- Delivered strong Q4 revenue and earnings in line with guidance
- Produced record annual product revenue driven by memory interface chips, up 58% year over year
- Generated record cash from operations of $230.4 million for full year 2022
SAN JOSE, Calif. — (BUSINESS WIRE) — February 6, 2023 — Rambus Inc. (NASDAQ: RMBS), a provider of industry-leading chips and IP making data faster and safer, today reported financial results for the fourth quarter ended December 31, 2022. GAAP revenue for the fourth quarter was $122.4 million; licensing billings were $64.3 million, product revenue was $67.2 million, and contract and other revenue was $23.8 million. The Company also generated $51.3 million in cash provided by operating activities in the fourth quarter.
“Rambus delivered a tremendous performance in 2022, achieving record annual product revenue and cash from operations,” said Luc Seraphin, chief executive officer of Rambus. “Our strategic focus on the data center and strong execution across our diverse offerings continues to drive the company’s long-term profitable growth and enables consistent capital returns to our stockholders.”
Quarterly Financial Review - GAAP |
Three Months Ended December 31, |
||||||
(In millions, except for percentages and per share amounts) |
|
2022 |
|
|
|
2021 |
|
Revenue |
|
|
|
||||
Product revenue |
$ |
67.2 |
|
|
$ |
45.3 |
|
Royalties |
|
31.4 |
|
|
|
32.9 |
|
Contract and other revenue |
|
23.8 |
|
|
|
13.6 |
|
Total revenue |
$ |
122.4 |
|
|
$ |
91.8 |
|
Cost of product revenue |
$ |
28.2 |
|
|
$ |
13.4 |
|
Cost of contract and other revenue |
$ |
1.6 |
|
|
$ |
0.7 |
|
Amortization of acquired intangible assets (included in total cost of revenue) |
$ |
3.6 |
|
|
$ |
3.6 |
|
| Total operating expenses (1) |
$ |
72.8 |
|
|
$ |
65.1 |
|
| Operating income |
$ |
16.2 |
|
|
$ |
9.0 |
|
| Operating margin |
|
13 |
% |
|
|
10 |
% |
| Net income |
$ |
15.9 |
|
|
$ |
6.1 |
|
| Diluted net income per share |
$ |
0.14 |
|
|
$ |
0.05 |
|
|
|
|
|
|
||||
| Net cash provided by operating activities |
$ |
51.3 |
|
|
$ |
72.2 |
|
| ____________________________ | ||
| (1) |
Includes amortization of acquired intangible assets of approximately $0.4 million for both the three months ended December 31, 2022 and 2021. |
|
| Quarterly Financial Review - Supplemental Information (1) |
Three Months Ended December 31, |
||||||
| (In millions) |
|
2022 |
|
|
|
2021 |
|
| Licensing billings (operational metric) (2) |
$ |
64.3 |
|
|
$ |
66.6 |
|
| Product revenue (GAAP) |
$ |
67.2 |
|
|
$ |
45.3 |
|
| Contract and other revenue (GAAP) |
$ |
23.8 |
|
|
$ |
13.6 |
|
| Non-GAAP cost of product revenue |
$ |
28.1 |
|
|
$ |
13.3 |
|
| Cost of contract and other revenue (GAAP) |
$ |
1.6 |
|
|
$ |
0.7 |
|
| Non-GAAP total operating expenses |
$ |
55.8 |
|
|
$ |
51.4 |
|
| Non-GAAP interest and other income (expense), net |
$ |
(0.7 |
) |
|
$ |
(1.1 |
) |
| Diluted share count (GAAP) |
|
111 |
|
|
|
115 |
|
| ____________________________ | ||
| (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. |
|
