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Rambus Reports Record Quarterly Royalties, Revenue, Earnings; Fiscal Q1 Royalties Increase 35% Sequentially to $26.8 Million.



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LOS ALTOS Los Altos (lôs ăl`tōs, lŏs), residential city (1990 pop. 26,303), Santa Clara co., W Calif.; inc. 1952. There is diversified light manufacturing. , Calif.--(BUSINESS WIRE)--Jan. 11, 2001

Q1 earnings announcement call live on website (www.rambus See RDRAM. .com) at 2:00 p.m. PDT PDT
abbr.
Pacific Daylight Time


PDT Pacific Daylight Time

PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico

PDT 
. Conference call replay number 800-633-8284, reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another.  no. 17513649; replay also available on website. Replay available for 1 week, beginning at 4:00 p.m. PDT.

Rambus Inc. (Nasdaq:RMBS RMBS Residential Mortgage-Backed Securities
RMBS Rambus, Inc. (NASDAQ stock symbol)
RMBS Russian Mortgage-Backed Securities
) today reported financial results for its first fiscal quarter ended December December: see month.  31, 2000. Revenues for the quarter were a record $34.7 million, up 191% over the same period last year and up 29% from the previous quarter.

Included in first fiscal quarter results was a record $26.8 million in royalties Not to be confused with Royal family.

Royalties (sometimes, running royalties) are usage-based payments made by one party (the "licensee") to another (the "licensor") for ongoing use of an asset, most typically an intellectual property (IP) right.
, more than ten times the amount reported in the same period last year and up 35% from the previous quarter. The quarter's results included the initial royalties from Samsung and Mitsubishi Mitsubishi: see zaibatsu.  for use of Rambus patents in SDRAMs, DDR SDRAMs See DDR.  and controllers that connect to them (SDRAM-compatible ICs).

Contract revenue for the first fiscal quarter of 2001 was $7.9 million, up from $7.0 million in the previous quarter. Included in the first quarter results was approximately ap·prox·i·mate  
adj.
1. Almost exact or correct: the approximate time of the accident.

2.
 $1.5 million of deferred revenue recognized due to the cancellation cancellation (See: cancel)


CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob.
 of the contract of a licensee licensee n. a person given a license by government or under private agreement. (See: license, licensor)


LICENSEE. One to whom a license has been given. 1 M. Q. & S. 699 n.
 who is reducing activities in the merchant DRAM market.

Excluding acquisition-related costs, pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts.

The phrase pro forma
 operating income Operating Income

The profit realized from a business' own operations.

Notes:
This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit.
 for the first fiscal quarter was $19.9 million (57% of revenues), compared to $2.9 million (25% of revenues) in the same period last year and $14.5 million (54% of revenues) in the previous quarter.

Because of the Company's substantially increased level of profitability and limited tax reduction opportunities, the tax rate for fiscal 2000 has been increased to 40% from 35% last year. Based on this tax rate, and excluding acquisition-related costs, first quarter pro forma net income was a record $13.2 million ($0.12 per diluted di·lute  
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.

2. To lessen the force, strength, purity, or brilliance of, especially by admixture.
 share), more than five times the amount reported in the same period last year and up 29% from the previous quarter. If the previous 35% tax rate were still applicable, the earnings for the quarter would have been higher by $0.01 per share. All per-share numbers have been adjusted for a four-for-one stock split effective June June: see month.  14, 2000.

"Our first fiscal quarter results continue to show the strength of the Rambus business model," said Geoff Tate Geoff Tate (born Jeffrey Wayne Tate, January 14 1959, in Stuttgart, West Germany) is an American singer, best known for his work with the progressive metal band, Queensrÿche. He is regarded as one of the most skilled and versatile vocalists in the heavy metal genre. , CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  of Rambus Inc. "We are pleased with the market reception for both the Sony PlayStation Sony Playstation - Playstation 2 and the Intel Pentium Pentium

Family of microprocessors developed by Intel Corp. Introduced in 1993 as the successor to Intel's 80486 microprocessor, the Pentium contained two processors on a single chip and about 3.3 million transistors.
 4, and we are confident that these products will drive the demand for RDRAM-compatible ICs to higher levels in fiscal 2001. However, we also recognize that an increasing percentage of our revenues is due to royalties on SDRAM-compatible ICs. With the price decrease for SDRAMs in the December quarter, it is unlikely that royalties for these products in our next (March) quarter will exceed the levels included in this report unless we sign additional licensees. In addition, we have moved to larger facilities for long-term Long-term

Three or more years. In the context of accounting, more than 1 year.


long-term

1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term.
 growth and will be incurring in·cur  
tr.v. in·curred, in·cur·ring, in·curs
1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash.

