Rambus Reports Strong Fourth Fiscal Quarter Earnings
LOS ALTOS, Calif.--(BUSINESS WIRE)--Oct. 16, 2001--
Q4 earnings announcement call live on website (www.rambus.com) at 1:30 p.m. PDT. Conference call replay number 800-839-9318; replay also available on website. Replay available for one week, beginning at 4:00 p.m. PDT.
Rambus Inc. (Nasdaq:RMBS) today reported financial results for its fourth fiscal quarter ended and year-ended September 30, 2001. Pro forma earnings per share for the fourth fiscal quarter were 6 cents versus a consensus analysts' estimate of 4 cents. Pro forma earnings per share for the fiscal year were 30 cents versus 20 cents in the prior year. Revenue for the quarter was $27.9 million, up 4% over the same period last year and up 20% from the previous quarter. Revenue for the year-ended September 30, 2001 was $117.2 million, up 62% from the prior year.
In addition, the Rambus Inc. Board of Directors has authorized the repurchase of up to 5 million shares of the Company's common stock in open market transactions effective immediately and over an indefinite period.
Fourth fiscal quarter results include $25.1 million in royalties, up 27% from the previous quarter. This reflects strong growth in royalties associated with memory controllers partially offset by a decline in royalties associated with memory devices. Memory device royalties continue to be driven by the dramatic price drops in the industry.
Excluding acquisition-related costs, pro forma net income for the fourth fiscal quarter was $6.6 million (24% of revenues), compared to $10.2 million (38% of revenues) in the same period last year and $3.9 million (17% of revenues) in the previous quarter. Pro forma net income for the year was $31.8 million (27% of revenues) compared to $21.5 million (30% of revenues).
Operating expenses in the September 2001 quarter declined $1.8 million from last quarter. The decline was driven by a significant reduction in litigation costs. Costs associated with litigation were down to $6.8 million in the fourth fiscal quarter versus $8.8 million in the prior quarter. Operational expense controls offset previously planned increases in marketing expense. Overall, operating expenses were $19.4 million versus $21.2 million last quarter and $12.4 million in the same period last year, on a pro-forma basis.
``We are pleased to have strong profitability in this difficult business environment. These profits are the result of our innovations and our business model,'' said Geoff Tate, CEO of Rambus Inc. ``We are looking forward to outlining our newest inventions at the Rambus Developers Forum on Monday.'' There will be a webcast of the analyst portion of the Rambus Developers Forum available through www.rambus.com.
Rambus Inc. designs, develops and licenses high bandwidth chip-connection technology and provides the comprehensive engineering support necessary for a complete system solution. Rambus' technology and intellectual property are licensed to leading semiconductor suppliers including DRAM, controller and microprocessor manufacturers, ASIC developers, and foundries for use in computer, consumer and networking systems such as personal computers, workstations, servers, game consoles, set top boxes, digital HDTVs, printers, high-speed switches and routers.
This release and the conference call on today's date contain forward-looking statements regarding the Company's financial prospects, development plans, anticipated product shipment dates, relations with licensees and other third parties and various other matters. Actual results may differ materially. Among the reasons which could cause actual results to differ materially is the possibility of inadequate shipments of Rambus DRAMs and controllers for the Sony PlayStation2 and the PC main memory market, the continued deterioration in the DRAM market, the market response to these products, 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 greater-than-expected response of the market to competing technology, a lack of progress on price and cost reduction by RDRAM suppliers, a lack of progress on signing new contracts for both RDRAM-compatible and SDRAM-compatible ICs, adverse litigation decisions and other factors which are available in our SEC filings including our 10-K and 10-Qs.
