Revenue of $90.9 million and diluted income per share of $0.29 for
the fourth quarter; revenue of $323.4 million and diluted income per
share of $1.30 for the year
SUNNYVALE, Calif.--(BUSINESS WIRE)--
Rambus Inc. (NASDAQ:RMBS), one of the world's premier technology
licensing companies, today reported financial results for the fourth
quarter and the fiscal year ended 2010.
Revenue for the fourth quarter of 2010 was $90.9 million, up 186%
sequentially from the third quarter of 2010 primarily due to the revenue
related to the Elpida, Renesas and Nvidia license agreements. As
compared to the fourth quarter of 2009, revenue was up 195% primarily
due to the revenue recognized from the agreements signed with Samsung
and Elpida during 2010. Revenue for the year ended December 31, 2010 was
$323.4 million, up 186% over the prior year, which was also due to the
agreements signed with Samsung and Elpida during 2010.
"2010 was a great year for Rambus. We made tremendous progress, from the
continued demonstration of our technology leadership to the execution of
our licensing strategy," said Harold Hughes, president and chief
executive officer at Rambus. "We estimate that the many licenses signed
in 2010 may generate as much as $1.3 billion in royalties over the life
of the agreements."
Total operating costs and expenses for the fourth quarter of 2010 were
$48.0 million, which included a $10.3 million gain related to the
Samsung settlement, $7.3 million of stock-based compensation expenses
and $0.8 million for previous stock-based compensation restatement and
related legal expenses. This is compared to total operating costs and
expenses for the third quarter of 2010 of $43.2 million, which included
a $10.3 million gain related to the Samsung settlement, $7.5 million of
stock-based compensation expenses and $1.2 million for previous
stock-based compensation restatement and related legal expenses. General
litigation expenses for the fourth quarter of 2010 were $5.8 million, an
increase of $1.2 million from the third quarter of 2010.
Total operating costs and expenses in 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. General litigation expenses in
the fourth quarter of 2010 decreased $4.7 million from the fourth
quarter of 2009.
Total operating costs and expenses for the year ended December 31, 2010
were $96.5 million, which included a $126.8 million gain related to the
Samsung settlement, $30.5 million of stock-based compensation expenses
and $4.2 million for previous stock-based compensation restatement and
related legal expenses. This is compared to total operating costs and
expenses of $188.9 million for the prior year, which included $31.6
million of stock-based compensation expenses and a net recovery of $13.5
million of previous stock-based compensation restatement and related
legal expenses. General litigation expenses for the year ended December
31, 2010 were $22.7 million, a decrease of $32.8 million from the prior
year.
Interest and other expense, net, for the fourth quarter of 2010 was $5.2
million as compared to $4.6 million in the third quarter of 2010 and
$7.2 million in the fourth quarter of 2009. Interest and other expense,
net, for the year ended December 31, 2010 was $18.8 million as compared
to $16.9 million for the same period of 2009.
During the quarter ended December 31, 2010, the Company paid withholding
taxes of $4.2 million. The Company recorded a provision for income taxes
of $4.6 million for the fourth quarter of 2010, which is primarily
comprised of the withholding 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 $4.4 million for the quarter ended September 30,
2010 and a benefit from income taxes of $0.6 million for the quarter
ended December 31, 2009.
During the year ended December 31, 2010, the Company paid withholding
taxes of $55.1 million. The Company recorded a provision for income
taxes of $57.1 million for the year ended December 31, 2010, which is
primarily comprised of the withholding taxes. By comparison, the Company
recorded a benefit from income taxes of $0.5 million for the year ended
December 31, 2009.
Net income for the fourth quarter of 2010 was $33.1 million as compared
to a net loss of $20.6 million in the third quarter of 2010 and a net
loss of $23.3 million in the fourth quarter of 2009. Diluted net income
per share for the fourth quarter of 2010 was $0.29 as compared to a net
loss per share of $0.18 in the third quarter of 2010 and a net loss per
share of $0.22 for the fourth quarter of 2009.
Net income for the year ended December 31, 2010 was $150.9 million as
compared to a net loss of $92.2 million for the same period of 2009.
