• Skip to primary navigation
  • Skip to main content
  • Skip to footer
  • English
  • Investor Relations
  • Resource Library
  • Newsroom
  • Blog
  • Careers
  • Support Center
Rambus Logo

Rambus

At Rambus, we create cutting-edge semiconductor and IP products, spanning memory and interfaces to security, smart sensors and lighting.

  • Products
      • All
          • Memory Interface Chips
          • DIMM Chipsets
          • DDR5 DIMM Chipset
          • DDR4 NVRCD
          • DDR4 Register Clock Driver
          • DDR4 Data Buffer
          • CXL Memory Interconnect Initiative
          • Interface IP
          • Memory PHYs
          • GDDR6 PHY
          • HBM3 PHY
          • HBM2E PHY
          • DDR4 PHY
          • More…
          • SerDes PHYs
          • PCIe 6.0 PHY
          • PCIe 5.0 PHY
          • 32G C2C PHY
          • 32G PHY
          • 28G PHY
          • More…
          • Digital Controllers
          • Memory Controllers
          • CXL & PCI Express Controllers
          • MIPI Controllers
          • Video Compression and Forward Error Correction Cores
          • Security IP
          • Root of Trust Solutions
          • Security Protocol Engines
          • Inline Cipher Engines
          • Crypto Accelerator Cores
          • DPA Countermeasures
          • Software Protocols & Crypto Toolkits
          • Anti-Counterfeiting
          • Provisioning and Key Management
      • Memory Interface Chips
        • DIMM Chipsets
          • DDR5 DIMM Chipset
          • Non-Volatile DDR4 Registering Clock Driver
          • DDR4 Register Clock Driver
          • DDR4 Data Buffer
          • DDR3 Register Clock Driver
          • DDR3 Isolation Memory Buffer
        • CXL Memory Interconnect Initiative

        • Made for high speed, reliability and power efficiency, our DDR3, DDR4, and DDR5 DIMM chipsets deliver top-of-the-line performance and capacity for the next wave of computing systems. Learn more about our Memory Interface Chip solutions
      • Interface IP
          • Memory PHYs
            • GDDR6 PHY
            • HBM3 PHY
            • HBM2E PHY
            • DDR4 PHY
            • DDR4 Multi-modal PHY
            • DDR3 PHY
          • SerDes PHYs
            • PCIe 6.0 PHY
            • PCIe 5.0 PHY
            • PCIe 4.0 PHY
            • 32G C2C PHY
            • 32G PHY
            • 28G PHY
            • 16G PHY
            • 12G PHY
            • 6G PHY
          • Digital Controllers
            • HBM3 Controller
            • HBM2E Controller
            • GDDR6 Controller
            • LPDDR5 Controller
            • CXL 2.0 Controller
            • PCIe 6.0 Controller
            • PCIe 5.0 Controller
            • MIPI CSI-2/DSI-2 Controllers
            • Video Compression and Forward Error Correction Cores
            • More…

        • With their reduced power consumption and industry-leading data rates, our line-up of memory interface IP solutions support a broad range of industry standards with improved margin and flexibility. Learn more about our Interface IP solutions
      • Security IP
          • Root of Trust Solutions
          • Security Protocol Engines
            • MACsec Engines
            • IPsec, TLS, SSL Multi-Protocol Engines
            • High Speed Public Key Accelerator
          • Inline Cipher Engines
          • Crypto Accelerator Cores
            • DPA Resistant Cores
            • Basic Crypto Blocks
          • Anti-Counterfeiting
            • CryptoFirewall Cores
            • Circuit Camouflage Technology
          • DPA Countermeasures
            • DPA Resistant Cores
            • DPA Resistant Software Libraries
            • DPA Workstation Platform
          • Software Protocols & Crypto Toolkits
            • IPsec Toolkit
            • FIPs Cryptographic Libraries
            • MACsec Toolkit
            • IoT Security Framework
          • CryptoMedia
            • Content Protection Core
            • Content Protection Services
          • Provisioning and Key Management
            • CryptoManager Provisioning
            • CryptoManager Device Key Management

