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 EndedSept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,2001 2001 2000 2001 2000Revenues:Contractrevenues 2,833 $ 3,514 $ 6,987 $ 21,797 $ 39,683
Royalties 25,063 19,787 19,921 95,363 32,628------- -------- -------- -------- --------
Totalrevenues 27,896 23,301 26,908 117,160 72,311------- -------- -------- -------- --------Costs andexpenses:Cost ofcontractrevenues 1,894 2,692 2,666 9,863 12,093Research anddevelopment 4,814 4,601 3,299 17,319 10,699Marketing,general &administrative 5,846 5,131 5,011 21,238 17,344Litigationexpense 6,808 8,762 1,461 27,140 3,796------- -------- -------- -------- --------Total costsand expenses 19,362 21,186 12,437 75,560 43,932------- -------- -------- -------- --------Operatingincome 8,534 2,115 14,471 41,600 28,379Other income 1,986 2,317 1,254 8,931 4,714------- -------- -------- -------- --------Pro formaincome beforeincome taxes 10,520 4,432 15,725 50,531 33,093Provisionfor incometaxes 3,893 572 5,504 18,696 11,583------- -------- -------- -------- --------Pro formanet income 6,627 $ 3,860 $ 10,221 $ 31,835 $ 21,510======= ======== ======== ======== ========Pro forma netincome pershare - basic 0.07 $ 0.04 $ 0.10 $ 0.32 $ 0.22======= ======== ======== ======== ========Pro forma netincome pershare- diluted 0.06 $ 0.04 $ 0.09 $ 0.30 $ 0.20======= ======== ======== ======== ========Shares usedin per sharecalculation:Basic 100,190 99,969 98,001 99,456 96,487Diluted 103,001 102,889 110,049 107,277 107,775
Notes:
1. Pro forma income shown above excludes the effect of amortizationof goodwill and other acquisition-related intangibles of $221K inthe three months ended 9/30/01, $221K in the three months ended6/30/01, $221K in the three months ended 9/30/00, $885K in theyear ended 9/30/01 and $802K in the year ended 9/30/00, one-timeemployee compensation expenses of $171 million in the year ended9/30/00; and one-time tax adjustment of $38 million in the threemonths and year ended 9/30/00.
2. This pro forma information is not prepared in accordance withgenerally accepted accounting principles.
3. A reconciliation from pro forma net income to the reported resultsis 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 EndedSept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,2001 2001 2000 2001 2000Pro formanet income $ 6,627 $ 3,860 $ 10,221 $ 31,835 $ 21,510Acquisition-relatedexpenses (221) (221) (221) (885) (802)Employeecompensationexpense -- -- -- -- (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 formanet incomeper share- basic $ 0.07 $ 0.04 $ 0.10 $ 0.32 $ 0.22Acquisition-relatedexpenses (0.01) (0.00) (0.00) (0.01) (0.00)Employeecompensationexpense -- -- -- -- (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 formanet incomeper share- diluted $ 0.06 $ 0.04 $ 0.09 $ 0.30 $ 0.20Acquisition-relatedexpenses (0.00) (0.00) (0.00) (0.01) (0.00)Employeecompensationexpense -- -- -- -- (1.59)Tax adjustment -- -- 0.40 -- 0.40Differencein sharecount* -- -- -- -- (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 equivalentshares representing outstanding stock options and warrants inperiods with profits and exclusion of such equivalent shares inperiods with losses.
RAMBUS INC.CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share amounts)
Three Months Ended Year EndedSept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,2001 2001 2000 2001 2000(unaudited)(unaudited)(unaudited)Revenues:Contractrevenues $ 2,833 $ 3,514 $ 6,987 $ 21,797 $ 39,683Royalties 25,063 19,787 19,921 95,363 32,628-------- --------- --------- -------- ---------Totalrevenues 27,896 23,301 26,908 117,160 72,311-------- --------- --------- -------- ---------Costs andexpenses:
Cost ofcontractrevenues 1,894 2,692 2,666 9,863 12,093Researchanddevelopment 5,035 4,822 3,520 18,204 11,501Marketing,general &administrative 12,654 13,893 6,472 48,378 21,140
Employeecompensationexpense -- -- -- -- 171,085-------- --------- --------- -------- ---------
Total costsand expenses 19,583 21,407 12,658 76,445 215,819-------- --------- --------- -------- ---------
Operatingincome(loss) 8,313 1,894 14,250 40,715 (143,508)Otherincome 1,986 2,317 1,254 8,931 4,714-------- --------- --------- -------- ---------
Income (loss)beforeincome taxes 10,299 4,211 15,504 49,646 (138,794)Provisionfor incometaxes(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 usedin per sharecalculation:Basic 100,190 99,969 98,001 99,456 96,487Diluted 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)ASSETSCurrent assets:Cash andcash equivalents $ 44,195 $ 57,741 $ 63,093Marketablesecurities 85,700 77,743 59,127Accountsreceivable 2,368 6,099 68Prepaid anddeferred taxes 21,384 27,054 17,661Prepaids andother current assets 3,319 3,143 2,988--------- --------- ---------Total current assets 156,966 171,780 142,937Property andequipment, net 15,862 16,466 6,724Marketablesecurities,less current portion 12,057 5,467 7,548Restricted cash 13,605 5,564 2,500Deferred taxes,long-term 49,904 49,571 55,404Other assets 8,744 8,729 4,518--------- --------- ---------Total assets $ 257,138 $ 257,577 $ 219,631========= ========= =========Total cash,cash equivalentsand marketablesecurities $ 155,557 $ 146,515 $ 132,268
LIABILITIES ANDSTOCKHOLDERS' EQUITYCurrent liabilities:Accounts payableand othercurrent liabilities $ 7,977 $ 10,308 $ 9,032Current portionof deferred revenue 14,398 15,727 24,155--------- --------- ---------Total currentliabilities 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 97Additionalpaid-in capital 302,259 302,878 285,885Deferredstock-basedcompensation (461) (488) (571)Accumulated deficit (91,861) (98,343) (123,132)Accumulatedother comprehensivegain 668 263 43--------- --------- ---------Total stockholders'equity 210,705 204,410 162,322--------- --------- ---------Total liabilitiesand 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