LOS ALTOS, Calif., Oct 22, 2009 (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 2009.
Revenue for the third quarter of 2009 was $27.9 million, up 3.3%
sequentially from the second quarter of 2009 primarily due to higher
variable royalty revenue. As compared to the third quarter of 2008,
revenue was down 5.3% primarily due to lower contract revenue. Revenue
for the nine months ended September 30, 2009 was $82.2 million, down
21.6% over the same period of last year primarily due to revenue
recognized from Elpida during the first half of 2008.
"The recovery in chip sales following an industry overcorrection, and
modest growth in our focus markets, helped deliver revenues at the high
end of our guidance," said Harold Hughes, president and chief executive
officer at Rambus. "While there is much work ahead, we continue to
progress in our strategy of creating and licensing innovations that make
great computing and consumer electronics products possible."
Total costs and expenses for the third quarter of 2009 were
$48.5 million, which included $7.7 million of stock-based compensation
expenses and $0.1 million for previous stock-based compensation
restatement and related legal expenses. This is compared to total costs
and expenses of $49.3 million for the second quarter of 2009, which
included $7.9 million of stock-based compensation expenses and a net
recovery of $0.4 million for previous stock-based compensation
restatement and related legal expenses. General litigation expenses for
the third quarter were $12.0 million, a decrease of $3.0 million from
the second quarter of 2009. Total costs and expenses in the third
quarter of last year were $60.0 million, which included $9.0 million of
stock-based compensation expenses, $4.0 million of restructuring-related
expenses, $2.2 million of asset impairment expenses and $0.4 million of
previous stock-based compensation restatement and related legal
expenses. General litigation expenses in the third quarter of 2009
decreased $3.7 million from the third quarter of 2008.
Total costs and expenses for the nine months ended September 30, 2009
were $141.4 million, which included $24.0 million of stock-based
compensation expenses and a net recovery of $14.0 million for previous
stock-based compensation restatement and related legal expenses. This is
compared to total costs and expenses of $175.6 million for the same
period of 2008, which included $28.5 million of stock-based compensation
expenses, $4.0 million of restructuring-related expenses, $2.2 million
of asset impairment expenses and $3.6 million of previous stock-based
compensation restatement and related legal expenses. General litigation
expenses for the nine months ended September 30, 2009 were $45.0
million, an increase of $7.0 million from the same period in 2008.
Interest and other expense, net, for the third quarter of 2009 was $6.8
million as compared to $1.6 million in the second quarter of 2009 and
$0.3 million in the third quarter of 2008. Interest and other expense,
net, for the nine months ended September 30, 2009 was $9.6 million as
compared to interest income of $1.4 million for the same period of 2008.
Prior periods have been adjusted to reflect the impact of the adoption
on January 1, 2009 of a FASB staff position which clarifies the
accounting for convertible debt instruments that may be settled in cash
upon conversion, including partial cash settlement. The Company has
retrospectively adjusted the income statement to include non-cash
interest expense of $3.0 million for the third quarter of 2008 and $8.8
million for nine months ended September 30, 2008.
Net loss for the third quarter of 2009 was $27.5 million as compared to
a net loss of $24.0 million in the second quarter of 2009 and a net loss
of $30.9 million (adjusted for adoption of the FASB staff position) in
the third quarter of 2008. Net loss per share for the third quarter of
2009 was $0.26 as compared to a net loss per share of $0.23 in the
second quarter of 2009 and a net loss per share of $0.29 (adjusted for
adoption of the FASB staff position) for the third quarter of 2008. Net
loss for the nine months ended September 30, 2009 was $68.9 million as
compared to a net loss of $183.6 million (adjusted for adoption of the
FASB staff position) for the same period of 2008. Net loss per share for
the nine months ended September 30, 2009 was $0.66 as compared to a net
loss per share of $1.75 (adjusted for adoption of the FASB staff
position) in the same period of 2008.
Cash, cash equivalents, and marketable securities as of September 30,
2009 were $498.5 million, up approximately $18.1 million from June 30,
2009 and up approximately $152.6 million from December 31, 2008. During
the third quarter of 2009, the Company issued an additional $22.5
million aggregate principal amount of 5% Convertible Senior Notes due
2014 as a result of the underwriters exercising their overallotment
option related to the 2014 Notes. During the nine months ended September
30, 2009, the Company received approximately $168.2 million net proceeds
related to the issuance of the 5% Convertible Senior Notes, $7.3 million
of insurance proceeds related to reimbursement claims associated with
the stock option investigation and derivative lawsuits as well as $4.5
million from former executives due to the resolution of the derivative
lawsuits.
The convertible notes are carried at face value less the debt discount
associated with the adoption of the FASB staff position for the periods
presented. As such, the carrying value of the convertible notes as of
December 31, 2008 has been retrospectively adjusted to reflect the
impact of the adoption of the FASB staff position.
The conference call discussing third quarter 2009 results will be
webcast live via the Rambus Investor Relations website (http://investor.rambus.com)
at 2:00 p.m. Pacific Time today. A replay will be available following
the call on Rambus' Investor Relations website and for one week at the
following numbers: (888) 203-1112 (domestic) or (719) 457-0820
(international) with ID# 5928140.
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.
