LOS ALTOS, Calif., Jan 28, 2010 (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 fourth quarter and the fiscal
year ended December 31, 2009.
Revenue for the fourth quarter of 2009 was $30.8 million, up 10.6%
sequentially from the third quarter of 2009 primarily due to higher
variable royalty revenue. As compared to the fourth quarter of 2008,
revenue was down 18.1% primarily due to the receipt of the previously
withheld royalties related to the now vacated Federal Trade Commission
("FTC") order in the fourth quarter of 2008. Revenue for fiscal year
2009 was $113.0 million, down 20.7% over the last fiscal year primarily
due to the expiration of the Elpida licensing agreement in the first
quarter of 2008.
"We finished the year with good revenue momentum in the fourth quarter
thanks to stronger patent and technology royalties from consumer
electronics shipments," said Harold Hughes, president and chief
executive officer at Rambus. "The agreement signed last week with
Samsung Electronics is transformational for Rambus and will accelerate
the market adoption of our patented innovations and leadership products."
Total costs and expenses for the fourth quarter of 2009 were
$47.5 million, which included $7.6 million of stock-based compensation
expenses and $0.5 million for previous stock-based compensation
restatement and related legal expenses. This is compared to total costs
and expenses of $48.5 million for the third quarter of 2009, which
included $7.7 million of stock-based compensation expenses and
$0.1 million for previous stock-based compensation restatement and
related legal expenses. General litigation expenses for the fourth
quarter were $10.6 million, a decrease of $1.4 million from the third
quarter of 2009. Total costs and expenses in the fourth quarter of last
year were $55.6 million, which included $8.7 million of stock-based
compensation expenses, $0.2 million of restructuring-related expenses
and a net recovery of $0.3 million of previous stock-based compensation
restatement and related legal expenses. General litigation expenses in
the fourth quarter of 2009 decreased $7.1 million from the fourth
quarter of 2008.
Total costs and expenses for year ended December 31, 2009 were $188.9
million, which included $31.6 million of stock-based compensation
expenses and a net recovery of $13.5 million for previous stock-based
compensation restatement and related legal expenses. This is compared to
total costs and expenses of $231.2 million for fiscal year 2008, which
included $37.2 million of stock-based compensation expenses, $4.2
million of restructuring-related expenses, $2.2 million of asset
impairment expenses and $3.3 million of previous stock-based
compensation restatement and related legal expenses. General litigation
expenses for fiscal year 2009 were $55.5 million, a decrease of
$0.2 million from fiscal year 2008.
Interest and other expense, net, for the fourth quarter of 2009 was $7.2
million as compared to $6.8 million in the third quarter of 2009 and
interest and other income, net, of $2.0 million in the fourth quarter of
2008 which included $2.5 million in gain from the repurchase of
convertible notes. Interest and other expense, net, for fiscal year 2009
was $16.9 million as compared to interest and other income, net, of $3.4
million for fiscal year 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
fourth quarter of 2008, $11.8 million for fiscal year 2008 and reduce
the gain from the repurchase of the convertible notes from $4.4 million
to $2.5 million for the fourth quarter and fiscal year ended 2008.
Net loss for the fourth quarter of 2009 was $23.3 million as compared to
a net loss of $27.5 million in the third quarter of 2009 and a net loss
of $15.5 million (adjusted for adoption of the FASB staff position) in
the fourth quarter of 2008. Net loss per share for the fourth quarter of
2009 was $0.22 as compared to a net loss per share of $0.26 in the third
quarter of 2009 and a net loss per share of $0.15 (adjusted for adoption
of the FASB staff position) for the fourth quarter of 2008. Net loss for
fiscal year 2009 was $92.2 million as compared to a net loss of $199.1
million (adjusted for adoption of the FASB staff position) for fiscal
year 2008. Net loss per share for fiscal year 2009 was $0.88 as compared
to a net loss per share of $1.90 (adjusted for adoption of the FASB
staff position) in fiscal year 2008.
Cash, cash equivalents, and marketable securities as of December 31,
2009 were $460.2 million, down approximately $38.3 million from
September 30, 2009 and up approximately $114.3 million from December 31,
2008. During fiscal year 2009, the Company received approximately $168.2
million net proceeds related to the issuance of the 5% Convertible
Senior Notes due 2014, $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 offset by cash used to
acquire technology and a portfolio of advanced lighting and
optoelectronics patents from Global Lighting Technologies Inc. of $26.0
million and other intangible assets of $2.5 million as well as $4.0
million of interest payment related to the 5% Convertible Senior Notes
due 2014.
The conference call discussing 2009 fourth quarter and year-end 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# 4989652.
