Expects net cash savings of $30-$35 million annually
SUNNYVALE, Calif.--(BUSINESS WIRE)--
Rambus Inc. (Nasdaq:RMBS), one of the world's premier technology
licensing companies, today announced a restructuring of the company.
With this restructuring and related cost saving measures, Rambus expects
an overall net cash savings of $30-$35 million annually. The majority of
the reduction in expenses are being made in general and administrative
(G&A), while the company continues to invest in strategic businesses.
"After reviewing our expenses in detail, we have concluded that the
support infrastructure can be reduced to improve profitability," said
Dr. Ronald Black, Rambus chief executive officer. "While we have refined
some of our R&D investments, we are preserving all of our strategic
initiatives as we believe they will drive significant growth in the
future."
The reductions in expense and associated workforce will begin in the
coming weeks and are expected to be completed during the fourth quarter
of 2012. As a result of this action, the company will reduce its
workforce by approximately 15%. Satish Rishi, Rambus chief financial
officer, stated: "We expect to take a charge for severance, on a cash
basis, of approximately $6 million over the next two quarters. We are
also reviewing our assets, businesses, and other contractual obligations
and may take additional charges by the end of the year. Excluding these
charges, and including additional investment in strategic initiatives,
we expect significant net cash savings of approximately $30-$35 million
annually."
As part of the restructuring, Rambus has created a new organizational
structure. The company is now organized into three business units
reporting to Dr. Black: (1) Memory and Interfaces, led by Kevin
Donnelly; (2) Cryptography Research Inc., led by Paul Kocher; and (3)
Lighting and Display Technologies, led by Jeffery Parker. The
engineering design teams, Rambus Labs, and other strategic initiatives
will be consolidated under Dr. Martin Scott, who will take the new role
of chief technology officer. In addition, the company is pleased to
introduce Jerome Nadel, who will be joining as chief marketing officer.
Also reporting to Dr. Black are: Satish Rishi, chief financial officer;
Laura Stark, head of Corporate Strategy; Michael Schroeder, head of
human resources; and Thomas Lavelle, general counsel.
"This new organization positions us well for future growth. The addition
of Jerome in the newly-created role of chief marketing officer, with his
vast international experience, will be instrumental in repositioning the
company and creating closer relationships with our customers," said Dr.
Black. "We'd like to thank both Sharon Holt and Christopher Pickett for
their valuable contributions as they have each announced their decision
to pursue non-competing opportunities outside of Rambus."
Forward-Looking Statements
This release contains forward-looking statements under the Private
Securities Litigation Reform Act of 1995 relating to Rambus' announced
restructuring, the reduction in employees, charges, expenses, cash
expenditures and cost savings, and growth strategies described above.
Such forward-looking statements are based on current expectations,
estimates and projections, management's beliefs and certain assumptions
made by Rambus' management. Actual results may differ materially.
Rambus' business generally is subject to a number of risks which are
described more fully in Rambus' periodic reports filed with the
Securities and Exchange Commission. Rambus undertakes no obligation to
update forward-looking statements to reflect events or circumstances
after the date hereof.
About Rambus Inc.
Founded in 1990, Rambus is one of the world's premier technology
licensing companies. As a company of inventors, Rambus focuses on the
development of technologies that enrich the end-user experience of
electronic systems. Its breakthrough innovations and solutions help
industry-leading companies bring superior products to market. Rambus
licenses both its world-class patent portfolio, as well as its family of
leadership and industry-standard solutions. Rambus has offices in
California, North Carolina, Ohio, India, Germany, Japan, Korea, and
Taiwan. Additional information is available at www.rambus.com.
RMBSFN
Rambus Public Relations
Linda Ashmore, 408-462-8411
linda_ashmore@rambus.com
or
Rambus
Investor Relations
Nicole Noutsios, 408-462-8050
nnoutsios@rambus.com
Source: Rambus Inc.
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