LOS ALTOS, Calif.--(BUSINESS WIRE)--Oct. 14, 2004--Rambus Inc.
(Nasdaq:
RMBS -
News), a leading developer of chip interface products and
services, today reported financial results for the third quarter of
2004. Earnings per share for the quarter were 10 cents, compared to 5
cents in the third quarter last year and 8 cents in the previous
quarter. Approximately 3 cents of the earnings per share for the third
quarter was attributable to an anticipated lower effective tax rate
for the year which resulted primarily from increased credits on
foreign taxes withheld. Net income for the third quarter was $10.4
million (27% of revenue), compared to $5.0 million in the third
quarter last year and $8.3 million in the previous quarter.
Approximately $2.7 million of the net income for the third quarter was
attributable to the previously mentioned foreign tax credit
utilization. Revenue for the third quarter was $38.8 million, up 36%
over the third quarter last year and up 11% from the previous quarter.
"Our revenue growth of 36% demonstrates the excellent progress our
team is making on multiple fronts," said Geoff Tate, chief executive
officer at Rambus. "Our contract revenue doubled over a year ago
primarily as a result of our best ever quarter in our serial link
business as well as significant development work in our XDR and
Redwood customer programs."
Third quarter results reflected $8.3 million in contract revenues,
up 107% over the third quarter last year and up 55% from the previous
quarter. This increase in contract revenues over the third quarter
last year primarily reflects revenues from contracts signed in 2003
for our XDR memory interface and Redwood interface technologies and a
serial link contract. Third quarter results include $30.5 million in
royalties, up 24% over the third quarter last year and up 3% from the
previous quarter.
Total costs and expenses were $28.1 million compared with $22.2
million in the third quarter last year and $24.4 million last quarter.
This 15% sequential increase in costs and expenses was primarily
attributable to a $1.9 million increase in litigation expense and a
$1.3 million increase in marketing, general and administrative
expenses.
Cash, cash equivalents and marketable securities decreased $13
million to $219 million since June 30, 2004. This decrease resulted
primarily from $11.1 million in cash paid to Cadence Design Systems
for the purchase of certain serial link patents and cells, $7.6
million used for the repurchase of Rambus common stock and $6.5
million invested in property and equipment. These uses of cash were
partially offset by operating cash flow of $10.3 million.
The earnings announcement call will be broadcast live on our
website (www.rambus.com) at 2:00 p.m. PDT today. Please log-on early
if you do not already have the necessary software to listen to the
call.
The conference call replay number is 800-642-1687 and the ID
number is 1133935. For international callers, the number is
706-645-9291. The replay will be available on our website beginning at
5:00 p.m. PDT today.
About Rambus
Rambus is one of the world's leading providers of advanced
chip-to-chip interface products and services. Since its founding in
1990, the Company's innovations, breakthrough technologies and
integration expertise have helped industry-leading chip and system
companies solve their most challenging and complex I/O problems and
bring their products to market. Rambus's interface solutions can be
found in numerous computing, consumer, and communications products and
applications. Rambus is headquartered in Los Altos, California, with
regional offices in North Carolina, Taiwan and Japan. Additional
information is available at www.rambus.com.
This release contains forward-looking statements under the Private
Securities Litigation Reform Act of 1995, including our CEO's
statements contained herein regarding our progress on multiple fronts
and the significance of our ongoing development work. 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 uncertainty of
realizing significant benefits from our serial link business or our
investment in developing new and improving our existing products and
services. Our business generally is subject to a number of risks which
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
-------------------------- -----------------
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2004 2004 2003 2004 2003
-------- -------- -------- -------- --------
Revenues:
Contract revenues $8,276 $5,349 $4,005 $18,704 $11,015
Royalties 30,483 29,616 24,555 87,561 74,819
-------- -------- -------- -------- --------
Total revenues 38,759 34,965 28,560 106,265 85,834
-------- -------- -------- -------- --------
Costs and expenses:
Cost of contract
revenues 5,328 4,957 4,247 15,519 10,805
Research and
development 8,056 7,929 7,565 23,412 22,968
Marketing, general &
administrative 8,065 6,724 5,711 21,819 17,771
Litigation expense 6,662 4,747 4,650 15,587 18,095
-------- -------- -------- -------- --------
Total costs and
expenses 28,111 24,357 22,173 76,337 69,639
-------- -------- -------- -------- --------
Operating income 10,648 10,608 6,387 29,928 16,195
Interest and other
income, net 1,149 2,199 976 7,452 5,281
-------- -------- -------- -------- --------
Income before income
taxes 11,797 12,807 7,363 37,380 21,476
Provision for income
taxes 1,410 4,483 2,356 10,364 6,872
-------- -------- -------- -------- --------
Net income $10,387 $8,324 $5,007 $27,016 $14,604
======== ======== ======== ======== ========
Net income per share -
basic $0.10 $0.08 $0.05 $0.27 $0.15
======== ======== ======== ======== ========
Net income per share -
diluted $0.10 $0.08 $0.05 $0.24 $0.14
======== ======== ======== ======== ========
Shares used in per
share calculations:
Basic 101,875 102,500 97,498 101,781 97,361
Diluted 107,573 109,850 106,001 110,441 105,044
RAMBUS INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
Sept. 30, June 30, Dec. 31,
2004 2004 2003
---------- --------- ---------
ASSETS
Current assets:
Cash and cash equivalents $28,443 $42,967 $42,005
Marketable securities 88,507 43,042 24,777
Accounts receivable 1,742 454 10,263
Prepaid and deferred taxes 12,310 12,370 12,890
Prepaids and other current
assets 4,487 6,861 5,652
---------- --------- ---------
Total current assets 135,489 105,694 95,587
---------- --------- ---------
Property and equipment, net 17,892 13,121 10,965
Marketable securities, long-term 102,123 145,705 121,756
Restricted investments 4,816 5,081 4,576
Deferred taxes, long-term 69,198 60,462 43,557
Purchased intangible assets, net 22,672 12,522 13,184
Other assets 1,171 1,179 3,461
---------- --------- ---------
Total assets $353,361 $343,764 $293,086
========== ========= =========
Total cash, cash equivalents and
marketable securities $219,073 $231,714 $188,538
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other
current liabilities $15,793 $13,251 $10,804
Deferred revenue 24,485 23,320 24,180
---------- --------- ---------
Total current
liabilities 40,278 36,571 34,984
Deferred revenue, less current
portion 5,453 11,134 18,022
---------- --------- ---------
Total liabilities 45,731 47,705 53,006
---------- --------- ---------
Stockholders' equity:
Common Stock 102 102 99
Additional paid-in capital 319,720 319,012 278,187
Accumulated other
comprehensive gain (800) (1,277) 201
Accumulated deficit (11,392) (21,778) (38,407)
---------- --------- ---------
Total stockholders'
equity 307,630 296,059 240,080
---------- --------- ---------
Total liabilities and
stockholders' equity $353,361 $343,764 $293,086
========== ========= =========