Rambus Reports Second Quarter 2017 Financial Results

On occasion in the future, there may be other items, such as impairments or 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.

 

Rambus Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

 

June 30,
2017

 

December 31,
2016

ASSETS
 
Current assets:
Cash and cash equivalents $ 167,207 $ 135,294
Marketable securities 746 36,888
Accounts receivable 36,788 21,099
Inventories 5,328 5,633
Prepaids and other current assets 12,255   17,867
Total current assets 222,324 216,781
Intangible assets, net 111,875 132,388
Goodwill 207,959 204,794
Property, plant and equipment, net 54,305 58,442
Deferred tax assets 206,942 168,342
Other assets 2,564   2,749
Total assets $ 805,969   $ 783,496
 
LIABILITIES & STOCKHOLDERS’ EQUITY
 
Current liabilities:
Accounts payable $ 9,099 $ 9,793
Accrued salaries and benefits 14,076 14,177
Deferred revenue 21,327 16,932
Other current liabilities 9,449   10,399
Total current liabilities 53,951 51,301
Long-term liabilities:
Convertible notes, long-term 129,690 126,167
Long-term imputed financing obligation 37,677 38,029
Other long-term liabilities 14,433   15,217
Total long-term liabilities 181,800   179,413
Total stockholders’ equity 570,218   552,782
Total liabilities and stockholders’ equity $ 805,969   $ 783,496
 
 

Rambus Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

   

 

Three Months Ended
June 30,

Six Months Ended
June 30,

  2017       2016     2017       2016  
 
Revenue:
Royalties $ 69,990 $ 62,835 $ 138,946 $ 125,712
Product revenue 8,401 3,902 19,305 7,214
Contract and other revenue   16,329     9,764     33,820     16,257  
Total revenue   94,720     76,501     192,071     149,183  
Operating costs and expenses:
Cost of product revenue (1) 7,480 3,016 12,730 5,550
Cost of contract and other revenue 14,337 11,073 28,818 20,746
Research and development (1) 37,522 28,753 73,522 57,280
Sales, general and administrative (1) 27,137 21,789 55,323 44,884
Gain from settlement       (138 )       (579 )
Total operating costs and expenses   86,476     64,493     170,393     127,881  
Operating income 8,244 12,008 21,678 21,302
Interest income and other income (expense), net 129 1,138 283 1,380
Interest expense   (3,261 )   (3,163 )   (6,467 )   (6,304 )
Interest and other income (expense), net   (3,132 )   (2,025 )   (6,184 )   (4,924 )
Income before income taxes 5,112 9,983 15,494 16,378
Provision for income taxes   2,507     6,107     9,883     10,624  
Net income $ 2,605   $ 3,876   $ 5,611   $ 5,754  
Net income per share:
Basic $ 0.02   $ 0.04   $ 0.05   $ 0.05  
Diluted $ 0.02   $ 0.03   $ 0.05   $ 0.05  
Weighted average shares used in per share calculation
Basic   110,060     109,904     110,758     109,818  
Diluted   112,565     112,061     114,091     112,202  
 

_________

(1) Total stock-based compensation expense for the three and six months ended June 30, 2017 and 2016 is presented as follows:

 

Three Months Ended
June 30,

Six Months Ended
June 30,

  2017     2016     2017    

2016

 
Cost of product revenue $ 19 $ 14 $ 33 $ 28
Research and development $ 3,067 $ 2,109 $ 6,079 $ 4,189
Sales, general and administrative $ 3,523 $ 2,926 $ 7,093 $ 5,696
 
 

Rambus Inc.

Supplemental Reconciliation of GAAP to Non-GAAP Results

(In thousands)

(Unaudited)

   
Three Months Ended Six Months Ended
June 30, 2017   March 31, 2017   June 30, 2016 June 30, 2017   June 30, 2016
 
Operating costs and expenses $ 86,476 $ 83,917 $ 64,493 $ 170,393 $ 127,881
Adjustments:
Stock-based compensation expense (6,609 ) (6,596 ) (5,049 ) (13,205 ) (9,913 )
Acquisition-related transaction costs and retention bonus expense (90 ) (81 ) (789 ) (171 ) (2,597 )
Amortization expense (10,450 ) (10,488 ) (8,152 ) (20,938 ) (15,871 )
Non-GAAP operating costs and expenses $ 69,327   $ 66,752   $ 50,503   $ 136,079   $ 99,500  
 
Operating income $ 8,244 $ 13,434 $ 12,008 $ 21,678 $ 21,302
Adjustments:
Stock-based compensation expense 6,609 6,596 5,049 13,205 9,913
Acquisition-related transaction costs and retention bonus expense 90 81 789 171 2,597
Amortization expense 10,450   10,488   8,152   20,938   15,871  
Non-GAAP operating income $ 25,393   $ 30,599   $ 25,998   $ 55,992   $ 49,683  
 
