- Delivered strong Q2 results with revenue in line and earnings at the high end of guidance
- Generated $50.4 million in cash from operations
- Produced quarterly product revenue of $55.0 million driven by memory interface chips
SAN JOSE, Calif. — (BUSINESS WIRE) — July 31, 2023 — Rambus Inc. (NASDAQ: RMBS), a provider of industry-leading chips and IP making data faster and safer, today reported financial results for the second quarter ended June 30, 2023. GAAP revenue for the second quarter was $119.8 million, licensing billings were $60.2 million, product revenue was $55.0 million, and contract and other revenue was $24.1 million. The Company also generated $50.4 million in cash provided by operating activities in the second quarter.
“Rambus delivered a strong second quarter with solid results and execution from the team as we continue to successfully navigate through challenging market conditions,” said Luc Seraphin, chief executive officer of Rambus. “By delivering the critical chips and IP that address the growing demand in data center fueled by AI, we are well positioned to drive the company’s long-term profitable growth."
Quarterly Financial Review - GAAP |
Three Months Ended June 30, |
||||||
(In millions, except for percentages and per share amounts) |
|
2023 |
|
|
|
2022 |
|
Revenue |
|
|
|
||||
Product revenue |
$ |
55.0 |
|
|
$ |
53.3 |
|
Royalties |
|
40.7 |
|
|
|
48.0 |
|
Contract and other revenue |
|
24.1 |
|
|
|
19.8 |
|
Total revenue |
|
119.8 |
|
|
|
121.1 |
|
Cost of product revenue |
|
18.7 |
|
|
|
20.4 |
|
Cost of contract and other revenue |
|
1.3 |
|
|
|
1.0 |
|
Amortization of acquired intangible assets (included in total cost of revenue) |
|
3.6 |
|
|
|
3.4 |
|
| Total operating expenses (1) |
|
84.5 |
|
|
|
60.8 |
|
| Operating income |
$ |
11.7 |
|
|
$ |
35.5 |
|
| Operating margin |
|
10 |
% |
|
|
29 |
% |
| Net income |
$ |
168.9 |
|
|
$ |
35.0 |
|
| Diluted net income per share |
$ |
1.51 |
|
|
$ |
0.31 |
|
| Net cash provided by operating activities |
$ |
50.4 |
|
|
$ |
56.5 |
|
| _________________________________________ |
||
| (1) |
Includes amortization of acquired intangible assets of approximately $0.4 million for each of the three months ended June 30, 2023 and 2022. |
|
| Quarterly Financial Review - Supplemental Information (1) |
Three Months Ended June 30, |
||||
| (In millions) |
|
2023 |
|
|
2022 |
| Licensing billings (operational metric) (2) |
$ |
60.2 |
|
$ |
66.1 |
| Product revenue (GAAP) |
$ |
55.0 |
|
$ |
53.3 |
| Contract and other revenue (GAAP) |
$ |
24.1 |
|
$ |
19.8 |
| Non-GAAP cost of product revenue |
$ |
18.6 |
|
$ |
20.3 |
| Cost of contract and other revenue (GAAP) |
$ |
1.3 |
|
$ |
1.0 |
| Non-GAAP total operating expenses |
$ |
55.9 |
|
$ |
54.9 |
| Non-GAAP interest and other income (expense), net |
$ |
1.2 |
|
$ |
1.0 |
| Diluted share count (GAAP) |
|
112 |
|
|
113 |
| _________________________________________ | ||
| (1) |
See “Supplemental Reconciliation of GAAP to Non-GAAP Results” table included below. |
|
|
|
||
| (2) |
Licensing billings is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences relating to advanced payments for variable licensing agreements. |
|
