Rambus Reports Third Quarter 2019 Financial Results

November 5, 2019

SUNNYVALE, Calif., Nov. 5, 2019 — Rambus Inc. today reported financial results for the third quarter ended September 30, 2019. Total revenue for the third quarter was above expectations at $57.4 million; licensing billings were $63.1 million, product revenue was $21.4 million, and contract and other revenue was $16.6 million. The Company also generated $25.6 million in cash provided by operating activities in the third quarter of 2019. The Company has generated $93.1 million in cash provided by operating activities through the nine months ended September 30, 2019, greater than what was generated during the full fiscal year of 2018.

“Rambus delivered a great third quarter. We made tremendous progress toward the strategic objectives critical to our future and successfully realigned the Company around our core strengths in semiconductor,” said Luc Seraphin, chief executive officer of Rambus. “With record revenue from our memory interface chip business and continued silicon IP design wins at tier-one SoC customers, we exceeded our commitments to the market.”

Business Review

Consistent with the Company’s areas of focus and mission to deliver data faster and safer, Rambus completed a number of significant M&A activities over the course of the third quarter. The Company closed the sale of its payments and ticketing business to Visa, redefining its perimeter in the semiconductor market. Rambus also announced two silicon IP acquisitions to enhance its offerings and amplify its market position in interfaces and security for data center, artificial intelligence (AI), automotive and government. The first was the completed acquisition of digital controller company, Northwest Logic, and the second was an agreement to acquire the secure silicon IP and protocols businesses of Verimatrix, formerly Inside Secure, which we expect to close by the end of the year.

Rambus continued to drive sustained silicon IP revenue growth with key design wins for both its interface and security IP solutions. The Company closed four tier-1 SoC design wins across the portfolio for data center, edge, IoT and government and announced a combined interface and security IP win at SEAKR for aerospace and satellite communications. The team expanded its portfolio with leading-edge interface solutions for GDDR6, HBM2 and 112G to deliver the critical building blocks for AI, data center, 5G and automotive. And finally, Rambus announced the industry’s fastest complete memory subsystem solution for GDDR6, including the PHY and controller, capable of running at 18 Gbps to meet the demands of performance-intensive applications.

Finally, the Company’s memory interface chip business achieved a second consecutive quarter of record revenue and is on track to almost double year over year. This is driven by increased OEM and data center qualifications, leading to steady gains in DDR4 memory interface chip market share. The Company also remains well positioned as a first mover for the industry transition to DDR5.

Quarterly Financial Review – GAAP

Three Months Ended
September 30,

(In millions, except for percentages and per share amounts)

2019

2018

Revenue

Royalties

$

19.4

$

33.6

Product revenue

21.4

11.8

Contract and other revenue

16.6

14.4

Total revenue

$

57.4

$

59.8

Total operating costs and expenses

$

80.3

$

78.9

Operating loss

$

(22.9

)

$

(19.1

)

Operating margin

(40

)%

(32

)%

Net loss

$

(17.3

)

$

(104.9

)

Diluted net loss per share

$

(0.16

)

$

(0.97

)

Net cash provided by operating activities

$

25.6

$

31.6

Quarterly Financial Review – Non-GAAP (including operational metric) (1)

Three Months Ended
September 30,

(In millions)

2019

2018

Licensing billings (2)

$

63.1

$

75.4

Product revenue

$

21.4

$

11.8

Contract and other revenue

$

16.6

$

14.4

Total operating costs and expenses

$

67.1

$

67.6

Interest and other income (expense), net

$

6.0

$

6.2

Diluted share count

114

110

(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 is solely presented on a GAAP basis.

(2)

Licensing billings is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences.

Revenue for the quarter was $57.4 million, with licensing billings of $63.1 million, product revenue of $21.4 million, and contract and other revenue of $16.6 million. We had GAAP total operating costs and expenses of $80.3 million. We also had non-GAAP total operating costs and expenses of $67.1 million, above the high end of our guidance due to higher cost of product revenue related to increased buffer chip sales. We also recorded $5.1 million in revenue and $6.8 million in operating costs and expenses associated with our payments and ticketing business in the third quarter. We had GAAP diluted net loss per share of $0.16. Our basic share count was 111 million shares and our diluted share count would have been 114 million shares.

