- Revenue of $94.7 million, up 24% year over year
- GAAP diluted net income per share of $0.02; non-GAAP diluted net income per share of $0.14
- Secured customer and partnership agreements with industry leaders including: Cybertrust, Synopsys, Google and Interac
- Launched turn-key, secure CryptoManager™ IoT Device Management service and demonstrated with Qualcomm and STMicroelectronics
SUNNYVALE, Calif. — (BUSINESS WIRE) — July 24, 2017 — Rambus Inc. (NASDAQ: RMBS) today reported financial results for the second quarter ended June 30, 2017. Total revenue for the quarter was $94.7 million, 24% higher than a year ago, with GAAP diluted net income per share of $0.02 and non-GAAP diluted net income per share of $0.14. Total revenue for the six months ended June 30, 2017 was $192.1 million, 29% higher than a year ago.
“We continue to build upon our positive start to the year with strength in our patent and technology licensing programs, as well as ongoing validation from our partners and customers that our technologies are solving the critical problems facing the data center and mobile edge markets,” said Dr. Ron Black, chief executive officer of Rambus. “We are excited by the momentum in our Security Division, signing agreements with Cybertrust and Synopsys on our CryptoManager Infrastructure and introducing our in-field CryptoManager IoT Device Management service for easy and broad adoption of our provisioning solutions.”
Business Review
In our Memory and Interfaces Division, we expanded our Server DIMM chipset family with the introduction of the industry’s first production, JEDEC-standard DDR4 Non-volatile Register Clock Driver (NVRCD) for NVDIMM applications in high-performance data centers. The NVRCD chip builds upon our existing high-speed chip and signaling expertise to enable non-volatile server memory modules to combine the performance of DRAM with the persistence of storage-class memory, delivering high performance and reliability of data for next-generation enterprise and data center systems. In addition, we signed key renewals and new agreements for patent and technology licensing, closing our largest ever high-speed interface technology agreement with a large semiconductor company.
Our Security Division, which consists of our cryptography, mobile payments and smart ticketing businesses, had an exciting quarter with the launch of our in-field CryptoManager IoT Device Management service for turnkey secure device connectivity, monitoring and provisioning. The service is designed to work with leading cloud platforms and provides out-of-the-box connectivity to IoT service providers and device manufacturers. As part of the launch at IoT World in Santa Clara, we featured live demonstrations with both Qualcomm and STMicroelectronics processor chips showcasing mutual authentication and communication. In addition, we expanded our ecosystem of CryptoManager Infrastructure customers and partners with the addition of Cybertrust, a subsidiary of SoftBank Technology Corp, and Synopsys. Both accelerate adoption of our security solutions and leverage our CryptoManager Infrastructure for secure key provisioning to enable secure, remote lifecycle management and updates of connected devices.
| Financial Review | GAAP | Non-GAAP(1) | ||||||||||||||
| (In millions, except for percentages and per share amounts) | Three Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenue | $ | 94.7 | $ | 76.5 | $ | 94.7 | $ | 76.5 | ||||||||
| Total operating costs and expenses | $ | 86.5 | $ | 64.5 | $ | 69.3 | $ | 50.5 | ||||||||
| Operating income | $ | 8.2 | $ | 12.0 | $ | 25.4 | $ | 26.0 | ||||||||
| Operating margin | 9 | % | 16 | % | 27 | % | 34 | % | ||||||||
| Net income | $ | 2.6 | $ | 3.9 | $ | 15.6 | $ | 16.7 | ||||||||
| Diluted net income per share | $ | 0.02 | $ | 0.03 | $ | 0.14 | $ | 0.15 | ||||||||
| Total cash and marketable securities | $ | 168.0 | $ | 259.3 | $ | 168.0 | $ | 259.3 | ||||||||
| Total assets | $ | 806.0 | $ | 765.8 | $ | 806.0 | $ | 765.8 | ||||||||
| Total stockholders’ equity | $ | 570.2 | $ | 542.4 | $ | 570.2 | $ | 542.4 | ||||||||
| Financial Review | GAAP | Non-GAAP(1) | ||||||||||||||
| (In millions, except for percentages and per share amounts) | Six Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenue | $ | 192.1 | $ | 149.2 | $ | 192.1 | $ | 149.2 | ||||||||
| Total operating costs and expenses | $ | 170.4 | $ | 127.9 | $ | 136.1 | $ | 99.5 | ||||||||
| Operating income | $ | 21.7 | $ | 21.3 | $ | 56.0 | $ | 49.7 | ||||||||
| Operating margin | 11 | % | 14 | % | 29 | % | 33 | % | ||||||||
| Net income | $ | 5.6 | $ | 5.8 | $ | 34.7 | $ | 31.3 | ||||||||
| Diluted net income per share | $ | 0.05 | $ | 0.05 | $ | 0.30 | $ | 0.28 | ||||||||
| (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. | ||||
