- Delivered strong Q4 results with revenue and earnings at the high end of guidance
- Generated $54.8 million in cash from operations in Q4
- Produced quarterly product revenue of $53.7 million driven by memory interface chips
- Launched industry’s first Gen4 DDR5 RCD for server memory modules
SAN JOSE, Calif. — (BUSINESS WIRE) — February 5, 2024 — Rambus Inc. (NASDAQ: RMBS), a provider of industry-leading chips and IP making data faster and safer, today reported financial results for the fourth quarter ended December 31, 2023. GAAP revenue for the fourth quarter was $122.2 million; licensing billings were $66.2 million, product revenue was $53.7 million, and contract and other revenue was $16.1 million. The Company also generated $54.8 million in cash provided by operating activities in the fourth quarter.
“Through continued product leadership and outstanding execution on our strategy, we delivered a strong fourth quarter and full-year results that outpaced the overall semiconductor market,” said Luc Seraphin, chief executive officer of Rambus. “With our focus on high-performance solutions for the data center and AI, we are well positioned to drive the long-term profitable growth of the company and consistently return value to our stockholders.”
Quarterly Financial Review - GAAP |
|
Three Months Ended
|
||||||
(In millions, except for percentages and per share amounts) |
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
|
|
|
||||
Product revenue |
|
$ |
53.7 |
|
|
$ |
67.2 |
|
Royalties |
|
|
52.4 |
|
|
|
31.4 |
|
Contract and other revenue |
|
|
16.1 |
|
|
|
23.8 |
|
Total revenue |
|
|
122.2 |
|
|
|
122.4 |
|
Cost of product revenue |
|
|
19.9 |
|
|
|
28.2 |
|
Cost of contract and other revenue |
|
|
1.1 |
|
|
|
1.6 |
|
| Amortization of acquired intangible assets (included in total cost of revenue) |
|
|
3.1 |
|
|
|
3.6 |
|
| Total operating expenses (1) |
|
|
63.0 |
|
|
|
72.8 |
|
| Operating income |
|
$ |
35.1 |
|
|
$ |
16.2 |
|
| Operating margin |
|
|
29 |
% |
|
|
13 |
% |
| Net income |
|
$ |
58.5 |
|
|
$ |
15.9 |
|
| Diluted net income per share |
|
$ |
0.53 |
|
|
$ |
0.14 |
|
|
|
|
|
|
|
||||
| Net cash provided by operating activities |
|
$ |
54.8 |
|
|
$ |
51.3 |
|
| ____________________________ |
||
| (1) |
Includes amortization of acquired intangible assets of approximately $0.2 million and $0.4 million for the three months ended December 31, 2023 and 2022, respectively. |
|
| Quarterly Financial Review - Supplemental Information (1) |
|
Three Months Ended
|
|||||
| (In millions) |
|
2023 |
|
2022 |
|||
| Licensing billings (operational metric) (2) |
|
$ |
66.2 |
|
$ |
64.3 |
|
| Product revenue (GAAP) |
|
$ |
53.7 |
|
$ |
67.2 |
|
| Contract and other revenue (GAAP) |
|
$ |
16.1 |
|
$ |
23.8 |
|
| Non-GAAP cost of product revenue |
|
$ |
19.8 |
|
$ |
28.1 |
|
| Cost of contract and other revenue (GAAP) |
|
$ |
1.1 |
|
$ |
1.6 |
|
| Non-GAAP total operating expenses |
|
$ |
51.0 |
|
$ |
55.8 |
|
| Non-GAAP interest and other income (expense), net |
|
$ |
3.6 |
|
$ |
(0.7 |
) |
| Diluted share count (GAAP) |
|
|
110 |
|
|
111 |
|
| ____________________________ |
||
| (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. |
|