Diluted net income per share for the year ended December 31, 2010 was
$1.30 as compared to a net loss per share of $0.88 for the prior year.
Cash, cash equivalents, and marketable securities as of December 31,
2010 were $512.0 million, an increase of approximately $27.1 million
from September 30, 2010. Additionally, $17.9 million was used in the
acquisition of a business and intellectual property during the fourth
quarter of 2010. The Company also paid $4.3 million of interest related
to the 5% Convertible Senior Notes due 2014 during the fourth quarter of
2010.
The conference call discussing 2010 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: (800) 642-1687 (domestic) or (706) 645-9291
(international) with ID#36198129.
Forward Looking Statements
This press release contains forward-looking statements related to our
estimates of aggregate payments under our various license agreements
signed in 2010. Actual results may differ materially from those
contained in the forward-looking statements. Please refer to the
documents Rambus files with the SEC, including Rambus' most recent Form
10-K and Form 10-Q. These SEC filings contain and identify important
factors that could cause Rambus' consolidated financial results to
differ materially from those contained in Rambus' forward-looking
statements. Although Rambus believes that the expectations reflected in
the forward-looking statements are reasonable, Rambus cannot guarantee
future results, levels of activity, performance or achievements. Rambus
is under no duty to update any of the forward-looking statements after
the date of this press release to conform to actual results. Our
business generally is subject to a number of risks which are described
more fully in our SEC filings including our Forms 10-K and 10-Q.
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 enriching the end-user experience of electronic
systems. Additional information is available at www.rambus.com.
RMBSFN
|
|
|
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
2010
|
|
December 31,
2009
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
215,262
|
|
$
|
289,073
|
|
Marketable securities
|
|
|
296,747
|
|
|
171,120
|
|
Accounts receivable
|
|
|
2,600
|
|
|
949
|
|
Prepaids and other current assets
|
|
|
10,898
|
|
|
8,700
|
|
Deferred taxes
|
|
|
2,420
|
|
|
129
|
|
Total current assets
|
|
|
527,927
|
|
|
469,971
|
|
Restricted cash
|
|
|
—
|
|
|
639
|
|
Deferred taxes, long-term
|
|
|
2,974
|
|
|
2,034
|
|
Intangible assets, net
|
|
|
40,986
|
|
|
21,660
|
|
Property and equipment, net
|
|
|
67,770
|
|
|
38,966
|
|
Goodwill
|
|
|
18,154
|
|
|
15,554
|
|
Other assets
|
|
|
5,361
|
|
|
7,045
|
|
Total assets
|
|
$
|
663,172
|
|
$
|
555,869
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
5,952
|
|
$
|
8,972
|
|
Accrued salaries and benefits
|
|
|
31,634
|
|
|
6,435
|
|
Accrued litigation expenses
|
|
|
4,060
|
|
|
5,147
|
|
Other accrued liabilities
|
|
|
14,165
|
|
|
4,506
|
|
Convertible notes
|
|
|
—
|
|
|
136,032
|
|
Non-cash obligation for construction in progress
|
|
|
—
|
|
|
25,100
|
|
Total current liabilities
|
|
|
55,811
|
|
|
186,192
|
|
Long-term liabilities:
|
|
|
|
|
|
Convertible notes
|
|
|