        • From chip-to-cloud-to-crowd, Rambus secure silicon IP helps protect the world’s most valuable resource: data. Securing electronic systems at their hardware foundation, our embedded security solutions span areas including root of trust, tamper resistance, content protection and trusted provisioning. Learn more about our Security IP offerings
  • Markets
      • AI & Machine Learning
        • Speed and Security for the Artificial Intelligence & Machine Learning Revolution
          • Products
          • SerDes PHYs
          • Memory PHYs
          • Digital Controllers
          • Memory Interface Chips
          • Root of Trust
          • Crypto Accelerator Cores
          • Protocol Engines
          • Provisioning and Key Management
          • AI & Machine Learning
      • Automotive
        • Providing Performance & Security for the Connected Car
          • Products
          • Memory PHYs
          • SerDes PHYs
          • Digital Controllers
          • Root of Trust
          • PKE Engine
          • MACsec Engines
          • Crypto Accelerator Cores
          • Provisioning and Key Management
          • Explore Automotive
      • Data Center
        • Optimizing capacity, connectivity and capability of the cloud
          • Products
          • SerDes PHYs
          • Memory PHYs
          • Digital Controllers
          • Memory Interface Chips
          • Root of Trust
          • MACsec Engines
          • Software Protocols
          • Provisioning and Key Management
          • See Data Center
      • Edge
        • Catching a tidal wave of data
          • Products
          • Memory PHYs
          • SerDes PHYs
          • Digital Controllers
          • Root of Trust
          • Crypto Accelerator Cores
          • Protocol Engines
          • Software Protocols
          • Discover Edge
      • Government
        • Securing Mission-critical Systems
          • Products
          • Root of Trust
          • Protocol Engines
          • Anti-Tamper Cores
          • Provisioning and Key Management
          • DPA Workstation Platform
          • SerDes PHYs
          • Memory PHYs
          • Digital Controllers
          • See Government
      • IoT
        • Making IoT Data Safe & Fast
          • Products
          • Root of Trust
          • TLS Toolkits
          • Provisioning and Key Management
          • Memory PHYs
          • SerDes PHYs
          • Digital Controllers
          • Explore IoT
  • Resources
    • Inventions
    • Buying Guide
    • Resource Library
      • Webinars
      • Product Selector
  • About
      • Corporate Overview
      • Leadership
      • Inventors
      • Careers
      • Locations
      • Investor Relations
      • Newsroom
      • Blog
      • Events
      • Partnerships
      • Certifications
      • Corporate Responsibility
      • Contact
Home > Press Releases > Corporate > Financial > Rambus Reports First Quarter Earnings

Rambus Reports First Quarter Earnings

Record revenue of $47.2 million, up 19% from the first quarter last year

Los Altos, California, United States – 04/19/2006
Rambus Inc. (Nasdaq: RMBS), one of the world’s premier technology licensing companies specializing in high-speed chip interfaces, today reported financial results for the first quarter of 2006.

The new format of this release reflects that effective the first quarter of 2006, Rambus began recognizing stock-based compensation pursuant to the provisions of FAS 123®, which require that stock-based compensation to employees be recognized over the period in which an employee is required to provide service in exchange for the award. The stock-based compensation recognized on the Statement of Operations is a non-cash expense. The Company derives the fair value of stock-based compensation using a Black-Scholes Merton Model. Rambus’ stock is highly volatile. The higher the volatility of a stock, the higher the stock-based compensation cost calculated by the Model. Rambus has elected to transition to FAS 123® using the Modified Prospective Method, which does not require a restatement of prior periods. Management focuses on non-GAAP operating income (before stock-based compensation) as a key planning and analysis metric. We have included non-GAAP financial information in this release in order to facilitate quarter to quarter comparison and to allow investors to see the Company’s results “through the eyes of management.” The non-GAAP financial information presented herein should be considered in addition to, not as a substitute for, financial measures calculated in accordance with GAAP.

REVENUE for the first quarter was $47.2 million, up 19% over the first quarter last year and up 14% from the previous quarter. This increase was due chiefly to royalty fees received as a result of the AMD and Fujitsu agreements, signed in the fourth quarter of 2005 and the first quarter of 2006, respectively. Contract revenue decreased due to the completion of certain XDR™ DRAM and FlexIO™ processor bus related contracts in the fourth quarter of 2005.

“Achieving back to back record revenue is a great accomplishment and showcases the growing market appreciation of the value delivered by Rambus’ innovations,” said Harold Hughes, president and chief executiveofficer at Rambus. “We continue to make solid progress with our patent licensing efforts and are pleased with our results for the first quarter of 2006.”

TOTAL COSTS AND EXPENSES for the first quarter were $47.7million compared with $34.7 million in the first quarter last year and $34.3 million in the previous quarter. $8.4 million of the increase in expenses was due to the recognition of FAS 123® stock-based compensation in the first quarter of 2006. The Company also incurred approximately $1.6 million of employer payroll tax expense as the result of exercises of 3.8 million options in the first quarter. Cost of contract revenues was $6.8 million (including $1.4 million of non-cash stock-based compensation). Research and development expense was $16.8 million (including $2.7 million of non-cash stock-basedcompensation). Marketing, general and administrative expense was $15.7 million (including $4.3 million of non-cash stock-based compensation). The increase in research and development expense reflects the Company’s long-term plan to invest in research and development capability in the United States and Bangalore, while the increase in marketing, general and administrative expenses is a reflection of its commitment to a strong sales presence and a strong infrastructure to support its business and customers.

OPERATING INCOME/LOSS for the first quarter was an operating loss of $0.5 million (including $8.4 million of non-cash stock-basedcompensation) as compared to operating income of $4.9 million reported in the first quarter last year and operating income of $7.3 million reported the previous quarter.

NET INCOME for the first quarter was $1.8 million (including $5.2 million of after tax non-cash stock-based compensation) as compared to $4.4 million reported in the first quarter last year and $9.4 million reported in the previous quarter.

FULLY DILUTED EARNINGS PER SHARE for the first quarter were $0.02 as compared to $0.04 in the first quarter last year and $0.09 in the previous quarter.

CASH, cash equivalents and marketable securities increased by $35.3 million in the first quarter to an ending balance of $390.7 million as of March 31, 2006. The increase in cash was driven primarily by $43.3 million in cash received from stock option exercises for the first quarter of which $21.0 million was used to repurchase commonstock under the Company’s stock repurchase plan.

The earnings announcement call will be broadcast live on our website (www.rambus.com) at 2:00 p.m. Pacific Time today. Please log-on early if you do not already have the necessary software to listen to the call.

The conference call replay number is 888-203-1112 and the ID numberis 8412297. For international callers, the number is 719-457-0820. The replay will be available on our website beginning at 5:00 p.m. Pacific Time today.

About Rambus

Rambus is one of the world’s premier technology licensing companies specializing in the invention and design of high-speed chip interfaces. Since its founding in 1990, the Company’s patented innovations, breakthrough technologies and renowned integration expertise have helped industry-leading chip and system companies bring superior products to market. Rambus’ technology and products solve customers’ most complex chip and system-level interface challenges enabling unprecedented performance in computing, communications and consumer electronics applications. Rambus licenses both its world-class patent portfolio as well as its family of leadership and industry-standard nterface products. Headquartered in Los Altos, California, Rambus has regional offices in North Carolina, India, Germany, Japan and Taiwan. Additional information is available at www.rambus.com.

