• 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 Record First Quarter Revenue and Earnings

Rambus Reports Record First Quarter Revenue and Earnings

Revenue of $161.9 million and diluted net income per share of $1.28 for the first quarter

LOS ALTOS, CALIFORNIA, UNITED STATES – 04/22/2010 – Rambus Inc. (Nasdaq:RMBS), one of the world’s premier technology licensing companies, today reported financial results for the first quarter of 2010.

Revenue for the first quarter of 2010 was $161.9 million, up 425% sequentially from the fourth quarter of 2009 and up 492% from the quarter a year ago, primarily due to the agreements signed with Samsung during the first quarter of 2010.

“The Samsung agreement was a transformational event driving record revenues this quarter,” said Harold Hughes, president and chief executive officer at Rambus. “This agreement, along with the AMD license renewal, reflects a recognition of the ongoing value of our portfolio of patented innovations and demonstrates the momentum of our licensing efforts.”

Samsung is expected to make payments to the Company totaling approximately $900.0 million over a five-year period in connection with the settlement agreements, which include the purchase of 9.6 million shares of Rambus common stock for $200.0 million. In the first quarter of 2010, the Company received cash consideration of $425.0 million from Samsung, recognized as follows:

  • Revenue of $137.1 million
  • Gain from settlement of $95.9 million
  • Contingently redeemable common stock and stockholders’ equity of $192.0 million related to the 9.6 million of common stock issued to Samsung

The remaining $475.0 million is expected to be paid in successive quarterly payments of approximately $25.0 million (subject to adjustments per the terms of the license agreement), concluding in the last quarter of 2014.

Revenue and cash receipts resulting from the Samsung agreement for the first quarter of 2010 and future periods are expected to be recognized as follows (in millions):

 

of 2010
Revenue $ 137.1 $ 44.1 $ 93.8 $ 100.0 $ 100.0 $ 100.0
Gain from settlement $ 95.9 $ 30.9 $ 6.2 $ — $ — $ —
Purchase of common stock $ 192.0 $ — $ — $ — $ — $ —
$ 425.0 $ 75.0 $ 100.0 $ 100.0 $ 100.0 $ 100.0

 

A comparison of the current quarter with the previous quarter and the prior year period is set out below:

 

Three Quarter Comparison
Condensed Consolidated Statements of Operations
(In millions)

Provision for (benefit from) income taxes

Revenue:
Royalties 160.6 $ 30.2 $ 26.1
Contract revenue 1.3 .0.6 1.2
Total revenue 161.9 30.8 27.3
Costs and expenses:
Cost of revenue 1.9 1.4 2.2
Research and development 21.7 17.0 17.8
Marketing, general and administrative 31.5 28.6 37.1
Costs (recoveries) of restatement and related legal activities 0.5 0.5 (13.6)
Gain from settlement (95.9) — —
Total costs and expenses (recoveries) (40.3) 47.5 43.5
Operating income (loss) 202.2 (16.7) (16.2)
Interest and other income, net 0.4 0.6 1.4
Interest expense (6.0) (7.8) (2.6)
Interest and other income (expense), net (5.6) (7.2) (1.2)
Income (loss) before income taxes 196.6 (23.9) (17.4)
45.7 (0.6) —
Net income (loss) $ 150.9 $ (23.3) $ (17.4)

 

Total costs and expenses (recoveries) for the first quarter of 2010 were a recovery of $40.3 million, which included $95.9 million gain related to the Samsung settlement, $7.8 million of stock-based compensation expenses and $0.5 million for previous stock-based compensation restatement and related legal expenses. This is compared to total costs and expenses of $47.5 million for the fourth quarter of 2009, which included $7.6 million of stock-based compensation expenses and $0.5 million for previous stock-based compensation restatement and related legal expenses. General litigation expenses for the first quarter were $7.0 million, a decrease of $3.6 million from the fourth quarter of 2009.

Total costs and expenses in the first quarter of last year were $43.5 million, which included $8.4 million of stock-based compensation expenses and a net recovery of $13.6 million of previous stock-based compensation restatement and related legal expenses as a result of reimbursements from insurance carriers and settlement payments from former executives. General litigation expenses in the first quarter of 2010 decreased $11.0 million from the first quarter of 2009.

Interest and other expense, net, for the first quarter of 2010 was $5.6 million as compared to $7.2 million in the fourth quarter of 2009 and $1.2 million in the first quarter of 2009.

During the quarter ended March 31, 2010, the Company paid withholding taxes of $42.6 million to the Korean tax authorities. The Company recorded a provision for income taxes of $45.7 million for the first quarter of 2010, which is primarily comprised of the Korean taxes and alternative minimum taxes. As the Company continues to maintain a valuation allowance against its U.S. deferred tax assets, the Company’s tax provision is based on its anticipated cash tax payments related to the quarter. By comparison, the Company recorded a tax benefit of $0.6 million for the quarter ended December 31, 2009 and a tax benefit of $7 thousand for the quarter ended March 31, 2009.

Net income for the first quarter of 2010 was $150.9 million as compared to a net loss of $23.3 million in the fourth quarter of 2009 and a net loss of $17.4 million in the first quarter of 2009. Diluted net income per share for the first quarter of 2010 was $1.28 as compared to a net loss per share of $0.22 in the fourth quarter of 2009 and a net loss per share of $0.17 for the first quarter of 2009.

Cash, cash equivalents, and marketable securities as of March 31, 2010 were $668.7 million, up approximately $208.5 million from December 31, 2009. During the first quarter of 2010, the Company received approximately $382.4 million related to the Samsung settlement agreement net of withholding taxes, offset by cash used to settle the $137.0 million in face value of the Zero Coupon Convertible Senior Notes due 2010 and to repurchase common stock with an aggregate value of $26.5 million.

The conference call discussing 2010 first quarter results will be webcast live via the Rambus Investor Relations website (http://investor.rambus.com) at 2:00 p.m. Pacific Time today. A replay will be available following the call on Rambus’ Investor Relations website and for one week at the following numbers: (888) 203-1112 (domestic) or (719) 457-0820 (international) with ID# 68105210.

About Rambus Inc.

Rambus is one of the world’s premier technology licensing companies. Founded in 1990, the Company specializes in the invention and design of architectures focused on enhancing the end-user experience of computing, communications and consumer electronics applications. Additional information is available at www.rambus.com.

Forward-Looking Statements

This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 relating to the receipt by Rambus of expected payments under its license agreement with Samsung and related matters. The expected payments are subject to various adjustments under the license agreement and subject to general business and commercial risks. Such forward-looking statements are based on current expectations, estimates and projections, management’s beliefs and certain assumptions made by Rambus’ management. Actual results may differ materially. Rambus’ business generally is subject to a number of risks which are described more fully in Rambus’ periodic reports filed with the Securities and Exchange Commission. Rambus undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

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