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.
Forward-Looking Statements
This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 relating to Rambus' expectations regarding revenue for the second quarter of 2014. Such forward-looking statements are based on current expectations, estimates and projections, management's beliefs and certain assumptions made by Rambus' management. Actual results may differ materially. Rambus' 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. Rambus undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.
About Rambus Inc.
Rambus brings invention to market. Our customizable IP cores, architecture licenses, tools, services, and training improve the competitive advantage of our customers’ products while accelerating their time-to-market. Rambus products and innovations capture, secure and move data. For more information, visit rambus.com.
RMBSFN
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Rambus Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) |
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March 31, 2014 |
December 31, 2013 |
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| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 346,576 | $ | 338,696 | |||
| Marketable securities | 56,848 | 48,966 | |||||
| Accounts receivable | 7,816 | 2,251 | |||||
| Prepaids and other current assets | 8,766 | 8,253 | |||||
| Deferred taxes | 1,009 | 205 | |||||
| Total current assets | 421,015 | 398,371 | |||||
| Intangible assets, net | 109,260 | 117,172 | |||||
| Goodwill | 116,899 | 116,899 | |||||
| Property, plant and equipment, net | 70,110 | 72,642 | |||||
| Deferred taxes, long-term | 643 | 4,797 | |||||
| Other assets | 3,071 | 3,498 | |||||
| Total assets | $ | 720,998 | $ | 713,379 | |||
| LIABILITIES & STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 5,555 | $ | 7,001 | |||
| Accrued salaries and benefits | 27,257 | 33,448 | |||||
| Convertible notes, short-term | 168,658 | 164,047 | |||||
| Other accrued liabilities | 8,171 | 8,346 | |||||
| Total current liabilities | 209,641 | 212,842 | |||||
| Long-term liabilities: | |||||||
| Convertible notes, long-term | 110,962 | 109,629 | |||||
| Long-term imputed financing obligation | 39,295 | 39,349 | |||||
| Other long-term liabilities | 9,115 | 11,330 | |||||
| Total long-term liabilities | 159,372 | 160,308 | |||||
| Total stockholders’ equity | 351,985 | 340,229 | |||||
| Total liabilities and stockholders’ equity | $ | 720,998 | $ | 713,379 | |||
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Rambus Inc. Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) |
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Three Months Ended
March 31, |
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| 2014 | 2013 | |||||||
| Revenue: | ||||||||
| Royalties | $ | 73,637 | $ | 66,222 | ||||
| Contract and other revenue | 4,651 | 644 | ||||||
| Total revenue | 78,288 | 66,866 | ||||||
| Operating costs and expenses: | ||||||||
| Cost of revenue (1) | 10,022 | 6,534 | ||||||
| Research and development (1) | 26,898 | 32,848 | ||||||
| Marketing, general and administrative (1) | 18,820 | 25,122 | ||||||
| Restructuring charges | 39 | 2,206 | ||||||
| Gain from sale of intellectual property | (170 | ) | (1,285 | ) | ||||
| Gain from settlement | (510 | ) | — | |||||
| Total operating costs and expenses | 55,099 | 65,425 | ||||||
| Operating income | 23,189 | 1,441 | ||||||
| Interest income and other income (expense), net | 13 | (20 | ) | |||||
| Interest expense | (9,926 | ) | (7,312 | ) | ||||
| Interest and other income (expense), net | (9,913 | ) | (7,332 | ) | ||||
| Income (loss) before income taxes | 13,276 | (5,891 | ) | |||||
| Provision for income taxes | 5,472 | 4,511 | ||||||
| Net income (loss) | $ | 7,804 | $ | (10,402 | ) | |||
| Net income (loss) per share: | ||||||||
| Basic | $ | 0.07 | $ | (0.09 | ) | |||
