Rambus Reports Third Quarter 2019 Financial Results

  • Great quarter, exceeding expectations; GAAP revenue of $57.4 million; licensing billings of $63.1 million, product revenue of $21.4 million, and contract and other revenue of $16.6 million
  • $25.6 million in cash provided by operating activities
  • Refocused business on semiconductor with completed sale of payments and ticketing business to Visa
  • Expanded silicon IP offerings with acquisition of digital controller IP provider, Northwest Logic, and agreement to acquire silicon IP and secure protocols businesses from Verimatrix
  • Second consecutive quarter of record revenue for memory interface chip business

SUNNYVALE, Calif. — (BUSINESS WIRE) — November 4, 2019 — Rambus Inc. (NASDAQ: RMBS) today reported financial results for the third quarter ended September 30, 2019. Total revenue for the third quarter was above expectations at $57.4 million; licensing billings were $63.1 million, product revenue was $21.4 million, and contract and other revenue was $16.6 million. The Company also generated $25.6 million in cash provided by operating activities in the third quarter of 2019. The Company has generated $93.1 million in cash provided by operating activities through the nine months ended September 30, 2019, greater than what was generated during the full fiscal year of 2018.

“Rambus delivered a great third quarter. We made tremendous progress toward the strategic objectives critical to our future and successfully realigned the Company around our core strengths in semiconductor,” said Luc Seraphin, chief executive officer of Rambus. “With record revenue from our memory interface chip business and continued silicon IP design wins at tier-one SoC customers, we exceeded our commitments to the market.”

Business Review

Consistent with the Company’s areas of focus and mission to deliver data faster and safer, Rambus completed a number of significant M&A activities over the course of the third quarter. The Company closed the sale of its payments and ticketing business to Visa, redefining its perimeter in the semiconductor market. Rambus also announced two silicon IP acquisitions to enhance its offerings and amplify its market position in interfaces and security for data center, artificial intelligence (AI), automotive and government. The first was the completed acquisition of digital controller company, Northwest Logic, and the second was an agreement to acquire the secure silicon IP and protocols businesses of Verimatrix, formerly Inside Secure, which we expect to close by the end of the year.

Rambus continued to drive sustained silicon IP revenue growth with key design wins for both its interface and security IP solutions. The Company closed four tier-1 SoC design wins across the portfolio for data center, edge, IoT and government and announced a combined interface and security IP win at SEAKR for aerospace and satellite communications. The team expanded its portfolio with leading-edge interface solutions for GDDR6, HBM2 and 112G to deliver the critical building blocks for AI, data center, 5G and automotive. And finally, Rambus announced the industry’s fastest complete memory subsystem solution for GDDR6, including the PHY and controller, capable of running at 18 Gbps to meet the demands of performance-intensive applications.

Finally, the Company’s memory interface chip business achieved a second consecutive quarter of record revenue and is on track to almost double year over year. This is driven by increased OEM and data center qualifications, leading to steady gains in DDR4 memory interface chip market share. The Company also remains well positioned as a first mover for the industry transition to DDR5.

Quarterly Financial Review - GAAP

Three Months Ended
September 30,

(In millions, except for percentages and per share amounts)

2019

 

2018

Revenue

 

 

 

Royalties

$

19.4

 

 

$

33.6

 

Product revenue

21.4

 

 

11.8

 

Contract and other revenue

16.6

 

 

14.4

 

Total revenue

$

57.4

 

 

$

59.8

 

Total operating costs and expenses

$

80.3

 

 

$

78.9

 

Operating loss

$

(22.9

)

 

$

(19.1

)

Operating margin

(40

)%

 

(32

)%

Net loss

$

(17.3

)

 

$

(104.9

)

Diluted net loss per share

$

(0.16

)

 

$

(0.97

)

 

 

 

 

Net cash provided by operating activities

$

25.6

 

 

$

31.6

 

Quarterly Financial Review - Non-GAAP (including operational metric) (1)

Three Months Ended
September 30,

(In millions)

2019

 

2018

Licensing billings (2)

$

63.1

 

 

$

75.4

 

Product revenue

$

21.4

 

 

$

11.8

 

Contract and other revenue

$

16.6

 

 

$

14.4

 

Total operating costs and expenses

$

67.1

 

 

$

67.6

 

Interest and other income (expense), net

$

6.0

 

 

$

6.2

 

Diluted share count

114

 

 

110

 

(1)

 

See “Supplemental Reconciliation of GAAP to Non-GAAP Results” and “Reconciliation of Other GAAP to Non-GAAP Items” tables included below. Note that the applicable non-GAAP measures are presented and that revenue is solely presented on a GAAP basis.

(2)

Licensing billings is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences.


1 | 2 | 3 | 4  Next Page »



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise