Rambus Reports First Quarter Financial Results

About Rambus Inc.

Rambus is the innovative technology solutions company that brings invention to market. Unleashing the intellectual power of our world-class engineers and scientists in a collaborative and synergistic way, Rambus invents, licenses and develops solutions that challenge and enable our customers to create the future. While best known for creating unsurpassed semiconductor memory architectures, Rambus is also developing world-changing products and services in security, advanced LED lighting and displays, and immersive mobile media. For additional information visit rambus.com.

RMBSFN


Rambus Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited)

	March 31, 2013		December 31, 2012
ASSETS

Current assets:
Cash and cash equivalents	$	157,215	$	148,984
Marketable securities		57,613		54,346
Accounts receivable		60		529
Prepaids and other current assets		9,038		10,529
Deferred taxes		788		788
Total current assets		224,714		215,176
Intangible assets, net		145,930		153,173
Goodwill		124,969		124,969
Property, plant and equipment, net		78,218		86,905
Deferred taxes, long-term		4,806		4,458
Other assets		3,029		3,131
Total assets	$	581,666	$	587,812

LIABILITIES & STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	4,036	$	7,918
Accrued salaries and benefits		31,925		23,992
Accrued litigation expenses		10,256		9,822
Other accrued liabilities		7,954		12,402
Total current liabilities		54,171		54,134
Long-term liabilities:
Convertible notes, long-term		151,487		147,556
Long-term imputed financing obligation		39,685		45,919
Other long-term liabilities		20,526		18,609
Total long-term liabilities		211,698		212,084
Total stockholders’ equity		315,797		321,594
Total liabilities and stockholders’ equity	$	581,666	$	587,812

Rambus Inc. Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)

	Three Months Ended March 31,
		2013			2012
Revenue:
Royalties	$	66,222		$	62,043
Contract revenue		644			820
Total revenue		66,866			62,863
Operating costs and expenses:
Cost of revenue (1)		5,249			7,163
Research and development (1)		32,848			38,394
Marketing, general and administrative (1)		25,105			34,834
Restructuring charges		2,206			—
Costs of restatement and related legal activities		17			30
Total operating costs and expenses		65,425			80,421
Operating income (loss)		1,441			(17,558	)
Interest income and other income (expense), net		(20	)		98
Interest expense		(7,312	)		(6,580	)
Interest and other income (expense), net		(7,332	)		(6,482	)
Loss before income taxes		(5,891	)		(24,040	)
Provision for income taxes		4,511			3,850
Net loss	$	(10,402	)	$	(27,890	)
Net loss per share:
Basic	$	(0.09	)	$	(0.25	)
Diluted	$	(0.09	)	$	(0.25	)

Weighted average shares used in per share calculation
Basic		111,599			110,358
Diluted		111,599			110,358

(1) Total stock-based compensation expense for the three month periods ended March 31, 2013 and 2012 are presented as follows:

	Three Months Ended March 31,
		2013			2012
Cost of revenue	$	—		$	10
Research and development	$	1,876		$	2,720
Marketing, general and administrative	$	3,072		$	3,996

Rambus Inc. Supplemental Reconciliation of GAAP to Non-GAAP Results (In thousands) (Unaudited)

	Three Months Ended
	March 31, 2013			December 31, 2012			March 31, 2012

Revenue	$	66,866		$	57,443		$	62,863
Adjustments:
Other patent royalties received		5,237			4,175			2,414
Total customer licensing income	$	72,103		$	61,618		$	65,277

Operating costs and expenses	$	65,425		$	61,470		$	80,421
Adjustments:
Other patent royalties received		1,285			—			—
Stock-based compensation		(4,948	)		(4,516	)		(6,726	)
Acquisition-related transaction costs and retention bonuses		(4,012	)		(4,191	)		(9,351	)
Amortization		(7,040	)		(6,811	)		(7,616	)
Restructuring charges		(2,206	)		(679	)		—
Severance costs		(514	)		—			—
Costs of restatement and related legal activities		(17	)		(52	)		(30	)
Non-GAAP operating costs and expenses	$	47,973		$	45,221		$	56,698

Operating income (loss)	$	1,441		$	(4,027	)	$	(17,558	)
Adjustments:
Other patent royalties received		3,952			4,175			2,414
Stock-based compensation		4,948			4,516			6,726
Acquisition-related transaction costs and retention bonuses		4,012			4,191			9,351
Amortization		7,040			6,811			7,616
Restructuring charges		2,206			679			—
Severance costs		514			—			—
Costs of restatement and related legal activities		17			52			30
Non-GAAP operating income	$	24,130		$	16,397		$	8,579

Loss before income taxes	$	(5,891	)	$	(11,233	)	$	(24,040	)
Adjustments:
Other patent royalties received		3,952			4,175			2,414
Stock-based compensation		4,948			4,516			6,726
Acquisition-related transaction costs and retention bonuses		4,012			4,191			9,351
Amortization		7,040			6,811			7,616
Restructuring charges		2,206			679			—
Severance costs		514			—			—
Costs of restatement and related legal activities		17			52			30
Non-cash interest expense on convertible notes		4,089			3,839			3,510
Non-GAAP income before income taxes	$	20,887		$	13,030		$	5,607
Non-GAAP provision for income taxes		7,519			4,691			2,019
Non-GAAP net income	$	13,368		$	8,339		$	3,588

Non-GAAP basic net income per share	$	0.12		$	0.07		$	0.03
Non-GAAP diluted net income per share	$	0.11		$	0.07		$	0.03
Weighted average shares used in non-GAAP per share calculation:
Basic		111,599			111,332			110,358
Diluted		118,021			118,022			115,717

« Previous Page 1 | 2 | 3 | 4 Next Page »