Rambus Reports Results for the Third Fiscal Quarter - 3rd qtr 1999 - Company Financial Information

Edge: Work-Group Computing Report, July 19, 1999

Rambus Inc. (Nasdaq: RMBS) Wednesday reported financial results for the three and nine month periods ended June 30, 1999.

Third quarter revenues of $10.6 million were up 16% over the same period last year and up 8% over the previous quarter. Revenues for the first nine months of fiscal 1999 were $31.1 million, an increase of 10% over the same period in fiscal 1998. The Company's revenues for the third quarter include approximately $500,000 of deferred revenue recognized on a contract terminated by Rambus due to the nonperformance of a licensee.

Operating income for the third quarter was $2.1 million compared to $1.8 million in the same period last year and $1.6 million in the previous quarter. For the nine-month period, operating income was $6.1 million compared to $6.2 million last year. Third quarter diluted earnings per share were $0.08 compared to $0.07 in the same period last year and $0.08 in the previous quarter. Diluted earnings per share for the first nine months of fiscal 1999 were $0.24 compared to $0.21 for the same period in fiscal 1998.

During the third fiscal quarter VLSI Technology, Inc. and PixelFusion, Ltd. announced Rambus licenses. In addition, by the end of the quarter six Rambus DRAM licensees had validated twelve different 72M, 128M and 144M RDRAMs, all but one for operation at the full 800MHz specification, and a total of seven memory module suppliers had validated 28 different RIMM configurations ranging from 64MB to 288MB capacity. Also during the quarter, Micron Technology announced shipment of its first samples of 128M and 144M RDRAMs.

Rambus Inc. designs, develops, licenses and markets high-speed chip-to-chip interface technology to enhance the performance and cost-effectiveness of consumer electronics, computer systems and other electronic systems. The Company licenses semiconductor companies to manufacture and sell memory and logic ICs incorporating Rambus interface technology and markets its solution to systems companies to encourage them to design Rambus interface technology into their products.

                           RAMBUS INC.
              CONSOLIDATED STATEMENTS OF OPERATIONS
            (in thousands, except per share amounts)
                           (unaudited)

                        Three Months Ended        Nine Months Ended
                    June 30, March 31, June 30,   June 30,  June 30,
                     1999      1999      1998      1999      1998

Revenues:
Contract revenues   $ 8,830 $ 7,945   $ 7,535  $ 24,723  $ 21,333
Royalties             1,802     1,914     1,625     6,342     6,868

Total revenues       10,632     9,859     9,160  31,065    28,201

Costs and expenses:
Cost of contract
 revenues             3,944     2,485     2,490   8,531     6,439
Research and
 development          1,111     2,498     2,183     6,698     7,152
Marketing, general &
 administrative       3,520   3,293     2,687     9,783     8,458

Total costs and
 expenses             8,575     8,276     7,360  25,012    22,049

Operating income      2,057     1,583     1,800   6,053     6,152
Other income            900   1,657     1,018     3,569     2,244

Income before income
 taxes                2,957     3,240   2,818     9,622     8,396
Provision for income
 taxes                  956     1,231     1,123     3,557     3,354

Net income          $ 2,001   $ 2,009   $ 1,695   $ 6,065   $ 5,042

Net income per share$  0.09   $  0.09   $  0.07   $  0.26   $  0.22

Net income per
 share-assuming
 dilution           $  0.08   $  0.08   $  0.07   $  0.24   $  0.21

Shares used in per
 share calculation:
Basic                23,478    23,209    22,797    23,240  22,639
Assuming dilution    25,038    24,980  24,360  24,969    24,329


                           RAMBUS INC.
                   CONSOLIDATED BALANCE SHEETS
                         (in thousands)

                                  June 30,    March 31,  Sept. 30,
                                   1999         1999       1998
                                (unaudited) (unaudited)

ASSETS
Current assets:
Cash and cash equivalents       $   9,861    $  17,855  $  25,798
Marketable securities              73,402       65,584     53,913
Accounts receivable                 1,875        2,004      1,913
Prepaids and other current assets   8,290      8,711     10,169

Total current assets               93,428       94,154     91,793
Property and equipment, net         4,535        4,650    3,989
Marketable securities,
 less current portion              10,230     11,358      8,357
Investments                           200        200    1,251
Other assets                        5,068        5,643      5,597

Total assets                    $ 113,461    $ 116,005  $ 110,987

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
 other current liabilities      $   2,902    $   4,426  $   3,428
Current portion of capital
 lease obligations                    --            29        130
Current portion of deferred
 revenue                           25,621       26,031     28,617

Total current liabilities          28,523       30,486     32,175

Deferred revenue, less
 current portion                   30,358       35,138     37,020

Total liabilities                  58,881       65,624     69,195

Stockholders' equity:
Common stock                           23           23         23
Additional paid-in capital         74,251       72,035     67,617
Accumulated deficit               (19,658)     (21,659)   (25,723)
Cumulative translation
 adjustment                           (36)         (18)      (125)

Total stockholders' equity         54,580     50,381     41,792

Total liabilities and
 stockholders' equity           $ 113,461    $ 116,005  $ 110,987