- Delivered strong Q3 results with revenue and earnings above the midpoint of guidance
- Generated $51.6 million in cash from operations and completed $100.0 million accelerated share repurchase program
- Completed the sale of the PHY IP business, strengthening focus on chips and digital IP
- Produced quarterly product revenue of $52.2 million driven by memory interface chips
SAN JOSE, Calif. — (BUSINESS WIRE) — October 30, 2023 — Rambus Inc. (NASDAQ: RMBS), a provider of industry-leading chips and IP making data faster and safer, today reported financial results for the third quarter ended September 30, 2023. GAAP revenue for the third quarter was $105.3 million, licensing billings were $57.9 million, product revenue was $52.2 million, and contract and other revenue was $24.2 million. The Company also generated $51.6 million in cash provided by operating activities in the third quarter.
“Rambus delivered a strong third quarter, as we continue to execute on our strategy, drive the company's long-term profitable growth and consistently return value to our stockholders amidst challenging market conditions,” said Luc Seraphin, chief executive officer of Rambus. “We are well positioned to address the increasing memory performance requirements in the data center fueled by AI and other advanced workloads."
Quarterly Financial Review - GAAP |
Three Months Ended September 30, |
||||||
(In millions, except for percentages and per share amounts) |
2023 |
|
2022 |
||||
Revenue |
|
|
|
||||
Product revenue |
$ |
52.2 |
|
|
$ |
58.6 |
|
Royalties |
|
28.9 |
|
|
|
29.9 |
|
Contract and other revenue |
|
24.2 |
|
|
|
23.7 |
|
Total revenue |
|
105.3 |
|
|
|
112.2 |
|
Cost of product revenue |
|
19.4 |
|
|
|
21.9 |
|
Cost of contract and other revenue |
|
1.3 |
|
|
|
1.5 |
|
Amortization of acquired intangible assets (included in total cost of revenue) |
|
3.3 |
|
|
|
3.6 |
|
Total operating expenses (benefits) (1) |
|
(23.6 |
) |
|
|
68.3 |
|
| Operating income |
$ |
104.9 |
|
|
$ |
16.9 |
|
| Operating margin |
|
100 |
% |
|
|
15 |
% |
| Net income |
$ |
103.2 |
|
|
$ |
0.9 |
|
| Diluted net income per share |
$ |
0.93 |
|
|
$ |
0.01 |
|
| Net cash provided by operating activities |
$ |
51.6 |
|
|
$ |
80.0 |
|
| _________________________________________ |
||
| (1) |
Includes amortization of acquired intangible assets of approximately $0.3 million and $0.4 million for the three months ended September 30, 2023 and 2022, respectively. |
|
| Quarterly Financial Review - Supplemental Information (1) |
Three Months Ended September 30, |
||||||
| (In millions) |
2023 |
|
2022 |
||||
| Licensing billings (operational metric) (2) |
$ |
57.9 |
|
$ |
62.2 |
||
| Product revenue (GAAP) |
$ |
52.2 |
|
|
$ |
58.6 |
|
| Contract and other revenue (GAAP) |
$ |
24.2 |
|
|
$ |
23.7 |
|
| Non-GAAP cost of product revenue |
$ |
19.2 |
|
|
$ |
21.8 |
|
| Cost of contract and other revenue (GAAP) |
$ |
1.3 |
|
|
$ |
1.5 |
|
| Non-GAAP total operating expenses |
$ |
52.4 |
|
|
$ |
54.6 |
|
| Non-GAAP interest and other income (expense), net |
$ |
1.9 |
|
|
$ |
1.6 |
|
| Diluted share count (GAAP) |
|
111 |
|
|
|
112 |
|
| _________________________________________ |
||
| (1) |
See “Supplemental Reconciliation of GAAP to Non-GAAP Results” table included below. |
|
| (2) |
Licensing billings is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences relating to advanced payments for variable licensing agreements. |
|
