(1) Total stock-based compensation expense for the three and nine months ended September 30, 2016 and 2015 is presented as follows:
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Cost of revenue | $ | 14 | $ | 12 | $ | 42 | $ | 51 | |||||||
| Research and development | $ | 2,337 | $ | 1,548 | $ | 6,526 | $ | 5,303 | |||||||
| Sales, general and administrative | $ | 3,092 | $ | 2,008 | $ | 8,788 | $ | 6,395 | |||||||
|
Rambus Inc. Supplemental Reconciliation of GAAP to Non-GAAP Results (In thousands) (Unaudited) |
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| Three Months Ended | Nine Months Ended | |||||||||||||||||||
|
September 30,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
||||||||||||||||
| Operating costs and expenses | $ | 78,039 | $ | 64,493 | $ | 56,139 | $ | 205,920 | $ | 168,419 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Stock-based compensation expense | (5,443 | ) | (5,049 | ) | (3,568 | ) | (15,356 | ) | (11,749 | ) | ||||||||||
| Acquisition-related transaction costs and retention bonus expense | (441 | ) | (789 | ) | — | (3,038 | ) | (2 | ) | |||||||||||
| Purchase accounting adjustment for inventory fair value step-up | (1,168 | ) | — | — | (1,168 | ) | — | |||||||||||||
| Amortization expense | (10,174 | ) | (8,152 | ) | (6,268 | ) | (26,045 | ) | (18,914 | ) | ||||||||||
| Non-GAAP operating costs and expenses | $ | 60,813 | $ | 50,503 | $ | 46,303 | $ | 160,313 | $ | 137,754 | ||||||||||
| Operating income | $ | 11,816 | $ | 12,008 | $ | 17,640 | $ | 33,118 | $ | 51,086 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Stock-based compensation expense | 5,443 | 5,049 | 3,568 | 15,356 | 11,749 | |||||||||||||||
| Acquisition-related transaction costs and retention bonus expense | 441 | 789 | — | 3,038 | 2 | |||||||||||||||
| Purchase accounting adjustment for inventory fair value step-up | 1,168 | — | — | 1,168 | — | |||||||||||||||
| Amortization expense | 10,174 | 8,152 | 6,268 | 26,045 | 18,914 | |||||||||||||||
| Non-GAAP operating income | $ | 29,042 | $ | 25,998 | $ | 27,476 | $ | 78,725 | $ | 81,751 | ||||||||||
| Income before income taxes | $ | 8,765 | $ | 9,983 | $ | 15,062 | $ | 25,143 | $ | 42,669 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Stock-based compensation expense | 5,443 | 5,049 | 3,568 | 15,356 | 11,749 | |||||||||||||||
| Acquisition-related transaction costs and retention bonus expense | 441 | 789 | — | 3,038 | 2 | |||||||||||||||
| Purchase accounting adjustment for inventory fair value step-up | 1,168 | — | — | 1,168 | — | |||||||||||||||
| Amortization expense | 10,174 | 8,152 | 6,268 | 26,045 | 18,914 | |||||||||||||||
| Non-cash interest expense on convertible notes | 1,700 | 1,675 | 1,605 | 5,026 | 4,745 | |||||||||||||||
| Non-GAAP income before income taxes | $ | 27,691 | $ | 25,648 | $ | 26,503 | $ | 75,776 | $ | 78,079 | ||||||||||
| GAAP provision for (benefit from) income taxes | 4,254 | 6,107 | (166,971 | ) | 14,878 | (155,727 | ) | |||||||||||||
| Adjustment to GAAP provision for income taxes | 5,438 | 2,870 | 176,512 | 11,644 | 183,836 | |||||||||||||||
| Non-GAAP provision for income taxes | 9,692 | 8,977 | 9,541 | 26,522 | 28,109 | |||||||||||||||
| Non-GAAP net income | $ | 17,999 | $ | 16,671 | $ | 16,962 | $ | 49,254 | $ | 49,970 | ||||||||||
| Non-GAAP basic net income per share | $ | 0.16 | $ | 0.15 | $ | 0.15 | $ | 0.45 | $ | 0.43 | ||||||||||
| Non-GAAP diluted net income per share | $ | 0.16 | $ | 0.15 | $ | 0.14 | $ | 0.44 | $ | 0.42 | ||||||||||
| Weighted average shares used in non-GAAP per share calculation: | ||||||||||||||||||||
| Basic | 110,214 | 109,904 | 116,444 | 109,951 | 115,940 | |||||||||||||||
| Diluted | 113,723 | 112,061 | 119,542 | 112,805 | 118,997 | |||||||||||||||
|
Supplemental Reconciliation of GAAP to Non-GAAP Effective Tax Rate (1) |
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| Three Months Ended | Nine Months Ended | ||||||||||||||
|
September 30,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||
| GAAP effective tax rate | 49 |
% |
61 |
% |
1,109 |
% |
59 |
% |
365 |
% |
|||||
| Adjustment to GAAP effective tax rate | (14 | )% | (26 | )% | (1,073 | )% | (24 | )% | (329 | )% | |||||
| Non-GAAP effective tax rate | 35 |
% |
35 |
% |
36 |
% |
35 |
% |
36 |
% |
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| (1) | 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 35 percent for periods in 2016 and 36 percent for periods in 2015, 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 year to assist the Company’s planning for future periods. |