| Diluted | $ | 0.07 | $ | (0.09 | ) | |||
| Weighted average shares used in per share calculation | ||||||||
| Basic | 113,590 | 111,599 | ||||||
| Diluted | 116,629 | 111,599 | ||||||
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_________ |
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(1) Total stock-based compensation expense for the three months ended March 31, 2014 and 2013 are presented as follows: |
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| Three Months Ended March 31, | ||||||||
| 2014 | 2013 | |||||||
| Cost of revenue | $ | 7 | $ | — | ||||
| Research and development | $ | 1,311 | $ | 1,876 | ||||
| Marketing, general and administrative | $ | 1,581 | $ | 3,072 | ||||
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Rambus Inc. Supplemental Reconciliation of GAAP to Non-GAAP Results (In thousands) (Unaudited) |
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| Three Months Ended | ||||||||||||
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March 31, 2014 |
December 31, 2013 |
March 31, 2013 |
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| Operating costs and expenses | $ | 55,099 | $ | 67,208 | $ | 65,425 | ||||||
| Adjustments: | ||||||||||||
| Stock-based compensation | (2,899 | ) | (3,096 | ) | (4,948 | ) | ||||||
| Acquisition-related transaction costs and retention bonuses | (1,435 | ) | (1,463 | ) | (4,012 | ) | ||||||
| Amortization | (6,797 | ) | (7,489 | ) | (7,040 | ) | ||||||
| Reversal of one-time litigation costs | — | 566 | — | |||||||||
| Restructuring charges | (39 | ) | (2,211 | ) | (2,206 | ) | ||||||
| Impairment of goodwill and long-lived assets | — | (9,681 | ) | — | ||||||||
| Severance costs | — | — | (514 | ) | ||||||||
| Costs of restatement and related legal activities | — | — | (17 | ) | ||||||||
| Non-GAAP operating costs and expenses | $ | 43,929 | $ | 43,834 | $ | 46,688 | ||||||
| Operating income | $ | 23,189 | $ | 6,214 | $ | 1,441 | ||||||
| Adjustments: | ||||||||||||
| Stock-based compensation | 2,899 | 3,096 | 4,948 | |||||||||
| Acquisition-related transaction costs and retention bonuses | 1,435 | 1,463 | 4,012 | |||||||||
| Amortization | 6,797 | 7,489 | 7,040 | |||||||||
| Reversal of one-time litigation costs | — | (566 | ) | — | ||||||||
| Restructuring charges | 39 | 2,211 | 2,206 | |||||||||
| Impairment of goodwill and long-lived assets | — | 9,681 | — | |||||||||
| Severance costs | — | — | 514 | |||||||||
| Costs of restatement and related legal activities | — | — | 17 | |||||||||
| Non-GAAP operating income | $ | 34,359 | $ | 29,588 | $ | 20,178 | ||||||
| Income (loss) before income taxes | $ | 13,276 | $ | (3,604 | ) | $ | (5,891 | ) | ||||
| Adjustments: | ||||||||||||
| Stock-based compensation | 2,899 | 3,096 | 4,948 | |||||||||
| Acquisition-related transaction costs and retention bonuses | 1,435 | 1,463 | 4,012 | |||||||||
| Amortization | 6,797 | 7,489 | 7,040 | |||||||||
| Reversal of one-time litigation costs | — | (566 | ) | — | ||||||||
| Restructuring charges | 39 | 2,211 | 2,206 | |||||||||
| Impairment of goodwill and long-lived assets | — | 9,681 | — | |||||||||
| Severance costs | — | — | 514 | |||||||||
| Costs of restatement and related legal activities | — | — | 17 | |||||||||
| Non-cash interest expense on convertible notes | 6,242 | 5,927 | 4,089 | |||||||||
| Non-GAAP income before income taxes | $ | 30,688 | $ | 25,697 | $ | 16,935 | ||||||
| Non-GAAP provision for income taxes | 11,048 | 9,251 | 6,096 | |||||||||
| Non-GAAP net income | $ | 19,640 | $ | 16,446 | $ | 10,839 | ||||||
| Non-GAAP basic net income per share | $ | 0.17 | $ | 0.15 | $ | 0.10 | ||||||
| Non-GAAP diluted net income per share | $ | 0.17 | $ | 0.14 | $ | 0.09 | ||||||
| Weighted average shares used in non-GAAP per share calculation: | ||||||||||||
| Basic | 113,590 | 113,217 | 111,599 | |||||||||
| Diluted | 116,629 | 116,211 | 118,021 | |||||||||
