Rambus(US:RMBS)2025-04-29 20:04Revenue Performance - Record quarterly product revenue of $76.3 million in Q1 2025, an increase of approximately 52% compared to Q1 2024[94] - Total revenue for Q1 2025 was $166.7 million, representing a 41.4% increase from $117.9 million in Q1 2024[110] - Royalties revenue increased by approximately $26.5 million in Q1 2025, primarily due to the timing and structure of license agreements[113] - Product revenue accounted for 46% of consolidated revenue in Q1 2025, up from 43% in Q1 2024[97] - Royalties revenue represented 44% of consolidated revenue in Q1 2025, compared to 40% in Q1 2024[98] - Contract and other revenue decreased to 10% of consolidated revenue in Q1 2025, down from 17% in Q1 2024[99] - The company expects revenue from international customers to continue representing a significant portion of total revenue, accounting for approximately 84% in Q1 2025[107] - The top five customers represented approximately 71% of consolidated revenue in Q1 2025, up from 64% in Q1 2024[106] Expenses - Total research and development expenses increased by approximately $5.3 million in Q1 2025, driven by payroll-related expenses and headcount growth[102] - For the three months ended March 31, 2025, total research and development expenses increased to $42.6 million, a 14.1% increase from $37.3 million in the same period of 2024[121] - Research and development expenses, excluding stock-based compensation, rose to $38.1 million, reflecting a 12.4% increase from $33.9 million in the prior year[121] - Total sales, general and administrative expenses for the three months ended March 31, 2025, increased to $28.0 million, an 8.6% increase from $25.8 million in 2024[124] Tax and Cash Flow - The provision for income taxes for the three months ended March 31, 2025, was $7.3 million, a significant increase of 403.4% compared to $1.5 million in 2024[133] - Cash and cash equivalents as of March 31, 2025, were $132.2 million, up from $99.8 million as of December 31, 2024[137] - Net cash provided by operating activities for the three months ended March 31, 2025, was $77.4 million, compared to $39.1 million in the same period of 2024[138] - Cash used in investing activities for the three months ended March 31, 2025, was $8.4 million, primarily due to purchases of available-for-sale marketable securities[145] - Cash used in financing activities for the three months ended March 31, 2025, was $36.8 million, mainly due to $30.8 million in payments of taxes on restricted stock units[147] Amortization and Liabilities - Total amortization of acquired intangible assets decreased to $1.7 million for the three months ended March 31, 2025, down 47.3% from $3.3 million in 2024[127] - The change in fair value of earn-out liability was $0 for the three months ended March 31, 2025, compared to an expense of $0.7 million in the same period of 2024[129] - As of March 31, 2025, the total contractual obligations amounted to $17.255 million, with $7.428 million due in the remainder of 2025[149] - The company has unrecognized tax benefits of approximately $138.3 million, including $23.2 million recorded as a reduction of long-term deferred tax assets[149] Share Repurchase and Investments - During the three months ended March 31, 2024, the company repurchased approximately 0.8 million shares for approximately $50.8 million under the 2020 Repurchase Program[152] - As of March 31, 2025, there remained an outstanding authorization to repurchase approximately 5.6 million shares of common stock under the 2020 Repurchase Program[152] - The investment portfolio of fixed income marketable securities was valued at $408.5 million as of March 31, 2025[159] - If market interest rates were to increase by 1.0%, the fair value of the investment portfolio would decline by approximately $2.2 million[159] Currency and Contracts - The company invoices the majority of its customers in U.S. dollars and does not hedge indirect currency exchange risks[160] - As of March 31, 2025, no foreign currency forward contracts were outstanding, and none were entered into during 2025[161]