Cash, cash equivalents, and marketable securities as of September 30, 2019 were $338.0 million, which was flat as compared to June 30, 2019, mainly due to $25.6 million in cash provided by operating activities, offset by $21.9 million in cash paid for the acquisition of Northwest Logic. Cash provided by operating activities for the nine months ended September 30, 2019 was $93.1 million, an increase of $41.0 million from the same period in the prior year.

2019 Fourth Quarter Outlook

The Company will discuss its full revenue guidance for the fourth quarter of 2019 during its upcoming conference call. The following table sets forth fourth quarter outlook for other measures and excludes our Payments and Ticketing business which was sold to Visa in the fourth quarter of 2019.

(In millions)

GAAP

Non-GAAP (1)

Licensing billings (2)

$60 – $66

$60 – $66

Product revenue

$19 – $25

$19 – $25

Contract and other revenue

$10 – $16

$10 – $16

Total operating costs and expenses

$74 – $70

$63 – $59

Interest and other income (expense), net

$4

$1

Diluted share count

115

115

(1)

See “Reconciliation of GAAP Forward Looking Estimates to Non-GAAP Forward Looking Estimates” tables included below. Note that the applicable non-GAAP measures are presented, and that revenue is solely presented on a GAAP basis.

(2)

Licensing billings is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences. This metric is the same for both GAAP and non-GAAP presentations.

For the fourth quarter of 2019, the Company expects licensing billings to be between $60 million and $66 million. The Company also expects royalty revenue to be between $15 million and $21 million, product revenue to be between $19 million and $25 million and contract and other revenue to be between $10 million and $16 million. Revenue is not without risk and achieving revenue in this range will require that the Company sign customer agreements for various product sales, solutions licensing among other matters.

The Company also expects operating costs and expenses to be between $74 million and $70 million. Additionally, the Company expects non-GAAP operating costs and expenses to be between $63 million and $59 million. These expectations also assume non-GAAP interest and other income (expense), net, of $1 million, tax rate of 24% (refer to non-GAAP financial information below – income tax adjustments) and diluted share count of 115 million, and exclude stock-based compensation expense ($7 million), amortization expense ($3 million), non-cash interest expense on convertible notes ($2 million) and interest income related to the significant financing component from fixed-fee patent and technology licensing arrangements ($5 million).

About Rambus Inc.

Rambus is a premier Silicon IP and chip provider that makes data faster and safer. With 30 years of innovation, we continue to develop the foundational technology for all modern computing systems. Leveraging our semiconductor expertise, Rambus solutions speed performance, expand capacity and improve security for today’s most demanding applications. From data center and edge to artificial intelligence and automotive, our interface and security IP, and memory interface chips enable SoC and system designers to deliver their vision of the future. For more information, visit rambus.com.


Source:  Rambus 

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

Supercomputer Research Reveals Star Cluster Born Outside Our Galaxy

July 11, 2020

The Milky Way is our galactic home, containing our solar system and continuing into a giant band of densely packed stars that stretches across clear night skies around the world – but, it turns out, not all of those st Read more…

By Oliver Peckham

Max Planck Society Begins Installation of Liquid-Cooled Supercomputer from Lenovo

July 9, 2020

Lenovo announced today that it is supplying a new high performance computer to the Max Planck Society, one of Germany's premier research organizations. Comprised of Intel Xeon processors and Nvidia A100 GPUs, and featuri Read more…

By Tiffany Trader

Xilinx Announces First Adaptive Computing Challenge

July 9, 2020

A new contest is challenging the computing world. Xilinx has announced the first Xilinx Adaptive Computing Challenge, a competition that will task developers and startups with finding creative workload acceleration solutions. Xilinx is running the Adaptive Computing Challenge in partnership with Hackster.io, a developing community... Read more…

By Staff report

Reviving Moore’s Law? LBNL Researchers See Promise in Heterostructure Oxides

July 9, 2020

The reality of Moore’s law’s decline is no longer doubted for good empirical reasons. That said, never say never. Recent work by Lawrence Berkeley National Laboratory researchers suggests heterostructure oxides may b Read more…

By John Russell

President’s Council Targets AI, Quantum, STEM; Recommends Spending Growth

July 9, 2020

Last week the President Council of Advisors on Science and Technology (PCAST) met (webinar) to review policy recommendations around three sub-committee reports: 1) Industries of the Future (IotF), chaired be Dario Gil (d Read more…

By John Russell

AWS Solution Channel

Best Practices for Running Computational Fluid Dynamics (CFD) Workloads on AWS

The scalable nature and variable demand of CFD workloads makes them well-suited for a cloud computing environment. Many of the AWS instance types, such as the compute family instance types, are designed to include support for this type of workload.  Read more…

Intel® HPC + AI Pavilion

Supercomputing the Pandemic: Scientific Community Tackles COVID-19 from Multiple Perspectives

Since their inception, supercomputers have taken on the biggest, most complex, and most data-intensive computing challenges—from confirming Einstein’s theories about gravitational waves to predicting the impacts of climate change. Read more…

Penguin Computing Brings Cascade Lake-AP to OCP Form Factor

July 7, 2020

Penguin Computing, a subsidiary of SMART Global Holdings, Inc., announced yesterday (July 6) a new Tundra server, Tundra AP, that is the first to implement the Intel Xeon Scalable 9200 series processors (codenamed Cascad Read more…

By Tiffany Trader

Max Planck Society Begins Installation of Liquid-Cooled Supercomputer from Lenovo

July 9, 2020

Lenovo announced today that it is supplying a new high performance computer to the Max Planck Society, one of Germany's premier research organizations. Comprise Read more…

By Tiffany Trader

President’s Council Targets AI, Quantum, STEM; Recommends Spending Growth

July 9, 2020

Last week the President Council of Advisors on Science and Technology (PCAST) met (webinar) to review policy recommendations around three sub-committee reports: Read more…

By John Russell

Google Cloud Debuts 16-GPU Ampere A100 Instances

July 7, 2020

On the heels of the Nvidia’s Ampere A100 GPU launch in May, Google Cloud is announcing alpha availability of the A100 “Accelerator Optimized” VM A2 instance family on Google Compute Engine. The instances are powered by the HGX A100 16-GPU platform, which combines two HGX A100 8-GPU baseboards using... Read more…

By Tiffany Trader

Q&A: HLRS’s Bastian Koller Tackles HPC and Industry in Germany and Europe

July 6, 2020

In this exclusive interview for HPCwire – sadly not face to face – Steve Conway, senior advisor for Hyperion Research, talks with Dr.-Ing Bastian Koller about the state of HPC and its collaboration with Industry in Europe. Koller is a familiar figure in HPC. He is the managing director at High Performance Computing Center Stuttgart (HLRS) and also serves... Read more…

By Steve Conway, Hyperion

OpenPOWER Reboot – New Director, New Silicon Partners, Leveraging Linux Foundation Connections

July 2, 2020

Earlier this week the OpenPOWER Foundation announced the contribution of IBM’s A21 Power processor core design to the open source community. Roughly this time Read more…

By John Russell

Hyperion Forecast – Headwinds in 2020 Won’t Stifle Cloud HPC Adoption or Arm’s Rise

June 30, 2020

The semiannual taking of HPC’s pulse by Hyperion Research – late fall at SC and early summer at ISC – is a much-watched indicator of things come. This yea Read more…

By John Russell

Racism and HPC: a Special Podcast

June 29, 2020

Promoting greater diversity in HPC is a much-discussed goal and ostensibly a long-sought goal in HPC. Yet it seems clear HPC is far from achieving this goal. Re Read more…

Top500 Trends: Movement on Top, but Record Low Turnover

June 25, 2020

The 55th installment of the Top500 list saw strong activity in the leadership segment with four new systems in the top ten and a crowning achievement from the f Read more…

By Tiffany Trader

Supercomputer Modeling Tests How COVID-19 Spreads in Grocery Stores

April 8, 2020

In the COVID-19 era, many people are treating simple activities like getting gas or groceries with caution as they try to heed social distancing mandates and protect their own health. Still, significant uncertainty surrounds the relative risk of different activities, and conflicting information is prevalent. A team of Finnish researchers set out to address some of these uncertainties by... Read more…

By Oliver Peckham

[email protected] Turns Its Massive Crowdsourced Computer Network Against COVID-19

March 16, 2020

For gamers, fighting against a global crisis is usually pure fantasy – but now, it’s looking more like a reality. As supercomputers around the world spin up Read more…

By Oliver Peckham

[email protected] Rallies a Legion of Computers Against the Coronavirus

March 24, 2020

Last week, we highlighted [email protected], a massive, crowdsourced computer network that has turned its resources against the coronavirus pandemic sweeping the globe – but [email protected] isn’t the only game in town. The internet is buzzing with crowdsourced computing... Read more…

By Oliver Peckham

Supercomputer Simulations Reveal the Fate of the Neanderthals

May 25, 2020

For hundreds of thousands of years, neanderthals roamed the planet, eventually (almost 50,000 years ago) giving way to homo sapiens, which quickly became the do Read more…

By Oliver Peckham

DoE Expands on Role of COVID-19 Supercomputing Consortium

March 25, 2020

After announcing the launch of the COVID-19 High Performance Computing Consortium on Sunday, the Department of Energy yesterday provided more details on its sco Read more…

By John Russell

Honeywell’s Big Bet on Trapped Ion Quantum Computing

April 7, 2020

Honeywell doesn’t spring to mind when thinking of quantum computing pioneers, but a decade ago the high-tech conglomerate better known for its control systems waded deliberately into the then calmer quantum computing (QC) waters. Fast forward to March when Honeywell announced plans to introduce an ion trap-based quantum computer whose ‘performance’ would... Read more…

By John Russell

Neocortex Will Be First-of-Its-Kind 800,000-Core AI Supercomputer

June 9, 2020

Pittsburgh Supercomputing Center (PSC - a joint research organization of Carnegie Mellon University and the University of Pittsburgh) has won a $5 million award Read more…

By Tiffany Trader

Global Supercomputing Is Mobilizing Against COVID-19

March 12, 2020

Tech has been taking some heavy losses from the coronavirus pandemic. Global supply chains have been disrupted, virtually every major tech conference taking place over the next few months has been canceled... Read more…

By Oliver Peckham

Leading Solution Providers

Contributors

Nvidia’s Ampere A100 GPU: Up to 2.5X the HPC, 20X the AI

May 14, 2020

Nvidia's first Ampere-based graphics card, the A100 GPU, packs a whopping 54 billion transistors on 826mm2 of silicon, making it the world's largest seven-nanom Read more…

By Tiffany Trader

10nm, 7nm, 5nm…. Should the Chip Nanometer Metric Be Replaced?

June 1, 2020

The biggest cool factor in server chips is the nanometer. AMD beating Intel to a CPU built on a 7nm process node* – with 5nm and 3nm on the way – has been i Read more…

By Doug Black

‘Billion Molecules Against COVID-19’ Challenge to Launch with Massive Supercomputing Support

April 22, 2020

Around the world, supercomputing centers have spun up and opened their doors for COVID-19 research in what may be the most unified supercomputing effort in hist Read more…

By Oliver Peckham

Australian Researchers Break All-Time Internet Speed Record

May 26, 2020

If you’ve been stuck at home for the last few months, you’ve probably become more attuned to the quality (or lack thereof) of your internet connection. Even Read more…

By Oliver Peckham

15 Slides on Programming Aurora and Exascale Systems

May 7, 2020

Sometime in 2021, Aurora, the first planned U.S. exascale system, is scheduled to be fired up at Argonne National Laboratory. Cray (now HPE) and Intel are the k Read more…

By John Russell

Summit Supercomputer is Already Making its Mark on Science

September 20, 2018

Summit, now the fastest supercomputer in the world, is quickly making its mark in science – five of the six finalists just announced for the prestigious 2018 Read more…

By John Russell

TACC Supercomputers Run Simulations Illuminating COVID-19, DNA Replication

March 19, 2020

As supercomputers around the world spin up to combat the coronavirus, the Texas Advanced Computing Center (TACC) is announcing results that may help to illumina Read more…

By Staff report

$100B Plan Submitted for Massive Remake and Expansion of NSF

May 27, 2020

Legislation to reshape, expand - and rename - the National Science Foundation has been submitted in both the U.S. House and Senate. The proposal, which seems to Read more…

By John Russell

  • arrow
  • Click Here for More Headlines
  • arrow
Do NOT follow this link or you will be banned from the site!
Share This