- Revenue of $97.4 million, up 34% year over year
- GAAP diluted net income per share of $0.03; non-GAAP diluted net income per share of $0.17
- Licensed Western Digital for memory and security innovations
- Launched Unified Payment Platform, extending mobile OEM pay to retailers
SUNNYVALE, Calif. — (BUSINESS WIRE) — April 24, 2017 — Rambus Inc. (NASDAQ: RMBS) today reported financial results for the first quarter ended March 31, 2017. Total revenue for the quarter was $97.4 million, which is 34% higher than a year ago, with GAAP diluted net income per share of $0.03 representing a 50% increase over Q1 of 2016 and non-GAAP diluted net income per share of $0.17 representing a 31% increase over Q1 of 2016.
“We continue to see strong support for our technologies and innovations beyond the traditional DRAM market with the signing of the license agreement with Western Digital for our Flash-based memory designs,” said Dr. Ron Black, chief executive officer of Rambus. “In addition, we introduced our Unified Payment Platform that enhances security, reduces costs for retailers, and delivers a seamless shopping experience for the consumer. Our execution in Q1 sets the foundation for growth for the remainder of 2017.”
Business Review
In our Memory and Interfaces Division, we introduced our High Bandwidth Memory (HBM) PHY solution, available on GLOBALFOUNDRIES process technology, targeting networking and data center applications and designed for systems that require low latency and high bandwidth memory. Also this quarter, as part of a multi-company collaboration, Samsung taped out a 14nm network processor with our high-speed 28G SerDes solution. We also introduced the availability of our industry-leading 56G SerDes PHY and partnered with Samsung to develop it in their latest process technology. These solutions are designed to meet the growing demands of communications and data center applications. Our server DIMM chipset continues to supply the server market, shipping to the key customers in the data center market and we have extended the value of our portfolio beyond the DRAM market with our agreement with Western Digital to utilize our memory and security technologies.
Our Security Division, which consists of our cryptography, mobile payments and smart ticketing groups, had an important quarter with the launch of the Rambus Unified Payment Platform. This platform enhances payment security and reduces costs for retailers by easily integrating payment cards, gift cards, loyalty points, and coupons into a seamless shopping experience for consumers. It securely converts and manages digital value to enable consumers to pay with credit, points and coupons in a single transaction, and transform how they shop and pay.
Finally, our Emerging Solutions Division continues to make exciting progress with the announcement of our expanded collaboration with Microsoft on cryogenic memory. This joint effort focuses on enhancing memory capabilities, reducing energy consumption and improving overall system performance for future high-performance super computers (HPC) and quantum computers operating at cryogenic temperatures.
| Financial Review | GAAP | Non-GAAP(1) | ||||||||||||||
| (In millions, except for percentages and per share amounts) | Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenue | $ | 97.4 | $ | 72.7 | $ | 97.4 | $ | 72.7 | ||||||||
| Total operating costs and expenses | $ | 84.0 | $ | 63.4 | $ | 66.8 | $ | 49.0 | ||||||||
| Operating income | $ | 13.4 | $ | 9.3 | $ | 30.6 | $ | 23.7 | ||||||||
| Operating margin | 14 | % | 13 | % | 31 | % | 33 | % | ||||||||
| Net income | $ | 3.0 | $ | 1.9 | $ | 19.0 | $ | 14.6 | ||||||||
| Diluted net income per share | $ | 0.03 | $ | 0.02 | $ | 0.17 | $ | 0.13 | ||||||||
| Total cash and marketable securities | $ | 187.6 | $ | 225.6 | $ | 187.6 | $ | 225.6 | ||||||||
| Total assets | $ | 826.2 | $ | 752.8 | $ | 826.2 | $ | 752.8 | ||||||||
| Total stockholders’ equity | $ | 601.6 | $ | 534.7 | $ | 601.6 | $ | 534.7 | ||||||||
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(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 and the balance sheet items are solely presented on a GAAP basis. |
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