- Excellent quarter, at the high end of expectations for revenue and profit
SAN JOSE, Calif., Aug. 3, 2020 — (PRNewswire) — Rambus Inc. (NASDAQ: RMBS), a premier silicon IP and chip provider making data faster and safer, today reported financial results for the second quarter ended June 30, 2020. GAAP revenue for the second quarter was $59.9 million; licensing billings were $60.7 million, product revenue was $31.7 million, and contract and other revenue was $11.2 million. The Company also generated $62.0 million in cash provided by operating activities.
"Rambus had a superb second quarter with cash generated from operations at a 10-year high and our chip business delivering its fifth consecutive quarter of record revenue," said Luc Seraphin, chief executive officer of Rambus. "This tremendous performance was enabled by our sustained focus on quality and execution, demonstrating our ability to consistently deliver."
Business Review
The need for increased bandwidth, capacity and security across all data-centric applications continues to create strong sustained demand for products and solutions that improve the performance of the global data infrastructure and drive Rambus growth.
The Company's memory interface chip business continued its growth trajectory, with a fifth consecutive quarter of record revenue. This performance was driven by a combination of increased data center and OEM qualifications, and an overall increase in market demand. With the recent industry publication of the DDR5 memory specification, Rambus remains poised as a market leader to support our customers' next-generation systems.
The Rambus Silicon IP business maintained its momentum with design wins for interface and security IP at tier-1 SoC makers across data center, AI and 5G. With the availability of the cutting-edge 112G XSR SerDes for chiplets and co-packaged optics, the Company continues to deliver solutions that enable leading-edge architectures and capabilities for high-performance systems.
Quarterly Financial Review - GAAP | Three Months Ended
| ||||||
(In millions, except for percentages and per share amounts) | 2020 |
| 2019 | ||||
Revenue |
|
|
| ||||
Royalties | $ | 17.0 |
|
| $ | 27.1 |
|
Product revenue | 31.7 |
|
| 16.0 |
| ||
Contract and other revenue | 11.2 |
|
| 15.2 |
| ||
Total revenue | $ | 59.9 |
|
| $ | 58.3 |
|
Cost of product revenue | $ | 10.3 |
|
| $ | 6.3 |
|
Cost of contract and other revenue | $ | 1.5 |
|
| $ | 2.9 |
|
Amortization of acquired intangible assets (included in total cost of revenue) | $ | 4.3 |
|
| $ | 3.8 |
|
Total operating expenses (1) | $ | 56.2 |
|
| $ | 82.3 |
|
| Operating loss | $ | (12.5) |
|
| $ | (37.0) |
|
| Operating margin | (21) | % |
| 64 | % | ||
| Net loss | $ | (10.8) |
|
| $ | (37.0) |
|
| Diluted net loss per share | $ | (0.09) |
|
| $ | (0.33) |
|
| Net cash provided by operating activities | $ | 62.0 |
|
| $ | 38.7 |
|
