Revenues for the fourth quarter of 2008 were $37.6 million, up 27.8% sequentially from the third quarter of 2008 due primarily to the receipt of the withheld royalties related to the now vacated Federal Trade Commission (“FTC”) order and increased royalties from our technology licenses. Revenue for the fourth quarter of 2008 was down 7.2% from the fourth quarter of last year. Revenues for the fiscal year were $142.5 million, down 20.8% from last fiscal year, as a result of lower royalties.
“It was a challenging year yet we finished the fourth quarter above guidance thanks to strong technology royalties as well as a one-time benefit of withheld royalties received once the FTC’s order was vacated,” said Harold Hughes, president and chief executive officer at Rambus. “In a time of considerable economic uncertainty, we have the financial strength to continue innovating in our focus markets and vigorously pursue fair compensation for the use of our patented inventions.”
Total costs and expenses for the fourth quarter of 2008 were $55.6 million, which included $8.7 million of stock-based compensation expenses, $0.2 million of restructuring related expenses and a net recovery of $0.3 million for previous stock-based compensation restatement and related legal expenses as compared to total costs and expenses of $60.0 million for the third quarter of 2008, which included $9.0 million of stock-based compensation expenses, $4.0 million of restructuring related expenses, $2.2 million of asset impairment expenses and $0.4 million for previous stock-based compensation restatement and related legal expenses. General litigation expenses for the fourth quarter of 2008 were $17.7 million, an increase of $2.0 million from the third quarter of 2008.
Total costs and expenses for the fourth quarter of 2007 were $72.6 million, which included $16.4 million of stock-based compensation and $0.8 million of previous stock-based compensation restatement and related legal expenses. General litigation expenses in the fourth quarter of 2007 were $16.1 million.
Interest and other income, net, for the fourth quarter of 2008 were $6.8 million, which included $4.4 million in gain from the repurchase of convertible notes, as compared to interest and other income, net, of $2.7 million in the third quarter of 2008 and $5.3 million in the fourth quarter of 2007.
Total costs and expenses for the fiscal year 2008 were $231.2 million, which included $37.2 million of stock-based compensation expenses, $4.2 million of restructuring-related expenses, $2.2 million of asset impairment expenses and $3.3 million for the previous stock-based compensation restatement and related legal expenses, as compared to total costs and expenses of $250.1 million for fiscal year 2007, which included $44.8 million of stock-based compensation expenses and $19.5 million for previous stock-based compensation restatement and related legal expenses. General litigation expenses for the year were $55.7 million, an increase of $16.2 million from fiscal year 2007.
Net loss for the fourth quarter of 2008 was $10.7 million as compared to a net loss of $27.9 million in the previous quarter and a net loss of $14.6 million in the fourth quarter of 2007. Net loss per share for the fourth quarter of 2008 was $0.10 as compared to a net loss per share of $0.27 for the previous quarter and a net loss per share of $0.14 for the fourth quarter of 2007.
Net loss for the fiscal year 2008 was $195.9 million as compared to a net loss of $27.7 million for the fiscal year 2007. Net loss per share for the fiscal year 2008 was $1.87 as compared to a net loss per share of $0.27 for the fiscal year 2007.
Cash, cash equivalents and marketable securities as of December 31, 2008 were $345.9 million, down approximately $33.1 million from September 30, 2008 and down approximately $95.0 million from December 31, 2007. During the fourth quarter of 2008, the Company repurchased approximately 1.6 million shares of common stock with an aggregate value of $14.3 million. Additionally, Rambus repurchased approximately $23.1 million in face value of its convertible notes for approximately $18.7 million, resulting in a gain of $4.4 million in the fourth quarter of 2008. During 2008, the Company repurchased approximately 3.6 million shares of common stock with an aggregate value of $49.2 million. The Company also paid approximately $18.3 million for a settlement related to the class action lawsuit during 2008.
The conference call discussing fourth quarter and year-end results will be webcast live via the Rambus Investor Relations website ( http://investor.rambus.com) at 2:00 p.m. Pacific Time today. A replay will be available following the call on Rambus’ Investor Relations website and for one week at the following numbers: (888) 203-1112 (domestic) or (719) 457-0820 (international) with ID# 4263715.
About Rambus Inc.
Rambus is one of the world’s premier technology licensing companies specializing in the invention and design of high-speed memory architectures. Additional information is available at www.rambus.com.
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