(1) | Includes amortization of acquired intangible assets of approximately $0.2 million and $1.1 million for the three months ended June 30, 2020 and 2019, respectively. |
Quarterly Financial Review - Non-GAAP (including operational metric) (1) | Three Months Ended
| ||||||
(In millions) | 2020 |
| 2019 | ||||
Licensing billings (2) | $ | 60.7 |
|
| $ | 64.9 |
|
Product revenue | $ | 31.7 |
|
| $ | 16.0 |
|
Contract and other revenue | $ | 11.2 |
|
| $ | 15.2 |
|
Cost of product revenue | $ | 10.3 |
|
| $ | 6.3 |
|
Cost of contract and other revenue | $ | 1.5 |
|
| $ | 2.9 |
|
Total operating expenses | $ | 47.7 |
|
| $ | 54.9 |
|
Interest and other income (expense), net | $ | 0.1 |
|
| $ | 0.9 |
|
Diluted share count | 115 |
|
| 113 |
| ||
(1) | See "Supplemental Reconciliation of GAAP to Non-GAAP Results" table included below. Note that the applicable non-GAAP measures are presented and that revenue, cost of product revenue and cost of contract and other revenue are solely presented on a GAAP basis. |
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|
|
(2) | Licensing billings is an operational metric that reflects amounts invoiced to our licensing customers during the period, as adjusted for certain differences. |
GAAP revenue for the quarter was $59.9 million, at the high end of expectations due to the Company's strong performance in its memory interface chip business. The Company also had licensing billings of $60.7 million, product revenue of $31.7 million, and contract and other revenue of $11.2 million. Rambus had total GAAP cost of revenue of $16.1 million and operating expenses of $56.2 million. The Company also had total non-GAAP operating expenses of $59.5 million (which includes non-GAAP cost of revenue), below the low end of its expectations through its cost management actions. Due to the Company's strong performance and cost management actions, its revenue and profit were at the high end of its expectations. The Company had GAAP diluted net loss per share of $0.09. The Company's basic share count was 114 million shares and its diluted share count would have been 115 million shares.
Cash, cash equivalents, and marketable securities as of June 30, 2020 were $486.1 million, an increase of $50.7 million from March 31, 2020, mainly due to $62.0 million in cash provided by operating activities, the highest quarterly cash generation in over 10 years.
2020 Third Quarter Outlook
The Company will discuss its full revenue guidance for the third quarter of 2020 during its upcoming conference call. The following table sets forth third quarter outlook for other measures.
(In millions) | GAAP |
| Non-GAAP (1) |
Licensing billings (2) | $55 - $61 |
| $55 - $61 |
Product revenue | $29 - $35 |
| $29 - $35 |
Contract and other revenue | $10 - $16 |
| $10 - $16 |
Total operating costs and expenses | $76 - $72 |
| $64 - $60 |
| Interest and other income (expense), net | $2 |
| $0 |
| Diluted share count | 116 |
| 116 |