Condensed Consolidated Statements of Operations
(In thousands)
(Unaudited)
Three Months Ended
March 31, 2006 December 31, 2005 March 31, 2005
Revenues:
Contract Revenues $5,564 $6,904 $6,600
Royalties 41,681 34,685 33,011
Total Revenues 47,245 41,589 39,611
Costs and expenses:
Cost of contract revenues 6,765 (1) 4,742 5,603
Research and development 16,752 (2) 11,848 8,591
Marketing, general & administrative 15,731 (3) 9,422 9,358
Litigation expense 8,461 8,265 11,140
Total costs and expenses 47,709 (4) 34,277 34,692
Operating income (loss) (464) (5) 7,312 4,919
Interest and other income, net 3,445 8,084 2,129
Income before income taxes 2,981 (6) 15,396 7,048
Provision for income taxes 1,164 6,015 2,608
Net income $ 1,817 (7) $ 9,381 $ 4,440
Net income per share – basic $ 0.02 $ 0.09 $ 0.04
Net income per share – diluted $ 0.02 $ 0.09 $ 0.04
Shares used in per share calculations:
Basic 101,142 99,688 100,280
Diluted 109,332 103,561 105,913

(1) Cost of contract revenues includes non-cash stock-based compensation of $1,351.
(2) Research and development includes non-cash stock-based compensation of $2,700.
(3) Marketing, general and administrative includes non-cash stock-based compensation of $4,324.
(4) Total costs and expenses includes non-cash stock-based compensation of $8,375.
(5) Operating income (loss) includes non-cash stock-based compensation of $8,375.
(6) Income before income taxes includes non-cash stock-based compensation of $8,375.
(7) Net income includes after tax non-cash stock-based compensation of $5,200.

Three Months Ended

Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 31, 2006 December 31, 2005 March 31, 2005
Assets
Current assets:
Cash and cash equivalents $ 98,223 $ 42,391 $ 208,021
Marketable securities 173,164 118,416 96,802
Accounts receivable 1,808 954 3,596
Prepaid and deferred taxes 3,786 3,786 13,710
Prepaids and other current assets 6,023 4,235 4,009
Total current assets 283,004 169,782 326,138
Marketable securities, long-term 119,264 194,583 155,360
Deferred taxes, long-term 80,355 69,059 74,507
Purchased intangible assets, net 22,351 23,650 20,844
Property and equipment, net 20,885 18,898 18,130
Goodwill, net 3,315 3,315 581
Other assets 4,166 3,953 7,837
Total assets $ 535,638 $ 485,519 $ 608,473
Total cash, cash equivalents, and marketable securities $ 390,651 $ 355,390 $ 460,183
Liabilities And Stockholders’ Equity
Current liabilities:
Accounts payable and other current liabilities $ 25,110 $ 19,634 $ 21,671
Deferred revenue 1,369 973 13,447
Total current liabilities 26,479 20,607 35,118
Notes payable 160,000 160,000 300,000
Deferred revenue, less current portion 7,984 8,317 5,314
Other long-term liabilities 1,302 1,592 –
Total liabilities 195,765 190,516 340,432
Stockholders’ equity:
Common Stock 103 99 99
Additional paid-in capital 379,845 327,524 325,344
Deferred stock-based compensation – – (1,548)
Accumulated other comprehensive gain (loss) (1,721) (1,647) (1,617)
Accumulated deficit (38,354) (30,973) (54,237)
Total stockholders’ equity 339,873 295,003 268,041
Total liabilities and stockholders’ equity $ 535,638 $ 485,519 $ 608,473

Footer

About

  • Corporate Overview
  • Leadership
  • Careers
  • Locations
  • Investor Relations
  • News
  • Corporate Responsibility

Products

  • Memory PHYs
  • SerDes PHYs
  • Digital Controllers
  • Server DIMM Chipsets
  • Root of Trust Solutions
  • Provisioning and Key Management
  • Protocol Engines
  • Crypto Accelerator Cores
  • Software Protocols
  • DPA Countermeasures
  • Anti-Counterfeiting
  • CryptoMedia

Markets

  • AI & Machine Learning
  • Automotive
  • Data Center
  • Edge
  • Government
  • IoT
  • Pay TV

Resources

  • Resource Library
  • Webinars
  • Inventions
  • Buying Guide
  • Contact

Copyright © 2023 Rambus.com. All Rights Reserved. Privacy Policy | Trademark & Guidelines

  • Facebook icon
  • Twitter icon
  • YouTuve icon
  • LinkedIn icon
  • Blog icon