Rambus Reports Fourth Quarter and Fiscal Year 2017 Financial Results

  • Annual revenue of $393.1 million, up 17% year over year; fourth quarter revenue of $101.9 million, up 4% year over year
  • Fourth quarter GAAP diluted net loss per share of $0.29; fourth quarter non-GAAP diluted net income per share of $0.19
  • Annual royalty revenue of $289.6 million and licensing billings of $289.6 million; fourth quarter royalty revenue of $77.9 million and licensing billings of $76.6 million
  • CryptoManager IoT Security Service selected by Cybertrust Japan, a subsidiary of Softbank Technology Corp
  • Launched GDDR6 PHY to deliver comprehensive solution with Micron, Northwest Logic and Avery Design for AI, Automotive and Networking

SUNNYVALE, Calif. — (BUSINESS WIRE) — January 29, 2018 — Rambus Inc. (NASDAQ: RMBS) today reported financial results for the fourth quarter ended December 31, 2017. Total revenue for the quarter was $101.9 million, 4% higher than a year ago, with GAAP diluted net loss per share of $0.29 and non-GAAP diluted net income per share of $0.19. Total revenue for the year ended December 31, 2017 was $393.1 million, 17% higher than a year ago.

“Rambus has transitioned to focus on two key high-growth markets - the data center and the mobile edge - with a product roadmap that leverages our core competencies and key ingredient technologies to both differentiate and accelerate our position in complementary markets,” said Dr. Ron Black, chief executive officer of Rambus. “Our progress throughout 2017, with strong execution on key product programs, positions us well to deliver growth in 2018.”

Business Review

The Rambus Memory and Interface division augmented its suite of IP cores for the data center throughout the year with the announcements of 56G SerDes and High Bandwidth Memory Gen2 (HBM2) PHYs as part of our broad portfolio for data center and networking. In addition, the team announced the GDDR6 Memory PHY for Artificial Intelligence (AI), automotive and networking, with a comprehensive solution to be offered in conjunction with Micron, Northwest Logic and Avery Designs. Our chip product offering grew with the launch of the DDR4 non-volatile DIMM (NVDIMM) buffer chip and the industry’s first functional silicon of a server DIMM buffer chipset capable of achieving the speeds expected for next-generation DDR5.

Our Security division, which consists of our cryptography, mobile payments and smart ticketing businesses, extended its product and service portfolio with the launch of our Host Card Emulation (HCE) Ticket Wallet Service and white-label mobile application, the Unified Payment Platform, bringing bank-level security to retail “scan-and-go”, and the CryptoManager IoT Security Service, protecting and monitoring IoT endpoints. We continue to gain commercial traction across our products and services with committed transport pilots and retail deployments, as well as Cybertrust Japan, a subsidiary of Softbank Technology Corp, selecting the CryptoManager IoT Security Service protect their Secure IoT Platform®.

   

Financial Review

GAAP

Non-GAAP(1)

(In millions, except for percentages and per share amounts) Three Months Ended December 31, Three Months Ended December 31,
2017   2016 2017   2016
Revenue $ 101.9 $ 97.6 $ 101.9 $ 97.6
Total operating costs and expenses $ 86.2 $ 97.1 $ 68.4 $ 67.5
Operating income $ 15.7 $ 0.5 $ 33.5 $ 30.1
Operating margin 15

 %

1

 %

33 % 31 %
Net income (loss) $ (31.8 ) $ (3.4 ) $ 21.2 $ 18.7
Diluted net income (loss) per share $ (0.29 ) $ (0.03 ) $ 0.19 $ 0.16
 
Total cash and marketable securities $ 329.4 $ 172.2 $ 329.4 $ 172.2
Total assets $ 884.6 $ 783.5 $ 884.6 $ 783.5
Total stockholders’ equity

$

564.9

$ 552.8 $ 564.9 $ 552.8
 
Cashflows from operations $ 59.8 $ 33.3 $ 59.8 $ 33.3
 
 
Financial Review GAAP Non-GAAP(1)
(In millions, except for percentages and per share amounts) Year Ended December 31, Year Ended December 31,
2017 2016 2017 2016
Revenue $ 393.1 $ 336.6 $ 393.1 $ 336.6
Total operating costs and expenses $ 338.7 $ 303.0 $ 269.1 $ 227.8
Operating income $ 54.4 $ 33.6 $ 124.0 $ 108.8
Operating margin 14

 %

10

 %

32 % 32 %
Net income (loss) $ (18.5 ) $ 6.8 $ 77.5 $ 67.9
Diluted net income (loss) per share $ (0.17 ) $ 0.06 $ 0.68 $ 0.60
 
Cashflows from operations $ 117.4 $ 92.5 $ 117.4 $ 92.5
 
      (1)   See “Supplemental Reconciliation of GAAP to Non-GAAP Results” and “Reconciliation of Other GAAP to Non-GAAP Items” tables included below. Note that the applicable non-GAAP measures are presented and that revenue, the balance sheet items and cashflows from operations are solely presented on a GAAP basis.
 
2017 Revenue and Licensing Billings      
(In thousands) Quarter ended Year ended

December 31,
2017

 

September 30,
2017

June 30,
2017

 

March 31,
2017

December 31,
2017

Revenue
Royalties $ 77,861 $ 72,787 $ 69,990 $ 68,956 $ 289,594
Product revenue 8,543 8,661 8,401 10,904 36,509
Contract and other revenue 15,487   17,686   16,329   17,491   66,993
Total revenue $ 101,891 $ 99,134 $ 94,720 $ 97,351 $ 393,096
 
Licensing billings (1) $ 76,611 $ 71,537 $ 72,890 $ 68,556 $ 289,594
 
2016 Revenue and Licensing Billings      
(In thousands) Quarter ended Year ended

December 31,
2016

 

September 30,
2016

June 30,
2016

 

March 31,
2016

December 31,
2016

Revenue
Royalties $ 70,604 $ 68,298 $ 62,835 $ 62,877 $ 264,614
Product revenue 11,746 7,092 3,902 3,312 26,052
Contract and other revenue 15,209   14,465   9,764   6,493   45,931
Total revenue $ 97,559 $ 89,855 $ 76,501 $ 72,682 $ 336,597
 
Licensing billings (1) $ 64,854 $ 71,548 $ 66,604 $ 61,683 $ 264,689
 
      (1)   Licensing billings is an operational metric that reflects amounts invoiced to our patent and technology licensing customers during the period.
 

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