Rambus Reports Third Quarter Financial Results

_________

(1) Total stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013 are presented as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Cost of revenue	$	12	$	7	$	34	$	12
Research and development	$	1,648	$	1,630	$	5,574	$	5,166
Marketing, general and administrative	$	1,781	$	1,726	$	5,587	$	6,707



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

	Three Months Ended									Nine Months Ended
	September 30, 2014			June 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013

Operating costs and expenses	$	55,244		$	56,414		$	64,229		$	166,757		$	181,829
Adjustments:
Stock-based compensation expense	(3,441		)	(4,855		)	(3,363		)	(11,195		)	(11,885		)
Acquisition-related transaction costs and retention bonus expense	(6		)	(1,028		)	(1,512		)	(2,469		)	(8,909		)
Amortization expense	(6,741		)	(6,757		)	(7,383		)	(20,295		)	(21,420		)
Reversal of one-time litigation costs	—			—			—			—			8,482
Restructuring charges	—			—			(1,129		)	(39		)	(3,335		)
Impairment of goodwill and long-lived assets	—			—			(8,070		)	—			(8,070		)
Severance costs	—			—			—			—			(514		)
Costs of restatement and related legal activities	—			—			—			—			(19		)
Non-GAAP operating costs and expenses	$	45,056		$	43,774		$	42,772		$	132,759		$	136,159

Operating income	$	14,468		$	20,104		$	9,065		$	57,761		$	16,250
Adjustments:
Stock-based compensation expense	3,441			4,855			3,363			11,195			11,885
Acquisition-related transaction costs and retention bonus expense	6			1,028			1,512			2,469			8,909
Amortization expense	6,741			6,757			7,383			20,295			21,420
Reversal of one-time litigation costs	—			—			—			—			(8,482		)
Restructuring charges	—			—			1,129			39			3,335
Impairment of goodwill and long-lived assets	—			—			8,070			—			8,070
Severance costs	—			—			—			—			514
Costs of restatement and related legal activities	—			—			—			—			19
Non-GAAP operating income	$	24,656		$	32,744		$	30,522		$	91,759		$	61,920

Income (loss) before income taxes	$	10,860		$	11,438		$	579		$	35,574		$	(8,413	)
Adjustments:
Stock-based compensation expense	3,441			4,855			3,363			11,195			11,885
Acquisition-related transaction costs and retention bonus expense	6			1,028			1,512			2,469			8,909
Amortization expense	6,741			6,757			7,383			20,295			21,420
Reversal of one-time litigation costs	—			—			—			—			(8,482		)
Restructuring charges	—			—			1,129			39			3,335
Impairment of goodwill and long-lived assets	—			—			8,070			—			8,070
Severance costs	—			—			—			—			514
Costs of restatement and related legal activities	—			—			—			—			19
Impairment of investment	600			—			—			600			1,400
Non-cash interest expense on convertible notes	1,515			5,469			5,135			13,226			13,369
Non-GAAP income before income taxes	$	23,163		$	29,547		$	27,171		$	83,398		$	52,026
GAAP provision for income taxes	5,347			6,395			6,304			17,214			15,558
Adjustment to GAAP provision for income taxes	2,992			4,242			3,478			12,810			3,171
Non-GAAP provision for income taxes	8,339			10,637			9,782			30,024			18,729
Non-GAAP net income	$	14,824		$	18,910		$	17,389		$	53,374		$	33,297

Non-GAAP basic net income per share	$	0.13		$	0.17		$	0.15		$	0.47		$	0.30
Non-GAAP diluted net income per share	$	0.13		$	0.16		$	0.15		$	0.45		$	0.29
Weighted average shares used in non-GAAP per share calculation:
Basic	114,523			114,116			112,640			114,080			112,144
Diluted	118,206			117,398			116,052			117,540			115,833


Supplemental Reconciliation of GAAP to Non-GAAP Effective Tax Rate (1)

	Three Months Ended						Nine Months Ended
	September 30, 2014		June 30, 2014		September 30, 2013		September 30, 2014		September 30, 2013

GAAP effective tax rate	49	%	56	%	1,089	%	48	%	185	%
Adjustment to GAAP effective tax rate	(13	)%	(20	)%	(1,053	)%	(12	)%	(149	)%
Non-GAAP effective tax rate	36	%	36	%	36	%	36	%	36	%

« Previous Page 1 | 2 | 3 | 4 | 5 Next Page »