(1) |
Total stock-based compensation expense for the three and six months ended June 30, 2019 and 2018 is presented as follows: |
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Cost of product revenue |
$ |
1 |
|
|
$ |
2 |
|
|
$ |
2 |
|
|
$ |
5 |
|
Research and development |
$ |
3,058 |
|
|
$ |
3,286 |
|
|
$ |
6,268 |
|
|
$ |
6,478 |
|
Sales, general and administrative |
$ |
4,021 |
|
|
$ |
(1,400 |
) |
|
$ |
7,999 |
|
|
$ |
2,919 |
|
Rambus Inc. Supplemental Reconciliation of GAAP to Non-GAAP Results (In thousands) (Unaudited) |
|||||||
|
Three Months Ended June 30, |
||||||
|
2019 |
|
2018 |
||||
|
|
|
|
||||
Operating costs and expenses |
$ |
95,343 |
|
|
$ |
76,445 |
|
Adjustments: |
|
|
|
||||
Stock-based compensation expense |
(7,080 |
) |
|
(1,888 |
) |
||
Acquisition-related costs and retention bonus expense |
— |
|
|
(30 |
) |
||
Amortization expense |
(4,921 |
) |
|
(8,738 |
) |
||
| Restructuring charges (recoveries) |
(2,528 |
) |
|
1,022 |
|
||
| Impairment of assets held for sale |
(16,990 |
) |
|
— |
|
||
| Escrow settlement refund |
296 |
|
|
— |
|
||
| Non-GAAP operating costs and expenses |
$ |
64,120 |
|
|
$ |
66,811 |
|
|
|
|
|
|
||||
| Operating loss |
$ |
(37,046 |
) |
|
$ |
(19,987 |
) |
| Adjustments: |
|
|
|
||||
| Stock-based compensation expense |
7,080 |
|
|
1,888 |
|
||
| Acquisition-related costs and retention bonus expense |
— |
|
|
30 |
|
||
| Amortization expense |
4,921 |
|
|
8,738 |
|
||
| Restructuring charges (recoveries) |
2,528 |
|
|
(1,022 |
) |
||
| Impairment of assets held for sale |
16,990 |
|
|
— |
|
||
| Escrow settlement refund |
(296 |
) |
|
— |
|
||
| Non-GAAP operating loss |
$ |
(5,823 |
) |
|
$ |
(10,353 |
) |
|
|
|
|
|
||||
| Loss before income taxes |
$ |
(32,608 |
) |
|
$ |
(16,372 |
) |
| Adjustments: |
|
|
|
||||
| Stock-based compensation expense |
7,080 |
|
|
1,888 |
|
||
| Acquisition-related costs and retention bonus expense |
— |
|
|
30 |
|
||
| Amortization expense |
4,921 |
|
|
8,738 |
|
||
| Restructuring charges (recoveries) |
2,528 |
|
|
(1,022 |
) |
||
| Impairment of assets held for sale |
16,990 |
|
|
— |
|
||
| Escrow settlement refund |
(296 |
) |
|
— |
|
||
| Non-cash interest expense on convertible notes |
1,702 |
|
|
2,717 |
|
||
| Non-GAAP income (loss) before income taxes |
$ |
317 |
|
|
$ |
(4,021 |
) |
| GAAP provision for (benefit from) income taxes |
4,372 |
|
|
(1,015 |
) |
||
| Adjustment to GAAP provision for (benefit from) income taxes |
(4,296 |
) |
|
50 |
|
||
| Non-GAAP provision for (benefit from) income taxes |
76 |
|
|
(965 |
) |
||
| Non-GAAP net income (loss) |
$ |
241 |
|
|
$ |
(3,056 |
) |
|
|
|
|
|
||||
| Non-GAAP basic net income (loss) per share |
$ |
0.00 |
|
|
$ |
(0.03 |
) |
| Non-GAAP diluted net income (loss) per share |
$ |
0.00 |
|
|
$ |
(0.03 |
) |
| Weighted average shares used in non-GAAP per share calculation: |
|
|
|
||||
| Basic |
110,875 |
|
|
107,737 |
|
||
| Diluted |
112,522 |
|
|
107,737 |
|
||
| Supplemental Reconciliation of GAAP to Non-GAAP Effective Tax Rate (1) |
|||||
|
|
Three Months Ended
|
||||
|
|
2019 |
|
2018 |
||
| GAAP effective tax rate |
(13 |
)% |
|
6 |
% |
| Adjustment to GAAP effective tax rate |
37 |
% |
|
18 |
% |
| Non-GAAP effective tax rate |
24 |
% |
|
24 |
% |
| (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 24 percent for both 2019 and 2018, 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
|
|
Three Months Ended
|
||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
| Revenue (i) |
$ |
58,297 |
|
|
$ |
56,458 |
|
|
$ |
58,297 |
|
|
$ |
56,458 |
|
| Operating loss (ii) |
(37,046 |
) |
|
(19,987 |
) |
|
(5,823 |
) |
|
(10,353 |
) |
||||
| Operating margin (ii/i) |
(64 |
)% |
|
(35 |
)% |
|
(10 |
)% |
|
(18 |
)% |
||||
| Rambus Inc. Reconciliation of GAAP Forward Looking Estimates to Non-GAAP Forward Looking Estimates (In millions) (Unaudited) |
|||||||
| 2019 Third Quarter Outlook |
Three Months Ended
|
||||||
|
|
Low |
|
High |
||||
|
|
|
|
|
||||
| Forward-looking operating costs and expenses |
$ |
69.8 |
|
|
$ |
65.8 |
|
| Adjustments: |
|
|
|
||||
| Stock-based compensation expense |
(7.1 |
) |
|
(7.1 |
) |
||
| Amortization expense |
(4.9 |
) |
|
(4.9 |
) |
||
| Forward-looking Non-GAAP operating costs and expenses |
$ |
57.8 |
|
|
$ |
53.8 |
|
|
|
|
|
|
||||
| Forward-looking interest and other income (expense), net |
$ |
4.4 |
|
|
$ |
4.4 |
|
| Adjustments: |
|
|
|
||||
| Interest income related to significant financing component from fixed-fee patent and technology licensing arrangements |
(5.3 |
) |
|
(5.3 |
) |
||
| Non-cash interest expense on convertible notes |
1.7 |
|
|
1.7 |
|
||
| Forward-looking Non-GAAP interest and other income (expense), net |
$ |
0.8 |
|
|
$ |
0.8 |
|