2.
 increased costs in the near term due to the new facilities as well as our continuing vigorous legal defense of our IP."

Rambus Inc. develops and licenses high-bandwidth chip connection technologies to enhance the performance of computers, consumer electronics and communications products. Providers of Rambus-based integrated circuits Integrated circuits

Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1.
 include the world's leading DRAM, ASIC (Application Specific Integrated Circuit) Pronounced "a-sick." A chip that is custom designed for a specific application rather than a general-purpose chip such as a microprocessor.  and PC controller manufacturers.

This release contains forward-looking statements forward-looking statement

A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
 regarding financial results for future periods. Actual results could differ materially. Among the factors which could cause results to differ materially is the possibility that the Pentium 4 and PlayStation A video game console from Sony that was introduced in the U.S. in 1995. CD-ROM based and using a 32-bit MIPS CPU, the original PlayStation was the first of a family of desktop and handheld units. 2 ramps will be slower than expected, that shipment of Rambus ICs and other licensed products by Rambus licensees will be below forecast, that SDRAM (Synchronous DRAM) A type of dynamic RAM (DRAM) memory chip that has been widely used since the late 1990s. SDRAM chips eliminated wait states by dividing the chip into two cell blocks and interleaving data between them.  prices decline further, that no additional licenses for SDRAM-compatible ICs will be signed, that prices of RDRAMs will remain high compared to SDRAMs and that litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.

When a person begins a civil lawsuit, the person enters into a process called litigation.
 and building costs will exceed the Company's plans.

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

                                          Three Months Ended
                                     ------------------------------
                                      Dec. 31,  Sept. 30,  Dec. 31,
                                        2000      2000       1999
                                     --------- ---------- ---------
Revenues:
  Contract revenues                    $ 7,869    $ 6,987   $ 9,319
  Royalties                             26,848     19,921     2,630
                                     --------- ---------- ---------

       Total revenues                   34,717     26,908    11,949
                                     --------- ---------- ---------
Costs and expenses:
  Cost of contract revenues              2,220      2,666     3,501
  Research and development               3,367      3,299     2,111
  Marketing, general & administrative    9,247      6,472     3,399
                                     --------- ---------- ---------

       Total costs and expenses         14,834     12,437     9,011
                                     --------- ---------- ---------

Operating income                        19,883     14,471     2,938
Other income                             2,071      1,254       997
                                     --------- ---------- ---------

Income before income taxes              21,954     15,725     3,935
Provision for income taxes               8,782      5,504     1,377
                                     --------- ---------- ---------

Net income                             $13,172    $10,221  $  2,558
                                     ========= ========== =========

Net income per share - basic           $  0.13    $  0.10  $   0.03
                                     ========= ========== =========

Net income per share - diluted         $  0.12    $  0.09  $   0.03
                                     ========= ========== =========

Shares used in per share calculation:
       Basic                            98,551     98,001    95,038
       Diluted                         108,560    110,049   100,681

1.  Note: Shares and per-share data adjusted for 4:1 stock split
    effective June 14, 2000.

2.  Pro forma income shown above excludes the effect of amortization
    of goodwill and other acquisition-related intangibles of $221K in
    the three months ended 12/31/00, $221K in the three months ended
    9/30/00, and $143K in the three months ended 12/31/99; and a
    one-time tax adjustment of $38 million in the three months ended
    9/30/00.

3.  This pro forma information is not prepared in accordance with
    generally accepted accounting principles.

4.  A reconciliation from pro forma net income to the reported results
    is shown on the next table.


                              RAMBUS INC.
      RECONCILIATION OF PRO FORMA NET INCOME TO REPORTED RESULTS
               (in thousands, except per share amounts)
                              (unaudited)

                                           Three Months Ended
                                      Dec. 31,  Sept. 30,  Dec. 31,
                                        2000      2000       1999
                                     --------- ---------- ---------
Pro forma net income                   $13,172    $10,221    $2,558
Acquisition-related expenses              (221)      (221)     (143)
Tax benefit                                 89         77        50
Tax adjustment                              --     43,548        --
                                     --------- ---------- ---------

    Net income                         $13,040    $53,625    $2,465
                                     ========= ========== =========
Pro forma net income
 per share - basic                      $ 0.13     $ 0.10    $ 0.03
Acquisition-related expenses             (0.00)     (0.00)    (0.00)
Tax adjustment                              --       0.45        --
                                     --------- ---------- ---------

Net income per share - basic            $ 0.13     $ 0.55    $ 0.03
                                     ========= ========== =========

Pro forma net income
 per share - diluted                    $ 0.12     $ 0.09    $ 0.03
Acquisition-related expenses             (0.00)     (0.00)    (0.01)
Tax adjustment                              --       0.40        --
                                     --------- ---------- ---------

Net income per share - diluted          $ 0.12     $ 0.49    $ 0.02
                                     ========= ========== =========

      Note: Per-share data adjusted for 4:1 stock split effective June
14, 2000.

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

                                           Three Months Ended
                                      Dec. 31,  Sept. 30,  Dec. 31,
                                        2000      2000      1999
                                     --------- ---------- ---------
Revenues:
  Contract revenues                    $ 7,869    $ 6,987   $ 9,319
  Royalties                             26,848     19,921     2,630
                                     --------- ---------- ---------

       Total revenues                   34,717     26,908    11,949
                                     --------- ---------- ---------
Costs and expenses:
  Cost of contract revenues              2,220      2,666     3,531
  Research and development               3,588      3,520     2,224
  Marketing, general & administrative    9,247      6,472     3,399
                                     --------- ---------- ---------

       Total costs and expenses         15,055     12,658     9,154
                                     --------- ---------- ---------

Operating income                        19,662     14,250     2,795
Other income                             2,071      1,254       997
                                     --------- ---------- ---------

Income before income taxes              21,733     15,504     3,792
Provision for income taxes (benefit)     8,693    (38,121)    1,327
                                     --------- ---------- ---------

Net income                            $ 13,040   $ 53,625   $ 2,465
                                     ========= ========== =========

Net income per share - basic          $   0.13   $   0.55   $  0.03
                                     ========= ========== =========

Net income per share - diluted        $   0.12   $   0.49   $  0.02
                                     ========= ========== =========

Shares used in per share calculation:
          Basic                         98,551     98,001    95,038
          Diluted                      108,560    110,049   100,681

      Note: Shares and per-share data adjusted for 4:1 stock split
effective June 14, 2000.

                              RAMBUS INC.
                      CONSOLIDATED BALANCE SHEETS
                            (in thousands)

                                      Dec. 31,  Sept. 30,  Dec. 31,
                                        2000      2000       1999
                                     --------- ---------- ---------
                                    (unaudited)          (unaudited)
ASSETS
Current assets:
  Cash and cash equivalents          $  71,212  $  63,093  $  5,544
  Marketable securities                 55,507     59,127    82,135
  Accounts receivable                    1,788         68     2,478
  Prepaid and deferred taxes            21,220     17,661     7,423
  Prepaids and other current assets      2,977      2,988     2,244
                                     --------- ---------- ---------

   Total current assets                152,704    142,937    99,824
Property and equipment, net             12,161      6,724     4,029
Marketable securities,
 less current portion                   14,599      7,548     1,509
Restricted cash                          2,773      2,500     2,500
Deferred taxes, long-term               55,404     55,404     3,126
Other assets                             4,071      4,518     2,020
                                     --------- ---------- ---------

Total assets                         $ 241,712  $ 219,631 $ 113,008
                                     ========= ========== =========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable and
   other current liabilities         $  10,312  $  9,032  $   3,561
  Current portion of deferred revenue   21,719    24,155     29,542
                                     --------- ---------- ---------

    Total current liabilities           32,031     33,187    33,103
Deferred revenue, less current portion  24,498     24,122    14,629
                                     --------- ---------- ---------

    Total liabilities                   56,529     57,309    47,732
                                     --------- ---------- ---------
Stockholders' equity:
  Common stock                              98        97         24
  Additional paid-in capital           295,596   285,885     80,563
  Deferred stock-based compensation       (543)     (571)      (719)
  Accumulated deficit                 (110,092) (123,132)   (14,540)
  Accumulated other
   comprehensive gain (loss)               124        43        (52)
                                     --------- ---------- ---------

    Total stockholders' equity         185,183    162,322    65,276
                                     --------- ---------- ---------
Total liabilities
 and stockholders' equity            $ 241,712  $ 219,631 $ 113,008
                                     ========= ========== =========
COPYRIGHT 2001 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:Jan 11, 2001
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