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) |
|
| | December 31, 2009 | | December 31, 2008 |
| ASSETS | | | | |
| | | | |
|
Current assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
289,073
| |
$
|
116,241
|
|
Marketable securities
| | |
171,120
| | |
229,612
|
|
Accounts receivable
| | |
949
| | |
1,503
|
|
Prepaids and other current assets
| | |
8,700
| | |
8,486
|
|
Deferred taxes
| | | 129 | | | 88 |
|
Total current assets
| | |
469,971
| | |
355,930
|
|
Restricted cash
| | |
639
| | |
632
|
|
Deferred taxes, long-term
| | |
2,034
| | |
1,857
|
|
Intangible assets, net
| | |
21,960
| | |
7,244
|
|
Property and equipment, net
| | |
38,966
| | |
22,290
|
|
Goodwill
| | |
15,254
| | |
4,454
|
|
Other assets
| | | 7,045 | | | 4,963 |
|
Total assets
| | $ | 555,869 | | $ | 397,370 |
| | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | |
| | | | |
|
Current liabilities:
| | | | |
|
Accounts payable
| |
$
|
8,972
| |
$
|
6,374
|
|
Accrued salaries and benefits
| | |
6,435
| | |
9,859
|
|
Accrued litigation expenses
| | |
5,147
| | |
14,265
|
|
Non-cash obligation for construction in progress
| | |
25,100
| | |
--
|
|
Other accrued liabilities
| | |
4,186
| | |
3,816
|
|
Convertible notes
| | |
136,032
| | |
--
|
|
Deferred revenue
| | | 320 | | | 1,787 |
|
Total current liabilities
| | |
186,192
| | |
36,101
|
|
Long-term liabilities:
| | | | |
|
Convertible notes
| | |
112,012
| | |
125,474
|
|
Other long-term liabilities
| | | 2,338 | | | 2,854 |
|
Total long-term liabilities
| | | 114,350 | | | 128,328 |
|
Total stockholders' equity
| | | 255,327 | | | 232,941 |
|
Total liabilities and stockholders' equity
| | $ | 555,869 | | $ | 397,370 |
Condensed Consolidated Statements of Operations |
(In thousands, except per share amounts) |
(Unaudited) |
|
| | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| | | 2009 | | | | 2008 | | | | 2009 | | | | 2008 | |
| | |
|
Revenue:
| | | | | | | | |
|
Royalties
| |
$
|
30,175
| | |
$
|
35,736
| | |
$
|
108,001
| | |
$
|
126,910
| |
|
Contract revenue
| | | 641 | | | | 1,877 | | | | 5,006 | | | | 15,584 | |
|
Total revenue
| | | 30,816 | | | | 37,613 | | | | 113,007 | | | | 142,494 | |
|
Costs and expenses:
| | | | | | | | |
|
Cost of contract revenue (1)
| | |
1,397
| | | |
2,892
| | | |
6,876
| | | |
21,303
| |
|
Research and development (1)
| | |
16,975
| | | |
17,174
| | | |
67,252
| | | |
76,222
| |
|
Marketing, general and administrative (1)
| | |
28,598
| | | |
35,700
| | | |
128,199
| | | |
124,077
| |
|
Costs (recovery) of restatement and related legal activities
| | |
542
| | | |
(302
|
)
| | |
(13,458
|
)
| | |
3,262
| |
|
Restructuring costs (1)
| | |
--
| | | |
161
| | | |
--
| | | |
4,185
| |
|
Impairment of asset
| | | -- | | | | -- | | | | -- | | | | 2,158 | |
|
Total costs and expenses
| | | 47,512 | | | | 55,625 | | | | 188,869 | | | | 231,207 | |
|
Operating loss
| | |
(16,696
|
)
| | |
(18,012
|
)
| | |
(75,862
|
)
| | |
(88,713
|
)
|
|
Interest and other income, net
| | |
581
| | | |
4,992
| | | |
4,085
| | | |
15,199
| |
|
Interest expense
| | | (7,822 |
)
| | | (2,971 |
)
| | | (20,950 |
)
| | | (11,805 |
)
|
|
Interest and other income (expense), net
| | | (7,241 |
)
| | | 2,021 | | | | (16,865 |
)
| | | 3,394 | |
|
Loss before income taxes
| | |
(23,937
|
)
| | |
(15,991
|
)
| | |
(92,727
|
)
| | |
(85,319
|
)
|
|
Provision for (benefit from) income taxes
| | | (644 | ) | | | (496 | ) | | | (541 | ) | | | 113,791 | |
|
Net loss
| | $ | (23,293 |
)
| | $ | (15,495 |
)
| | $ | (92,186 |
)
| | $ | (199,110 |
)
|
|
Net loss per share:
| | | | | | | | |
|
Basic
| | $ | (0.22 |
)
| | $ | (0.15 |
)
| | $ | (0.88 |
)
| | $ | (1.90 |
)
|
|
Diluted
| | $ | (0.22 |
)
| | $ | (0.15 |
)
| | $ | (0.88 |
)
| | $ | (1.90 |
)
|
|
Weighted average shares used in per share calculation
| | | | | | | | |
|
Basic
| | | 105,727 | | | | 103,915 | | | | 105,011 | | | | 104,574 | |
|
Diluted
| | | 105,727 | | | | 103,915 | | | | 105,011 | | | | 104,574 | |
| | | | | | | | |
(1) Total stock-based compensation expense for the three and
twelve month periods ended December 31, 2009 and December 31, 2008
are presented as follows:
|
| | | | | | | | |
| | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| | | 2009 | | | | 2008 | | | | 2009 | | | | 2008 | |
|
Cost of contract revenue
| |
$
|
96
| | |
$
|
583
| | |
$
|
1,002
| | |
$
|
5,187
| |
|
Research and development
| |
$
|
2,429
| | |
$
|
2,491
| | |
$
|
9,715
| | |
$
|
13,488
| |
|
Marketing, general and administrative
| |
$
|
5,042
| | |
$
|
5,593
| | |
$
|
20,868
| | |
$
|
18,492
| |
|
Restructuring costs
| |
$
|
--
| | |
$
|
--
| | |
$
|
--
| | |
$
|
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 2010