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RAMBUS INC.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Year Ended
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2001 2001 2000 2001 2000
Revenues:
Contract
revenues 2,833 $ 3,514 $ 6,987 $ 21,797 $ 39,683
Royalties 25,063 19,787 19,921 95,363 32,628
------- -------- -------- -------- --------
Total
revenues 27,896 23,301 26,908 117,160 72,311
------- -------- -------- -------- --------
Costs and
expenses:
Cost of
contract
revenues 1,894 2,692 2,666 9,863 12,093
Research and
development 4,814 4,601 3,299 17,319 10,699
Marketing,
general &
administrative 5,846 5,131 5,011 21,238 17,344
Litigation
expense 6,808 8,762 1,461 27,140 3,796
------- -------- -------- -------- --------
Total costs
and expenses 19,362 21,186 12,437 75,560 43,932
------- -------- -------- -------- --------
Operating
income 8,534 2,115 14,471 41,600 28,379
Other income 1,986 2,317 1,254 8,931 4,714
------- -------- -------- -------- --------
Pro forma
income before
income taxes 10,520 4,432 15,725 50,531 33,093
Provision
for income
taxes 3,893 572 5,504 18,696 11,583
------- -------- -------- -------- --------
Pro forma
net income 6,627 $ 3,860 $ 10,221 $ 31,835 $ 21,510
======= ======== ======== ======== ========
Pro forma net
income per
share - basic 0.07 $ 0.04 $ 0.10 $ 0.32 $ 0.22
======= ======== ======== ======== ========
Pro forma net
income per
share
- diluted 0.06 $ 0.04 $ 0.09 $ 0.30 $ 0.20
======= ======== ======== ======== ========
Shares used
in per share
calculation:
Basic 100,190 99,969 98,001 99,456 96,487
Diluted 103,001 102,889 110,049 107,277 107,775
Notes:
1. Pro forma income shown above excludes the effect of amortization
of goodwill and other acquisition-related intangibles of $221K in
the three months ended 9/30/01, $221K in the three months ended
6/30/01, $221K in the three months ended 9/30/00, $885K in the
year ended 9/30/01 and $802K in the year ended 9/30/00, one-time
employee compensation expenses of $171 million in the year ended
9/30/00; and one-time tax adjustment of $38 million in the three
months and year ended 9/30/00.
2. This pro forma information is not prepared in accordance with
generally accepted accounting principles.
3. A reconciliation from pro forma net income to the reported results
is shown on the next table.
RAMBUS INC.
RECONCILIATION OF PRO FORMA NET INCOME TO REPORTED RESULTS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Year Ended
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2001 2001 2000 2001 2000
Pro forma
net income $ 6,627 $ 3,860 $ 10,221 $ 31,835 $ 21,510
Acquisition
-related
expenses (221) (221) (221) (885) (802)
Employee
compensation
expense -- -- -- -- (171,085)
Tax benefit 75 68 77 320 702
Tax adjustment -- -- 43,548 -- 43,548
-------- -------- --------- --------- ---------
Net income
(loss) $ 6,481 $ 3,707 $ 53,625 $ 31,270 $(106,127)
======== ======== ========= ========= =========
Pro forma
net income
per share
- basic $ 0.07 $ 0.04 $ 0.10 $ 0.32 $ 0.22
Acquisition
-related
expenses (0.01) (0.00) (0.00) (0.01) (0.00)
Employee
compensation
expense -- -- -- -- (1.77)
Tax adjustment -- -- 0.45 -- 0.45
-------- -------- --------- --------- ---------
Net income
(loss)
per share
- basic $ 0.06 $ 0.04 $ 0.55 $ 0.31 $ (1.10)
======== ======== ========= ========= =========
Pro forma
net income
per share
- diluted $ 0.06 $ 0.04 $ 0.09 $ 0.30 $ 0.20
Acquisition
-related
expenses (0.00) (0.00) (0.00) (0.01) (0.00)
Employee
compensation
expense -- -- -- -- (1.59)
Tax adjustment -- -- 0.40 -- 0.40
Difference
in share
count* -- -- -- -- (0.11)
-------- -------- --------- --------- ---------
Net income
(loss)
per share
- diluted $ 0.06 $ 0.04 $ 0.49 $ 0.29 $ (1.10)
======== ======== ========= ========= =========
* Difference in share count results from the inclusion of equivalent
shares representing outstanding stock options and warrants in
periods with profits and exclusion of such equivalent shares in
periods with losses.
