Company achieves third straight quarter of sequential revenue growth
Fiscal Q1 earnings announcement call live on website (www.rambus.com) at 1:30 p.m. PST. Conference call replay number 800-642-1687 (ID: 7474728); replay also available on website. Replay available for one week, beginning at 5:00 p.m. PST.
LOS ALTOS, CA - January 13, 2003 - Rambus Inc. (Nasdaq:RMBS), a leading provider of chip-to-chip interface products and services, today reported financial results for its first fiscal quarter ended December 31, 2002. Earnings per share for the December quarter were 6 cents, compared to 6 cents in the same period last year and 6 cents in the previous quarter. Net income for the December quarter was $5.5 million (22% of revenues), compared to $6.2 million in the same period last year and $5.9 million in the previous quarter. Revenue for the quarter was $25.7 million, up 3% over the same period last year and up 5% from the previous quarter.
"This quarter we achieved revenue growth and consistent earnings per share while continuing to increase research and development investments," said Geoff Tate, CEO of Rambus Inc. "Even in this tough economic climate we are actively hiring with the intention to grow our engineering staff by over 25% this year."
December quarter results include $24.3 million in royalties, up 12% over the same period last year and up 5% from the previous quarter. Royalties were up sequentially for SDRAM and DDR memories and memory controllers as well as for RDRAM memory and memory controllers.
Total costs and expenses in the December quarter increased $1.9 million from last quarter mostly as a result of an increase in litigation costs. Costs associated with litigation were $4.5 million in the December quarter versus $2.8 million in the prior quarter. Litigation costs were roughly equal to the same quarter last year. Overall, total costs and expenses were $18.9 million versus $17 million last quarter and $17.3 million in the comparable period last year.
Rambus is a leading provider of chip-to-chip interface products and services. The company's breakthrough technology and engineering expertise have helped leading chip and system companies to solve their challenging interface problems and bring industry-leading products to market. Rambus' interface solutions can be found in hundreds of computing, consumer electronic and networking products. Additional information is available at www.rambus.com.
This release and the conference call on today's date contain forward-looking statements under the Private Securities Litigation Reform Act of 1995 regarding the Company's financial prospects, development plans, anticipated product shipment dates, litigation prospects, relations with licensees and other third parties and various other matters. Such forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs, and certain assumptions made by the Company's management. Actual results may differ materially. Among the reasons which could cause actual results to differ materially are the possibility of inadequate shipments of Rambus RDRAM memory devices and controllers for the Sony PlayStation2 and the PC main memory market, the market response to these products, the continued deterioration in the DRAM market, 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 strong response of the market to competing technology, a lack of progress on price and cost reduction by RDRAM suppliers, a failure to sign new contracts or maintain existing contracts for RDRAM, Yellowstone, RaSer or SDRAM-compatible and DDR-compatible ICs, adverse litigation decisions and other factors that are described in our SEC filings including our 10-K and 10-Qs.
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