RMBSFN
Condensed Consolidated Balance Sheets (In thousands) (Unaudited) |
| September 30,
2009 | | December 31,
2008 |
| ASSETS | | | |
| | | |
|
Current assets:
| | | |
|
Cash and cash equivalents
|
$
|
367,291
| |
$
|
116,241
|
|
Marketable securities
| |
131,192
| | |
229,612
|
|
Accounts receivable
| |
754
| | |
1,503
|
|
Prepaids and other current assets
| |
7,276
| | |
8,486
|
|
Deferred taxes
| | 892 | | | 88 |
|
Total current assets
| |
507,405
| | |
355,930
|
|
Restricted cash
| |
648
| | |
632
|
|
Deferred taxes, long-term
| |
1,069
| | |
1,857
|
|
Intangible assets, net
| |
6,585
| | |
7,244
|
|
Property and equipment, net
| |
15,941
| | |
22,290
|
|
Goodwill
| |
4,454
| | |
4,454
|
|
Other assets
| | 7,653 | | | 4,963 |
|
Total assets
| $ | 543,755 | | $ | 397,370 |
| | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | |
| | | |
|
Current liabilities:
| | | |
|
Accounts payable
|
$
|
11,162
| |
$
|
6,374
|
|
Accrued salaries and benefits
| |
8,458
| | |
9,859
|
|
Accrued litigation expenses
| |
6,220
| | |
14,265
|
|
Other accrued liabilities
| |
5,982
| | |
3,816
|
|
Convertible notes
| |
133,312
| | |
--
|
|
Deferred revenue
| | 395 | | | 1,787 |
|
Total current liabilities
| |
165,529
| | |
36,101
|
|
Long-term liabilities:
| | | |
|
Convertible notes
| |
109,333
| | |
125,474
|
|
Other long-term liabilities
| | 2,297 | | | 2,854 |
|
Total long-term liabilities
| | 111,630 | | | 128,328 |
|
Total stockholders' equity
| | 266,596 | | | 232,941 |
|
Total liabilities and stockholders' equity
| $ | 543,755 | | $ | 397,370 |
Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) |
| | | | |
| | Three Months Ended
September 30, | | Nine Months Ended
September 30, |
| | | 2009 | | | | 2008 | | | | 2009 | | | | 2008 | |
| | |
|
Revenue:
| | | | | | | | |
|
Royalties
| |
$
|
26,898
| | |
$
|
25,793
| | |
$
|
77,826
| | |
$
|
91,174
| |
|
Contract revenue
| | | 976 | | | | 3,635 | | | | 4,365 | | | | 13,707 | |
|
Total revenue
| | | 27,874 | | | | 29,428 | | | | 82,191 | | | | 104,881 | |
|
Costs and expenses:
| | | | | | | | |
|
Cost of contract revenue (1)
| | |
1,858
| | | |
4,611
| | | |
5,479
| | | |
18,411
| |
|
Research and development (1)
| | |
16,727
| | | |
17,511
| | | |
50,277
| | | |
59,048
| |
|
Marketing, general and administrative (1)
| | |
29,882
| | | |
31,288
| | | |
99,601
| | | |
88,377
| |
|
Restructuring costs (1)
| | |
--
| | | |
4,024
| | | |
--
| | | |
4,024
| |
|
Impairment of asset
| | |
--
| | | |
2,158
| | | |
--
| | | |
2,158
| |
|
Costs (recovery) of restatement and related legal activities
| | | 68 | | | | 392 | | | | (14,000 |
)
| | | 3,564 | |
|
Total costs and expenses
| | | 48,535 | | | | 59,984 | | | | 141,357 | | | | 175,582 | |
|
Operating loss
| | |
(20,661
|
)
| | |
(30,556
|
)
| | |
(59,166
|
)
| | |
(70,701
|
)
|
|
Interest and other income, net
| | |
891
| | | |
2,704
| | | |
3,504
| | | |
10,207
| |
|
Interest expense
| | | (7,641 |
)
| | | (3,002 |
)
| | | (13,128 |
)
| | | (8,834 |
)
|
|
Interest and other income (expense), net
| | | (6,750 |
)
| | | (298 |
)
| | | (9,624 |
)
| | | 1,373 | |
|
Loss before income taxes
| | |
(27,411
|
)
| | |
(30,854
|
)
| | |
(68,790
|
)
| | |
(69,328
|
)
|
|
Provision for income taxes
| | | 85 | | | | 92 | | | | 103 | | | | 114,287 | |
|
Net loss
| | $ | (27,496 |
)
| | $ | (30,946 |
)
| | $ | (68,893 |
)
| | $ | (183,615 |
)
|
|
Net loss per share:
| | | | | | | | |
|
Basic
| | $ | (0.26 |
)
| | $ | (0.29 |
)
| | $ | (0.66 |
)
| | $ | (1.75 |
)
|
|
Diluted
| | $ | (0.26 |
)
| | $ | (0.29 |
)
| | $ | (0.66 |
)
| | $ | (1.75 |
)
|
|
Weighted average shares used in per share calculation
| | | | | | | | |
|
Basic
| | | 105,182 | | | | 104,897 | | | | 104,761 | | | | 104,795 | |
|
Diluted
| | | 105,182 | | | | 104,897 | | | | 104,761 | | | | 104,795 | |
| | | | | | | | |
|
(1) Total stock-based compensation expense for the three and nine
month periods ended
September 30, 2009 and September 30, 2008 are presented as follows:
|
| | | | | | | | |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | | 2009 | | | | 2008 | | | | 2009 | | | | 2008 | |
|
Cost of contract revenue
| |
$
|
283
| | |
$
|
1,321
| | |
$
|
906
| | |
$
|
4,604
| |
|
Research and development
| |
$
|
2,332
| | |
$
|
3,326
| | |
$
|
7,286
| | |
$
|
10,997
| |
|
Marketing, general and administrative
| |
$
|
5,134
| | |
$
|
4,371
| | |
$
|
15,826
| | |
$
|
12,899
| |
|
Restructuring costs
| |
$
|
--
| | |
$
|
547
| | |
$
|
--
| | |
$
|
547
| |
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 2009