RAMBUS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Year Ended
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
2001 2001 2000 2001 2000
(unaudited)(unaudited)(unaudited)
Revenues:
Contract
revenues $ 2,833 $ 3,514 $ 6,987 $ 21,797 $ 39,683
Royalties 25,063 19,787 19,921 95,363 32,628
-------- --------- --------- -------- ---------
Total
revenues 27,896 23,301 26,908 117,160 72,311
-------- --------- --------- -------- ---------
Costs and
expenses:
Cost of
contract
revenues 1,894 2,692 2,666 9,863 12,093
Research
and
development 5,035 4,822 3,520 18,204 11,501
Marketing,
general &
administrative 12,654 13,893 6,472 48,378 21,140
Employee
compensation
expense -- -- -- -- 171,085
-------- --------- --------- -------- ---------
Total costs
and expenses 19,583 21,407 12,658 76,445 215,819
-------- --------- --------- -------- ---------
Operating
income
(loss) 8,313 1,894 14,250 40,715 (143,508)
Other
income 1,986 2,317 1,254 8,931 4,714
-------- --------- --------- -------- ---------
Income (loss)
before
income taxes 10,299 4,211 15,504 49,646 (138,794)
Provision
for income
taxes
(benefit) 3,818 504 (38,121) 18,376 (32,667)
-------- --------- --------- -------- ---------
Net income
(loss) $ 6,481 $ 3,707 $ 53,625 $ 31,270 $(106,127)
======== ========= ========= ======== =========
Net income
(loss)
per share
- basic $ 0.06 $ 0.04 $ 0.55 $ 0.31 $ (1.10)
======== ========= ========= ======== =========
Net income
(loss)
per share
- diluted $ 0.06 $ 0.04 $ 0.49 $ 0.29 $ (1.10)
======== ========= ========= ======== =========
Shares used
in per share
calculation:
Basic 100,190 99,969 98,001 99,456 96,487
Diluted 103,001 102,889 110,049 107,277 96,487
RAMBUS INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, June 30, September 30,
2001 2001 2000
(unaudited)
ASSETS
Current assets:
Cash and
cash equivalents $ 44,195 $ 57,741 $ 63,093
Marketable
securities 85,700 77,743 59,127
Accounts
receivable 2,368 6,099 68
Prepaid and
deferred taxes 21,384 27,054 17,661
Prepaids and
other current assets 3,319 3,143 2,988
--------- --------- ---------
Total current assets 156,966 171,780 142,937
Property and
equipment, net 15,862 16,466 6,724
Marketable
securities,
less current portion 12,057 5,467 7,548
Restricted cash 13,605 5,564 2,500
Deferred taxes,
long-term 49,904 49,571 55,404
Other assets 8,744 8,729 4,518
--------- --------- ---------
Total assets $ 257,138 $ 257,577 $ 219,631
========= ========= =========
Total cash,
cash equivalents
and marketable
securities $ 155,557 $ 146,515 $ 132,268
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
and other
current liabilities $ 7,977 $ 10,308 $ 9,032
Current portion
of deferred revenue 14,398 15,727 24,155
--------- --------- ---------
Total current
liabilities 22,375 26,035 33,187
Deferred revenue,
less current portion 24,058 27,132 24,122
--------- --------- ---------
Total liabilities 46,433 53,167 57,309
--------- --------- ---------
Stockholders' equity:
Common stock 100 100 97
Additional
paid-in capital 302,259 302,878 285,885
Deferred
stock-based
compensation (461) (488) (571)
Accumulated deficit (91,861) (98,343) (123,132)
Accumulated
other comprehensive
gain 668 263 43
--------- --------- ---------
Total stockholders'
equity 210,705 204,410 162,322
--------- --------- ---------
Total liabilities
and stockholders'
equity $ 257,138 $ 257,577 $ 219,631
========= ========= =========
Contact:
Rambus Inc.
Sr. Vice President, Finance & CFO
Bob Eulau, 650/947-5000
or
Rambus Investor Relations
Susan Berry, 650/947-5050
