LOS ALTOS, Calif., Jul 22, 2010 (BUSINESS WIRE) -- Rambus Inc. (NASDAQ:RMBS), one of the world's premier technology
licensing companies, today reported financial results for the second
quarter of 2010.
Revenue for the second quarter of 2010 was $38.9 million, down 76.0%
sequentially from the first quarter of 2010 and up 44.0% as compared to
the second quarter of 2009, primarily due to the revenue recognized from
the agreements signed with Samsung during the first quarter of 2010.
Revenue for the six months ended June 30, 2010 was $200.7 million, up
269.5% over the same period of last year, also due to the agreements
signed with Samsung during the first quarter of 2010.
"This quarter showcased great progress in our diversification strategy
with the GE Lighting license agreement," said Harold Hughes, president
and chief executive officer at Rambus. "We also saw solid patent and
solutions license revenues driven by strong worldwide sales of
computers, consumer electronics and game consoles."
Total operating costs and expenses for the second quarter of 2010 were
$45.5 million, which included a $10.3 million gain related to the
Samsung settlement, $7.9 million of stock-based compensation expenses
and $1.6 million for previous stock-based compensation restatement and
related legal expenses. This is compared to total operating costs and
expenses (recoveries) for the first quarter of 2010 which included a
recovery of $40.3 million, comprised of a $95.9 million gain related to
the Samsung settlement, $7.8 million of stock-based compensation
expenses and $0.5 million for previous stock-based compensation
restatement and related legal expenses. General litigation expenses for
the second quarter were $5.2 million, a decrease of $1.8 million from
the first quarter of 2010.
Total operating costs and expenses in the second quarter of last year
were $49.3 million, which included $7.9 million of stock-based
compensation expenses and a net recovery of $0.4 million of previous
stock-based compensation restatement and related legal expenses as a
result of reimbursements from insurance carriers. General litigation
expenses in the second quarter of 2010 decreased $9.8 million from the
second quarter of 2009.
Total operating costs and expenses for the six months ended June 30,
2010 were $5.2 million, which included a $106.2 million gain related to
the Samsung settlement, $15.8 million of stock-based compensation
expenses and $2.2 million for previous stock-based compensation
restatement and related legal expenses. This is compared to total
operating costs and expenses of $92.8 million for the same period of
2009, which included $16.3 million of stock-based compensation expenses
and a net recovery of $14.1 million of previous stock-based compensation
restatement and related legal expenses. General litigation expenses for
the six months ended June 30, 2010 were $12.2 million, a decrease of
$20.8 million from the same period in 2009.
Interest and other expense, net, for the second quarter of 2010 was $3.4
million as compared to $5.6 million in the first quarter of 2010 and
$1.6 million in the second quarter of 2009. Interest and other expense,
net, for the six months ended June 30, 2010 was $9.0 million as compared
to $2.9 million for the same period of 2009.
During the quarter ended June 30, 2010, the Company paid withholding
taxes of $4.1 million. The Company recorded a provision for income taxes
of $2.4 million for the second quarter of 2010, which is primarily
comprised of the withholding taxes offset by a reduction of alternative
minimum taxes. As the Company continues to maintain a valuation
allowance against its U.S. deferred tax assets, the Company's tax
provision is based on its anticipated cash tax payments related to the
quarter. By comparison, the Company recorded a provision for income
taxes of $45.7 million for the quarter ended March 31, 2010 and a
provision for income taxes of $25 thousand for the quarter ended June
30, 2009.
During the six months ended June 30, 2010, the Company paid withholding
taxes of $46.8 million. The Company recorded a provision for income
taxes of $48.1 million for the six months ended June 30, 2010, which is
primarily comprised of the withholding taxes and alternative minimum
taxes. By comparison, the Company recorded a provision for income taxes
of $18 thousand for the six months ended June 30, 2009.
Net loss for the second quarter of 2010 was $12.5 million as compared to
a net income of $150.9 million in the first quarter of 2010 and a net
loss of $24.0 million in the second quarter of 2009. Diluted net loss
per share for the second quarter of 2010 was $0.11 as compared to a net
income per share of $1.28 in the first quarter of 2010 and a net loss
per share of $0.23 for the second quarter of 2009.
Net income for the six months ended June 30, 2010 was $138.4 million as
compared to a net loss of $41.4 million for the same period of 2009.
Diluted net income per share for the six months ended June 30, 2010 was
$1.18 as compared to a net loss per share of $0.40 for the same period
of 2009.
Cash, cash equivalents, and marketable securities as of June 30, 2010
were $597.6 million, a decrease of approximately $71.1 million from
March 31, 2010. During the second quarter of 2010, the Company
repurchased shares of its common stock having an aggregate value of
$68.8 million; additionally $4.6 million was used in the acquisition of
businesses and intellectual property.
The conference call discussing 2010 second quarter 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# 86009440.
About Rambus Inc.
Rambus is one of the world's premier technology licensing companies.
Founded in 1990, the Company specializes in the invention and design of
architectures focused on enhancing the end-user experience of computing,
communications and consumer electronics applications. Additional
information is available at www.rambus.com.
RMBSFN
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Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
June 30,
2010
|
|
December 31,
2009
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
334,536
|
|
$
|
289,073
|
|
Marketable securities
|
|
|
263,073
|
|
|
171,120
|
|
Accounts receivable
|
|
|
244
|
|
|
949
|
|
Prepaids and other current assets
|
|
|
10,417
|
|
|
8,700
|
|
Deferred taxes
|
|
|
654
|
|
|
129
|
|
Total current assets
|
|
|
608,924
|
|
|
469,971
|
|
Restricted cash
|
|
|
664
|
|
|
639
|
|
Deferred taxes, long-term
|
|
|
1,558
|
|
|
2,034
|
|
Intangible assets, net
|
|
|
25,153
|
|
|
21,660
|
|
Property and equipment, net
|
|
|
39,016
|
|
|
38,966
|
|
Goodwill
|
|
|
15,554
|
|
|
15,554
|
|
Other assets
|
|
|
6,512
|
|
|
7,045
|
|
Total assets
|
|
$
|
697,381
|
|
$
|
555,869
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
9,433
|
|
$
|
8,972
|
|
Accrued salaries and benefits
|
|
|
18,926
|
|
|
6,435
|
|
Accrued litigation expenses
|
|
|
3,032
|
|
|
5,147
|
|
Non-cash obligation for construction in progress
|
|
|
25,900
|
|
|
25,100
|
|
Other accrued liabilities
|
|
|
6,890
|
|
|
4,506
|
|
Convertible notes
|
|
|
--
|
|
|
136,032
|
|
Total current liabilities
|
|
|
64,181
|
|
|
186,192
|
|
Long-term liabilities:
|
|
|
|
|
|
Convertible notes
|
|
|
116,184
|
|
|
112,012
|
|
Other long-term liabilities
|
|
|
2,974
|
|
|
2,338
|
|
Total long-term liabilities
|
|
|
119,158
|
|
|
114,350
|
|
Contingently redeemable common stock
|
|
|
113,500
|
|
|
--
|
|
Total stockholders' equity
|
|
|
400,542
|
|
|
255,327
|
|
Total liabilities and stockholders' equity
|
|
$
|
697,381
|
|
$
|
555,869
|
|
|
|
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Royalties
|
|
$
|
38,192
|
|
|
$
|
24,759
|
|
|
$
|
198,734
|
|
|
$
|
50,928
|
|
|
Contract revenue
|
|
|
670
|
|
|
|
2,224
|
|
|
|
1,992
|
|
|
|
3,389
|
|
|
Total revenue
|
|
|
38,862
|
|
|
|
26,983
|
|
|
|
200,726
|
|
|
|
54,317
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of revenue (1)
|
|
|
1,804
|
|
|
|
1,438
|
|
|
|
3,658
|
|
|
|
3,621
|
|
|
Research and development (1)
|
|
|
22,985
|
|
|
|
15,713
|
|
|
|
44,676
|
|
|
|
33,550
|
|
|
Marketing, general and administrative (1)
|
|
|
29,408
|
|
|
|
32,563
|
|
|
|
60,935
|
|
|
|
69,719
|
|
|
Costs (recoveries) of restatement and related legal activities
|
|
|
1,638
|
|
|
|
(429
|
)
|
|
|
2,164
|
|
|
|
(14,068
|
)
|
|
Gain from settlement
|
|
|
(10,300
|
)
|
|
|
--
|
|
|
|
(106,200
|
)
|
|
|
--
|
|
|
Total operating costs and expenses
|
|
|
45,535
|
|
|
|
49,285
|
|
|
|
5,233
|
|
|
|
92,822
|
|
|
Operating income (loss)
|
|
|
(6,673
|
)
|
|
|
(22,302
|
)
|
|
|
195,493
|
|
|
|
(38,505
|
)
|
|
Interest and other income, net
|
|
|
316
|
|
|
|
1,173
|
|
|
|
741
|
|
|
|
2,613
|
|
|
Interest expense
|
|
|
(3,740
|
)
|
|
|
(2,817
|
)
|
|
|
(9,756
|
)
|
|
|
(5,487
|
)
|
|
Interest and other expense, net
|
|
|
(3,424
|
)
|
|
|
(1,644
|
)
|
|
|
(9,015
|
)
|
|
|
(2,874
|
)
|
|
Income (loss) before income taxes
|
|
|
(10,097
|
)
|
|
|
(23,946
|
)
|
|
|
186,478
|
|
|
|
(41,379
|
)
|
|
Provision for income taxes
|
|
|
2,393
|
|
|
|
25
|
|
|
|
48,069
|
|
|
|
18
|
|
|
Net income (loss)
|
|
$
|
(12,490
|
)
|
|
$
|
(23,971
|
)
|
|
$
|
138,409
|
|
|
$
|
(41,397
|
)
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.11
|
)
|
|
$
|
(0.23
|
)
|
|
$
|
1.22
|
|
|
$
|
(0.40
|
)
|
|
Diluted
|
|
$
|
(0.11
|
)
|
|
$
|
(0.23
|
)
|
|
$
|
1.18
|
|
|
$
|
(0.40
|
)
|
|
Weighted average shares used in per share calculation
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
113,321
|
|
|
|
104,675
|
|
|
|
113,227
|
|
|
|
104,536
|
|
|
Diluted
|
|
|
113,321
|
|
|
|
104,675
|
|
|
|
117,434
|
|
|
|
104,536
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total stock-based compensation expense for the three and six
month periods ended June 30, 2010 and June 30, 2009 are presented
as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
2010
|
|
|
|
2009
|
|
|
Cost of revenue
|
|
$
|
29
|
|
|
$
|
233
|
|
|
$
|
129
|
|
|
$
|
623
|
|
|
Research and development
|
|
$
|
2,703
|
|
|
$
|
2,214
|
|
|
$
|
5,272
|
|
|
$
|
4,954
|
|
|
Marketing, general and administrative
|
|
$
|
5,199
|
|
|
$
|
5,403
|
|
|
$
|
10,364
|
|
|
$
|
10,692
|
|
SOURCE: Rambus Inc.
Rambus Inc.
Linda Ashmore, 650-947-5411 (Public Relations)
lashmore@rambus.com
Nicole Noutsios, 650-947-5050 (Investor Relations)
nnoutsios@rambus.com
Copyright Business Wire 2010