Rambus Reports First Quarter 2021 Financial Results

Restructuring charges. These charges may consist of severance, contractual retention payments, exit costs and other charges and are excluded because such charges are not directly related to ongoing business results and do not reflect expected future operating expenses.

Expense on abandoned operating leases. Reflects the expense on building leases that were abandoned. The Company excludes these charges because such charges are not directly related to ongoing business results and do not reflect expected future operating expenses.

Restatement and shareholder activist costs. These charges consist of costs associated with our restatement of our financial statements and certain shareholder activist costs and are excluded because such charges are not directly related to ongoing business results and do not reflect expected future operating expenses.

Facility restoration costs. These charges consist of exit costs associated with our leased office space and are excluded because such charges are not directly related to ongoing business results and do not reflect expected future operating expenses.

Change in fair value of earn-out liability. This change is due to a reduction of acquisition purchase consideration. This is a non-recurring benefit that has no direct correlation to the operation of the Company's business.

Non-cash interest expense on convertible notes. The Company incurs non-cash interest expense related to its convertible notes. The Company excludes non-cash interest expense related to its convertible notes to provide more accurate comparisons of the Company's results with other peer companies and to more accurately reflect the Company's ongoing operations.

Income tax adjustments. For purposes of internal forecasting, planning and analyzing future periods that assume net income from operations, the Company estimates a fixed, long-term projected tax rate of approximately 24 percent for both 2021 and 2020, which consists of estimated U.S. federal and state tax rates, and excludes tax rates associated with certain items such as withholding tax, tax credits, deferred tax asset valuation allowance and the release of any deferred tax asset valuation allowance. Accordingly, the Company has applied these tax rates to its non-GAAP financial results for all periods in the relevant years to assist the Company's planning.

On occasion in the future, there may be other items, such as significant gains or losses from contingencies that the Company may exclude in deriving its non-GAAP financial measures if it believes that doing so is consistent with the goal of providing useful information to investors and management.

About Rambus Inc.

Rambus is a provider of industry-leading chips and silicon IP making data faster and safer. With over 30 years of advanced semiconductor experience, we are a pioneer in high-performance memory subsystems that solve the bottleneck between memory and processing for data-intensive systems. Whether in the cloud, at the edge or in your hand, real-time and immersive applications depend on data throughput and integrity. Rambus products and innovations deliver the increased bandwidth, capacity and security required to meet the world's data needs and drive ever-greater end-user experiences. For more information, visit rambus.com.

Forward-Looking Statements

This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including those relating to drivers of the Company's topline growth, the Company's ability to deliver ongoing profitable growth, and the Company's outlook for the second quarter of 2021. Such forward-looking statements are based on current expectations, estimates and projections, management's beliefs and certain assumptions made by the Company's management. Actual results may differ materially. The Company's business generally is subject to a number of risks which are described more fully in Rambus' periodic reports filed with the Securities and Exchange Commission, as well as the potential adverse impacts related to, or arising from, the Novel Coronavirus (COVID-19). The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

Contact

Rahul Mathur
Senior Vice President, Finance and Chief Financial Officer
Rambus Inc.
(408) 462-8000
Email Contact

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

	March 31, 2021		December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	109,554	$	136,146
Marketable securities	419,574		366,503
Accounts receivable	35,937		27,903
Unbilled receivables	137,729		138,813
Inventories	9,926		14,466
Prepaids and other current assets	11,616		15,881
Total current assets	724,336		699,712
Intangible assets, net	31,872		36,487
Goodwill	183,222		183,222
Property, plant and equipment, net	53,687		57,693
Operating lease right-of-use assets	27,214		28,708
Deferred tax assets	4,372		4,353
Unbilled receivables, long-term	207,016		236,699
Other assets	4,061		4,535
Total assets	$	1,235,780	$	1,251,409

LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	7,802	$	8,993
Accrued salaries and benefits	14,113		23,326
Deferred revenue	13,534		10,198
Income taxes payable, short-term	20,186		20,064
Operating lease liabilities	7,026		4,724
Other current liabilities	17,741		18,559
Total current liabilities	80,402		85,864
Long-term liabilities:
Convertible notes, long-term	157,905		156,031
Long-term operating lease liabilities	32,535		34,305
Long-term income taxes payable	36,391		41,333
Deferred tax liabilities	14,711		14,276
Other long-term liabilities	4,430		6,894
Total long-term liabilities	245,972		252,839
Total stockholders' equity	909,406		912,706
Total liabilities and stockholders' equity	$	1,235,780	$	1,251,409

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