121,500
|
|
|
112,012
|
|
Long-term imputed financing obligation
|
|
|
27,899
|
|
|
—
|
|
Other long-term liabilities
|
|
|
9,679
|
|
|
2,338
|
|
Total long-term liabilities
|
|
|
159,078
|
|
|
114,350
|
|
Contingently redeemable common stock
|
|
|
113,500
|
|
|
—
|
|
Total stockholders' equity
|
|
|
334,783
|
|
|
255,327
|
|
Total liabilities and stockholders' equity
|
|
$
|
663,172
|
|
$
|
555,869
|
|
|
|
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Royalties
|
|
$
|
90,242
|
|
|
$
|
30,175
|
|
|
$
|
320,155
|
|
|
$
|
108,001
|
|
|
Contract revenue
|
|
|
679
|
|
|
|
641
|
|
|
|
3,235
|
|
|
|
5,006
|
|
|
Total revenue
|
|
|
90,921
|
|
|
|
30,816
|
|
|
|
323,390
|
|
|
|
113,007
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of revenue (1)
|
|
|
1,911
|
|
|
|
1,397
|
|
|
|
6,937
|
|
|
|
6,876
|
|
|
Research and development (1)
|
|
|
25,028
|
|
|
|
16,975
|
|
|
|
92,706
|
|
|
|
67,252
|
|
|
Marketing, general and administrative (1)
|
|
|
30,602
|
|
|
|
28,598
|
|
|
|
119,475
|
|
|
|
128,199
|
|
|
Costs (recoveries) of restatement and related legal activities
|
|
|
797
|
|
|
|
542
|
|
|
|
4,190
|
|
|
|
(13,458
|
)
|
|
Gain from settlement
|
|
|
(10,300
|
)
|
|
|
—
|
|
|
|
(126,800
|
)
|
|
|
—
|
|
|
Total operating costs and expenses
|
|
|
48,038
|
|
|
|
47,512
|
|
|
|
96,508
|
|
|
|
188,869
|
|
|
Operating income (loss)
|
|
|
42,883
|
|
|
|
(16,696
|
)
|
|
|
226,882
|
|
|
|
(75,862
|
)
|
|
Interest and other income (expense), net
|
|
|
(192
|
)
|
|
|
581
|
|
|
|
861
|
|
|
|
4,085
|
|
|
Interest expense
|
|
|
(4,990
|
)
|
|
|
(7,822
|
)
|
|
|
(19,699
|
)
|
|
|
(20,950
|
)
|
|
Interest and other expense, net
|
|
|
(5,182
|
)
|
|
|
(7,241
|
)
|
|
|
(18,838
|
)
|
|
|
(16,865
|
)
|
|
Income (loss) before income taxes
|
|
|
37,701
|
|
|
|
(23,937
|
)
|
|
|
208,044
|
|
|
|
(92,727
|
)
|
|
Provision for (benefit from) income taxes
|
|
|
4,617
|
|
|
|
(644
|
)
|
|
|
57,127
|
|
|
|
(541
|
)
|
|
Net income (loss)
|
|
$
|
33,084
|
|
|
$
|
(23,293
|
)
|
|
$
|
150,917
|
|
|
$
|
(92,186
|
)
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.30
|
|
|
$
|
(0.22
|
)
|
|
$
|
1.34
|
|
|
$
|
(0.88
|
)
|
|
Diluted
|
|
$
|
0.29
|
|
|
$
|
(0.22
|
)
|
|
$
|
1.30
|
|
|
$
|
(0.88
|
)
|
|
Weighted average shares used in per share calculation
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
111,530
|
|
|
|
105,727
|
|
|
|
112,456
|
|
|
|
105,011
|
|
|
Diluted
|
|
|
114,461
|
|
|
|
105,727
|
|
|
|
115,884
|
|
|
|
105,011
|
|
|
|
|
|
|
|
|
|
|
|
|
____________
|
|
|
|
|
|
|
|
|
|
(1) Total stock-based compensation expense for the three and
twelve month periods ended December 31, 2010 and December 31, 2009
are presented as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Cost of revenue
|
|
$
|
27
|
|
|
$
|
96
|
|
|
$
|
173
|
|
|
$
|
1,002
|
|
|
Research and development
|
|
$
|
2,423
|
|
|
$
|
2,429
|
|
|
$
|
10,165
|
|
|
$
|
9,715
|
|
|
Marketing, general and administrative
|
|
$
|
4,870
|
|
|
$
|
5,042
|
|
|
$
|
20,210
|
|
|
$
|
20,868
|
|
Rambus Inc.
Linda Ashmore, 408-462-8411 (Public Relations)
lashmore@rambus.com
Nicole
Noutsios, 408-462-8050 (Investor Relations)
nnoutsios@rambus.com
Source: Rambus Inc.
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