Rambus Inc.
Oct 31, 2007

Rambus Reports Third Quarter Earnings

Revenue of $41.7 million, loss per share of $0.06 cents

LOS ALTOS, Calif., Oct 31, 2007 (BUSINESS WIRE) -- Rambus Inc. (Nasdaq:RMBS), one of the world's premier technology licensing companies specializing in high-speed memory architectures, today reported financial results for the third quarter of 2007.

Revenues for the third quarter were $41.7 million, down 12.3% sequentially and down 9.2% over the third quarter of last year.

"We have come through a very challenging time for the Company with the restatement and the consequences of the stock options backdating investigation," said Harold Hughes, president and chief executive officer at Rambus. "We look forward to being able to focus our attention on technology development and licensing activities."

Total costs and expenses for the third quarter of 2007 were $58.2 million, which included $4.2 million of restatement and related legal expenses and $8.7 million of stock-based compensation as compared to total costs and expenses of $57.7 million for the second quarter of 2007, which included $7.5 million of restatement and related legal expenses and $10.3 million of stock-based compensation. The increased level of litigation activity during the current quarter caused non-restatement related litigation expenses to rise approximately $5.0 million over the previous quarter.

Total costs and expenses for the third quarter of 2006 were $71.7 million, which included $23.8 million of restatement and related legal expenses and $10.5 million of stock-based compensation.

Net loss for the third quarter of 2007 was $6.5 million as compared to a net loss of $2.7 million in the previous quarter and a net loss of $22.6 million in the third quarter last year. Diluted loss per share for the third quarter was $0.06 as compared to a loss of $0.03 for the previous quarter and a loss per share of $0.22 for the third quarter of 2006.

Cash, cash equivalents and marketable securities as of the end of the quarter were $445 million, up approximately $3.5 million from the second quarter of 2007 and up $24 million from the third quarter of 2006.

The conference call discussing third quarter results will be available live via the Rambus website (http://investor.rambus.com) at 2:00 p.m. Pacific Time today. The call will be webcast and can be accessed through the Rambus website. A replay will be available following the call on Rambus' Investor Relations website or for one week at the following numbers: (888) 203-1112 (domestic) or (719) 457-0820 (international) with ID# 4789665.

About Rambus Inc.

Rambus is one of the world's premier technology licensing companies specializing in the invention and design of high-speed memory architectures. Additional information is available at www.rambus.com.

RMBSER

                             RAMBUS INC.
                CONDENSED CONSOLIDATED BALANCE SHEETS
                             (Unaudited)

                                           September 30, December 31,
(In thousands, except share amounts)           2007          2006
------------------------------------------ ------------- -------------

                  ASSETS
Current assets:
  Cash and cash equivalents                $    269,258  $     73,304
  Marketable securities                         175,733       351,055
  Accounts receivable                             2,167           846
  Unbilled receivables                            1,014         1,748
  Deferred and prepaid taxes                     11,703        11,388
  Prepaids and other current assets               5,757         4,403
                                           ------------- -------------
     Total current assets                       465,632       442,744

Marketable securities, long-term                      -        11,982
  Restricted cash                                 2,231         2,287
  Deferred taxes, long-term                     110,648        98,193
  Intangible assets, net                         14,764        18,697
  Property and equipment, net                    24,140        26,019
  Goodwill                                        4,454         3,315
  Other assets                                    3,084         1,380
                                           ------------- -------------
     Total assets                          $    624,953  $    604,617
                                           ============= =============

               LIABILITIES
Current liabilities:
  Accounts payable                         $     14,258  $     10,429
  Accrued salaries and benefits                   9,564        12,788
  Accrued litigation expenses                    25,311        23,143
  Other accrued liabilities                       7,604         5,878
  Convertible notes                                   -       160,000
  Deferred revenue                                5,510         6,003
  Income taxes payable                              433           197
                                           ------------- -------------
     Total current liabilities                   62,680       218,438

Convertible notes                               160,000             -
Deferred revenue, less current portion               19         1,554
Long-term income taxes payable                    3,136             -
Other long-term liabilities                       1,276         2,337
                                           ------------- -------------
     Total liabilities                          227,111       222,329
                                           ------------- -------------


           STOCKHOLDERS' EQUITY
Convertible preferred stock, $.001 par
 value:
  Authorized: 5,000,000 shares
  Issued and outstanding: no shares at
   September 30, 2007 and December 31,
   2006                                               -             -
Common stock, $.001 par value:
  Authorized: 500,000,000 shares
  Issued and outstanding: 103,820,383
   shares at September 30, 2007 and
   December 31, 2006                                104           104
Additional paid-in capital                      577,856       550,210
Accumulated deficit                            (180,170)     (167,396)
Accumulated other comprehensive income
 (loss)                                              52          (630)
                                           ------------- -------------
     Total stockholders' equity                 397,842       382,288
                                           ------------- -------------
     Total liabilities and stockholders'
      equity                               $    624,953  $    604,617
                                           ============= =============

                             RAMBUS INC.
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                             (Unaudited)


                               Three Months Ended   Nine Months Ended
                                  September 30,       September 30,
                               ------------------- -------------------
(In thousands, except per
 share amounts)                  2007      2006      2007      2006
------------------------------ --------- --------- --------- ---------

Revenue:
 Contract revenues             $  6,388  $  4,422  $ 21,145  $ 17,831
 Royalties                       35,327    41,523   118,263   124,903
                               --------- --------- --------- ---------
   Total revenues                41,715    45,945   139,408   142,734
                               --------- --------- --------- ---------

Costs and expenses:
 Cost of contract revenues(1)     5,781     6,121    18,878    23,010
 Research and development(1)     18,312    17,695    60,339    51,553
 Marketing, general and
  administrative(1)              29,914    24,114    79,657    81,869
 Costs of restatement and
  related legal activities        4,169    23,796    18,631    25,690
                               --------- --------- --------- ---------
   Total costs and expenses      58,176    71,726   177,505   182,122
                               --------- --------- --------- ---------
   Operating loss               (16,461)  (25,781)  (38,097)  (39,388)
Interest and other income, net    5,645     4,472    16,496    11,993
                               --------- --------- --------- ---------
 Loss before income taxes       (10,816)  (21,309)  (21,601)  (27,395)
Provision for (benefit from)
 income taxes                    (4,318)    1,337    (8,495)  (11,510)
                               --------- --------- --------- ---------
 Net loss                      $ (6,498) $(22,646) $(13,106) $(15,885)
                               ========= ========= ========= =========

Net loss per share:
 Basic                         $  (0.06) $  (0.22) $  (0.13) $  (0.15)
                               ========= ========= ========= =========
 Diluted                       $  (0.06) $  (0.22) $  (0.13) $  (0.15)
                               ========= ========= ========= =========

Weighted average shares used in per share calculations:
 Basic                          103,820   103,792   103,820   102,792
                               ========= ========= ========= =========
 Diluted                        103,820   103,792   103,820   102,792
                               ========= ========= ========= =========


(1) Includes stock-based compensation:
     Cost of contract revenues $  1,333  $  1,844  $  4,069  $  6,350
     Research and development     3,190     4,269     9,821    11,442
     Marketing, general and
      administrative              4,138     4,366    14,512    13,045

SOURCE: Rambus Inc.

Rambus Inc.
Nicole Noutsios, 650-947-5050 (Investor Relations)
nnoutsios@rambus.com
Linda Ashmore, 650-947-5411 (Public Relations)
lashmore@rambus.com

Copyright Business Wire 2007

News Provided by COMTEX