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Rambus Reports Fourth Quarter And Full Year 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 www.rambus.com.

RMBSFN

Rambus Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

   

 

December 31,

2012

December 31,

2011

ASSETS
 
Current assets:
Cash and cash equivalents $ 148,984 $ 162,244
Marketable securities 54,346 127,212
Accounts receivable 529 1,026
Prepaids and other current assets 9,386 8,096
Deferred taxes   788   2,798
Total current assets 214,033 301,376
Intangible assets, net 153,173 181,955
Goodwill 124,969 115,148
Property, plant and equipment, net 86,905 81,105
Deferred taxes, long-term 4,458 7,531
Other assets   4,274   6,539
Total assets $ 587,812 $ 693,654
 
LIABILITIES & STOCKHOLDERS’ EQUITY
 
Current liabilities:
Accounts payable $ 7,918 $ 16,567
Accrued salaries and benefits 23,992 31,763
Accrued litigation expenses 9,822 10,502
Deferred revenue 8,113 509
Other accrued liabilities   4,289   5,970
Total current liabilities 54,134 65,311
Long-term liabilities:
Convertible notes, long-term 147,556 133,493
Long-term imputed financing obligation 45,919 43,793
Other long-term liabilities   18,609   21,263
Total long-term liabilities   212,084   198,549
Total stockholders’ equity   321,594   429,794
Total liabilities and stockholders’ equity $ 587,812 $ 693,654
 

Rambus Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

   

 

Three Months Ended

December 31,

Year Ended

December 31,

  2012       2011     2012       2011  
 
Revenue:
Royalties $ 57,258 $ 82,583 $ 232,385 $ 299,004
Contract revenue   185     776     1,666     13,359  
Total revenue   57,443     83,359     234,051     312,363  
Operating costs and expenses:
Cost of revenue (1) 6,340 7,453 28,372 24,085
Research and development (1) 33,088 35,841 140,503 115,696
Marketing, general and administrative (1) 21,311 44,715 112,594 164,131
Restructuring charges 679 7,301
Costs of restatement and related legal activities 52 13,484 244 16,187
Impairment of goodwill and long-lived assets 35,471
Gain from settlement               (6,200 )
Total operating costs and expenses   61,470     101,493     324,485     313,899  
Operating loss (4,027 ) (18,134 ) (90,434 ) (1,536 )
Interest income and other income (expense), net (116 ) 92 59 563
Interest expense   (7,090 )   (6,366 )   (27,510 )   (24,828 )
Interest and other income (expense), net   (7,206 )   (6,274 )   (27,451 )   (24,265 )
Loss before income taxes (11,233 ) (24,408 ) (117,885 ) (25,801 )
Provision for income taxes   4,899     4,308     16,451     17,252  
Net loss $ (16,132 ) $ (28,716 ) $ (134,336 ) $ (43,053 )
Net loss per share:
Basic $ (0.14 ) $ (0.26 ) $ (1.21 ) $ (0.39 )
Diluted $ (0.14 ) $ (0.26 ) $ (1.21 ) $ (0.39 )
Weighted average shares used in per share calculation
Basic   111,332     110,171     110,769     110,041  
Diluted   111,332     110,171     110,769     110,041  

_________

(1) Total stock-based compensation expense for the three months and years ended December 31, 2012 and 2011 are presented as follows:

 
Three Months Ended

December 31,

Year Ended

December 31,

  2012     2011     2012     2011  
Cost of revenue $ $ 76 $ 20 $ 575
Research and development $ 1,974 $ 2,742 $ 9,546 $ 10,519
Marketing, general and administrative $ 2,542 $ 3,640 $ 12,980 $ 16,902
 

Rambus Inc.

Supplemental Reconciliation of GAAP to Non-GAAP Results

(In thousands)

(Unaudited)

 
Three Months Ended Year Ended

December 31, 2012

September 30, 2012

December 31, 2011

December 31, 2012

December 31, 2011

 
Revenue $ 57,443 $ 57,530 $ 83,359 $ 234,051 $ 312,363
Adjustments:
Other patent royalties received 4,175 4,875 1,125 12,665 (750 )
Gain from settlement 6,200
Total customer licensing income $ 61,618 $ 62,405 $ 84,484 $ 246,716 $ 317,813
 
Operating costs and expenses $ 61,470 $ 104,630 $ 101,493 $ 324,485 $ 313,899
Adjustments:
Stock-based compensation (4,516 ) (5,089 ) (6,458 ) (22,546 ) (27,996 )
Acquisition-related deal costs and retention bonuses (4,191 ) (4,437 ) (7,878 ) (25,678 ) (21,915 )
Amortization (6,811 ) (7,977 ) (7,283 ) (30,347 ) (20,192 )
Restructuring charges (679 ) (6,622 ) (7,301 )
Impairment of goodwill and long-lived assets (35,471 ) (35,471 )
Costs of restatement and related legal activities (52 ) (79 ) (13,484 ) (244 ) (16,187 )
Gain from settlement 6,200
Non-GAAP operating costs and expenses $ 45,221 $ 44,955 $ 66,390 $ 202,898 $ 233,809
 
Operating loss $ (4,027 ) $ (47,100 ) $ (18,134 ) $ (90,434 ) $ (1,536 )
Adjustments:
Other patent royalties received 4,175 4,875 1,125 12,665 (750 )
Stock-based compensation 4,516 5,089 6,458 22,546 27,996
Acquisition-related deal costs and retention bonuses 4,191 4,437 7,878 25,678 21,915
Amortization 6,811 7,977 7,283 30,347 20,192
Restructuring charges 679 6,622 7,301
Impairment of goodwill and long-lived assets 35,471 35,471
Costs of restatement and related legal activities 52 79 13,484 244 16,187
Non-GAAP operating income $ 16,397 $ 17,450 $ 18,094 $ 43,818 $ 84,004
 
Loss before income taxes $ (11,233 ) $ (54,233 ) $ (24,408 ) $ (117,885 ) $ (25,801 )
Adjustments:
Other patent royalties received 4,175 4,875 1,125 12,665 (750 )
Stock-based compensation 4,516 5,089 6,458 22,546 27,996
Acquisition-related deal costs and retention bonuses 4,191 4,437 7,878 25,678 21,915
Amortization 6,811 7,977 7,283 30,347 20,192
Restructuring charges 679 6,622 7,301
Impairment of goodwill and long-lived assets 35,471 35,471
Costs of restatement and related legal activities 52 79 13,484 244 16,187
Non-cash interest expense on convertible notes 3,839 3,789 3,296 14,695 12,622
Non-GAAP income before income taxes $ 13,030 $ 14,106 $ 15,116 $ 31,062

$

72,361
Non-GAAP provision for income taxes 4,691 5,078 5,442 11,182 26,060
Non-GAAP net income $ 8,339 $ 9,028 $ 9,674 $ 19,880 $ 46,301
 
Non-GAAP basic net income per share $ 0.07 $ 0.08 $ 0.09 $ 0.18 $ 0.42

Non-GAAP diluted net income per share

$ 0.07 $ 0.08 $ 0.08 $ 0.17 $ 0.41

Weighted average shares used in non-GAAP per share calculation:

Basic 111,332 110,826 110,171 110,769 110,041
Diluted 118,022 117,738 115,315 117,619 114,099




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