Press release
Rambus Reports Third Quarter 2020 Financial Results
- Strong quarter, delivering on revenue, exceeding expectations for profit and generating $44.1 million in cash provided by operating activities - Memory
About this update from Rambus, Inc.
[{"type":"text","content":"- Strong quarter, delivering on revenue, exceeding expectations for profit and generating $44.1 million in cash provided by operating activities\n - Memory interface chip quarterly revenue up 39% year over year; on track for over 50% full-year growth\n - Micron DRAM license extended for an additional 4 years\n - New stock repurchase program authorizes repurchase of 20 million shares\n\n\nSAN JOSE, Calif., Nov. 2, 2020 /PRNewswire/ -- Rambus Inc. (NASDAQ:RMBS), a premier silicon IP and chip provider making data faster and safer, today reported financial results for the third quarter ended September 30, 2020. GAAP revenue for the third quarter was $56.9 million; licensing billings were $63.1 million, product revenue was $29.8 million, and contract and other revenue was $10.5 million. The Company also generated $44.1 million in cash provided by operating activities. \n\n \n \n \n \n \n \n\n \n\"With our sustained focus on cloud and data center markets, Rambus had a very solid third quarter driven by great execution across our businesses,\" said Luc Seraphin, chief executive officer of Rambus. \"Our proven track record of cash generation and ability to deliver on revenue and profit makes us well positioned for strong top-line growth in 2021.\"\nBusiness Review\nThe Company's memory interface chip business had a solid quarter, continuing to significantly outpace market growth with a 39% increase in quarterly revenue year over year. This growth is driven by ongoing increases in market share in DDR4 and continued demand in cloud and data center. For the industry transition to DDR5, Rambus is in a leading position for qualification with the memory ecosystem and CPU partners in next-generation systems. \nGrowing complexity in SoC design across data center, AI and 5G markets continues to drive customer engagement for the Rambus Silicon IP business, with an increasing number of design wins in interface and security IP. Designed to meet the needs of the most demanding data center AI/ML workloads, Rambus leads the industry with the fastest, silicon-demonstrated HBM2E memory interface solution capable of running up to 4 Gbps. \nLastly, Rambus extended its DRAM license agreement with Micron for an additional four years. The extension maintains the existing financial terms of the agreement, providing Micron with a license to the Company's exten...