Rambus Inc (RMBS) Reports Q3 2023 Financial Results
Rambus Inc (NASDAQ:RMBS) reports Q3 2023 GAAP revenue of $105.3 million, with licensing billings at $57.9 million and product revenue at $52.2 million.
The company generated $51.6 million in cash from operations and completed a $100 million accelerated share repurchase program.
Rambus Inc (NASDAQ:RMBS) completed the sale of the PHY IP business, focusing more on chips and digital IP.
The company's net income for Q3 2023 stood at $103.2 million, a significant increase from $0.9 million in Q3 2022.
On October 30, 2023, Rambus Inc (NASDAQ:RMBS), a leading provider of chips and IP making data faster and safer, released its financial results for the third quarter ended September 30, 2023. The company reported strong Q3 results with revenue and earnings above the midpoint of guidance.
Financial Performance
The company's GAAP revenue for the third quarter was $105.3 million, with licensing billings at $57.9 million, product revenue at $52.2 million, and contract and other revenue at $24.2 million. Rambus Inc (NASDAQ:RMBS) also generated $51.6 million in cash provided by operating activities in the third quarter.
According to Luc Seraphin, chief executive officer of Rambus, "Rambus delivered a strong third quarter, as we continue to execute on our strategy, drive the company's long-term profitable growth and consistently return value to our stockholders amidst challenging market conditions."
Financial Review
The company's GAAP revenue for the quarter was $105.3 million, with licensing billings of $57.9 million, product revenue of $52.2 million, and contract and other revenue of $24.2 million. The company had total GAAP cost of revenue of $24.0 million and operating benefits of $(23.6) million. The company also had total non-GAAP operating expenses of $72.9 million (including non-GAAP cost of revenue of $20.5 million).
The company's net income for Q3 2023 stood at $103.2 million, a significant increase from $0.9 million in Q3 2022. This increase was largely driven by a net gain on divestiture of $90.8 million from the sale of the company's PHY IP business in the third quarter.
Financial Outlook
For the fourth quarter of 2023, the company expects licensing billings to be between $56 million and $62 million. The company also expects royalty revenue to be between $42 million and $48 million, product revenue to be between $52 million and $58 million and contract and other revenue to be between $17 million and $23 million.
The company also expects operating costs and expenses to be between $88 million and $84 million. Additionally, the company expects non-GAAP operating costs and expenses to be between $73 million and $69 million.
Overall, Rambus Inc (NASDAQ:RMBS) has shown a strong performance in Q3 2023, with significant increases in revenue and net income. The company's strategic focus on chips and digital IP, along with its successful execution of its share repurchase program, positions it well for future growth.
Explore the complete 8-K earnings release (here) from Rambus Inc for further details.
This article first appeared on GuruFocus.