Income before income taxes $ 5,112 $ 10,382 $ 9,983 $ 15,494 $ 16,378
Adjustments:
Stock-based compensation expense 6,609 6,596 5,049 13,205 9,913
Acquisition-related transaction costs and retention bonus expense 90 81 789 171 2,597
Amortization expense 10,450 10,488 8,152 20,938 15,871
Non-cash interest expense on convertible notes 1,774   1,749   1,675   3,523   3,326  
Non-GAAP income before income taxes $ 24,035 $ 29,296 $ 25,648 $ 53,331 $ 48,085
GAAP provision for income taxes 2,507 7,376 6,107 9,883 10,624
Adjustment to GAAP provision for income taxes 5,905   2,878   2,870   8,783   6,206  
Non-GAAP provision for income taxes 8,412   10,254   8,977   18,666   16,830  
Non-GAAP net income $ 15,623   $ 19,042   $ 16,671   $ 34,665   $ 31,255  
 
Non-GAAP basic net income per share $ 0.14 $ 0.17 $ 0.15 $ 0.31 $ 0.28
Non-GAAP diluted net income per share $ 0.14 $ 0.17 $ 0.15 $ 0.30 $ 0.28
Weighted average shares used in non-GAAP per share calculation:
Basic 110,060 111,464 109,904 110,758 109,818
Diluted 112,565 115,325 112,061 114,091 112,202
 
 

Supplemental Reconciliation of GAAP to Non-GAAP Effective Tax Rate (1)

   
Three Months Ended Six Months Ended
June 30, 2017   March 31, 2017   June 30, 2016 June 30, 2017   June 30, 2016
 
GAAP effective tax rate 49

 %

71

 %

61

 %

64

 %

65

 %

Adjustment to GAAP effective tax rate (14 )% (36 )% (26 )% (29 )% (30 )%
Non-GAAP effective tax rate 35

 %

35

 %

35

 %

35

 %

35

 %

      (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 both 2017 and 2016, 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.
 
 

Rambus Inc.

Reconciliation of Other GAAP to Non-GAAP Items

(In thousands, except percentages)

(Unaudited)

   
GAAP Non-GAAP
Three Months Ended June 30, Three Months Ended June 30,
2017   2016 2017   2016
Revenue (i) $94,720 $ 76,501 $ 94,720 $ 76,501
Operating income (ii) 8,244 12,008 25,393 25,998
Operating margin (ii/i) 9 % 16 % 27 % 34 %
 
GAAP Non-GAAP
Six Months Ended

June 30,

Six Months Ended

June 30,

2017 2016 2017 2016
Revenue (i) $ 192,071 $ 149,183 $ 192,071 $ 149,183
Operating income (ii) 21,678 21,302 55,992 49,683
Operating margin (ii/i) 11 % 14 % 29 % 33 %
 
Three Months Ended June 30,
2017 2016
 
Net income $ 2,605 $ 3,876
Add back:
Interest and other income (expense), net 3,132 2,025
Provision for income taxes 2,507 6,107
Depreciation expense 3,330 2,996
Amortization expense   10,450     8,152  
EBITDA (1) $ 22,024 $ 23,156
Adjustments:
Stock-based compensation expense 6,609 5,049
Acquisition-related transaction costs and retention bonus expense   90     789  
Adjusted EBITDA (2) $ 28,723   $ 28,994  
      (1)   EBITDA is a non-GAAP measure that management uses to evaluate the cash generating capacity of the company. The most directly comparable GAAP measure is net income. EBITDA is net income adjusted for net interest expense, income taxes, and depreciation and amortization. It should not be considered as an alternative to net income computed under GAAP.
(2) Adjusted EBITDA excludes the impact of other non-GAAP adjustments indicated in the above tables.
 
 

Rambus Inc.

Reconciliation of GAAP Forward Looking Estimates to Non-GAAP Forward Looking Estimates

(In millions, except per share amounts)

(Unaudited)

 

Three Months Ended
September 30, 2017

Low   High
 
Forward-looking operating costs and expenses $ 89.2 $ 85.2
Adjustments:
Stock-based compensation expense (7.5 ) (7.5 )
Amortization expense (11.0 ) (11.0 )
Forward-looking Non-GAAP operating costs and expenses $ 70.7   $ 66.7  
 
Forward-looking operating income $ 6.8 $ 16.8
Adjustments:
Stock-based compensation expense 7.5 7.5
Amortization expense 11.0   11.0  
Forward-looking Non-GAAP operating income $ 25.3   $ 35.3  
 
Forward-looking income before income taxes $ 4.1 $ 14.1
Adjustments:
Stock-based compensation expense 7.5 7.5
Amortization expense 11.0 11.0
Non-cash interest expense on convertible notes 1.7   1.7  
Forward-looking Non-GAAP income before income taxes $ 24.3 $ 34.3
Forward-looking GAAP provision for income taxes 1.4 4.9
Adjustment to Forward-looking GAAP provision for income taxes 7.1   7.1  
Forward-looking Non-GAAP provision for income taxes 8.5   12.0  
Forward-looking Non-GAAP net income $ 15.8   $ 22.3  
 
Forward-looking Non-GAAP basic net income per share $ 0.14 $ 0.20
Forward-looking Non-GAAP diluted net income per share $ 0.14 $ 0.20
Weighted average shares used in forward-looking Non-GAAP per share calculation:
Basic 111.0 111.0
Diluted 113.0 113.0

« Previous Page 1 | 2 | 3 | 4 | 5  Next Page »



© 2024 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise