diluted $ 0.06 $ 0.07 $ 0.04 $ 0.18 $ 0.23 ======== ======== ======== ======== ======== Shares used in per share calculations: Basic 99,511 99,948 99,969 99,947 99,200 Diluted 101,761 102,945 102,889 102,989 107,214



RAMBUS INC. CONSOLIDATED BALANCE SHEETS (in thousands)

June 30, March 31, Sept. 30, 2002 2002 2001 --------- --------- --------- (unaudited) (unaudited) ASSETS Current assets: Cash and cash equivalents $ 30,982 $ 34,344 $ 44,195 Marketable securities 65,708 64,464 85,700 Accounts receivable 197 1,937 2,368 Prepaid and deferred taxes 7,850 10,138 7,665 Prepaids and other current assets 4,290 3,074 3,319 --------- --------- --------- Total current assets 109,027 113,957 143,247 Property and equipment, net 13,456 14,050 15,862 Marketable securities, long-term 54,000 50,723 12,057 Restricted investments 12,577 12,253 13,605 Deferred taxes, long-term 37,637 37,270 44,275 Other assets 6,154 8,566 8,744 --------- --------- --------- Total assets $ 232,851 $ 236,819 $ 237,790 ========= ========= ========= Total cash, cash equivalents, marketable securities and restricted investments $ 163,267 $ 161,784 $ 155,557

LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and other current liabilities $ 7,773 $ 8,521 $ 7,977 Deferred revenue 11,146 12,150 14,398 --------- --------- --------- Total current liabilities 18,919 20,671 22,375 Deferred revenue, less current portion 17,124 19,187 24,058 --------- --------- --------- Total liabilities 36,043 39,858 46,433 Stockholders' equity: Common Stock 99 100 100 Additional paid-in capital 269,339 275,984 282,911 Deferred stock-based compensation -- -- (461) Accumulated deficit (73,042) (78,939) (91,861) Accumulated other comprehensive gain (loss) 412 (184) 668 --------- --------- --------- Total stockholders' equity 196,808 196,961 191,357 --------- --------- --------- Total liabilities and stockholders' equity $ 232,851 $ 236,819 $ 237,790 ========= ========= =========




Rambus Inc.

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


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