Business and Financial Highlights:
-
Signed comprehensive ten-year agreement with Samsung Electronics and
seven-year license agreement with Micron Technology
-
Generated annual revenue of $271.5 million and annual non-GAAP
customer licensing income of $281.6 million; quarterly revenue of
$73.4 million and quarterly non-GAAP customer licensing income of
$73.9 million
-
Fourth quarter GAAP diluted net loss per share of $0.09; fourth
quarter non-GAAP diluted net income per share of $0.14
-
Annual GAAP diluted net loss per share of $0.30; annual non-GAAP
diluted net income per share of $0.47
SUNNYVALE, Calif.--(BUSINESS WIRE)--
Rambus Inc. (NASDAQ:RMBS), the innovative technology solutions company
that brings invention to market, today reported financial results for
the fourth quarter and year ended December 31, 2013.
GAAP Financial Results:
Revenue for the fourth quarter of 2013 was $73.4 million, nearly flat on
a sequential basis from the third quarter of 2013. As compared to the
fourth quarter of 2012, revenue was up 28% primarily due to the new
license agreements signed with SK Hynix, Micron Technology, ST
Microelectronics and LSI Corporation during 2013.
Revenue for the year ended December 31, 2013 was $271.5 million, up 16%
over the same period of last year, primarily due to new license
agreements signed with SK Hynix, Micron Technology, ST Microelectronics
and LSI Corporation during 2013.
Total operating costs and expenses for the fourth quarter of 2013 were
$67.2 million, 5% higher than the previous quarter. The Company recently
revised its business strategy, and as a result, has recorded an
impairment charge of $9.7 million primarily related to the long-lived
assets of its LDT business and a restructuring charge of $2.2 million in
the fourth quarter of 2013. In addition to these impairment and
restructuring charges, fourth quarter operating costs and expenses of
$67.2 million also included $0.8 million of general litigation expenses,
$3.1 million of stock-based compensation expenses, $7.5 million of
amortization expenses and $1.5 million of retention bonuses from
acquisitions. This is compared to total operating costs and expenses for
the third quarter of 2013 of $64.2 million which included $0.7 million
of general litigation expenses, $3.4 million of stock-based compensation
expenses, $8.1 million of impairment of goodwill, $1.1 million of
restructuring charges, $7.4 million of amortization expenses and $1.5
million of retention bonuses from acquisitions. Total operating costs
and expenses for the fourth quarter of 2012 were $61.5 million, which
included $2.1 million of general litigation expenses, $4.5 million of
stock-based compensation expenses, $0.7 million of restructuring
charges, $6.8 million of amortization expenses and $4.2 million of
retention bonuses from acquisitions. The change in total operating costs
and expenses in the fourth quarter of 2013 as compared to the fourth
quarter of 2012 was primarily due to higher cost of sales related to
lighting products, restructuring charges and impairment of long-lived
assets. This was partially offset by lower retention bonuses from
acquisitions, lower stock-based compensation, lower prototyping costs
and lower general litigation expenses in the fourth quarter of 2013.
Total operating costs and expenses for the year ended December 31, 2013
were $249.0 million, which included a credit of $2.6 million of general
litigation expenses (primarily due to the reversal of accrued related
litigation costs of $9.0 million related to the settlement of litigation
with SK Hynix and Micron Technology), $15.0 million of stock-based
compensation expenses, $17.8 million of impairment of goodwill and
long-lived assets, $5.5 million of restructuring charges, $28.9 million
of amortization expenses and $10.4 million of retention bonuses from
acquisitions. This is compared to total operating costs and expenses for
the year ended December 31, 2012 of $324.5 million, which included $13.2
million of general litigation expenses, $22.5 million of stock-based
compensation expenses, $35.5 million of impairment of goodwill and
long-lived assets, $7.3 million of restructuring charges, $30.3 million
of amortization expenses and $25.7 million of retention bonuses from
acquisitions. The change in total operating costs and expenses was
primarily due to lower impairment of goodwill and long-lived assets,
lower retention bonuses and amortization expenses from acquisitions,
lower headcount related costs, lower general litigation expenses and
lower stock-based compensation. This was partially offset by a higher
bonus accrual and cost of sales related to lighting products.
Net loss for the fourth quarter of 2013 was $9.8 million as compared to
net loss of $5.7 million in the third quarter of 2013 and net loss of
$16.1 million in the fourth quarter of 2012. Diluted net loss per share
for the fourth quarter of 2013 was $0.09 as compared to diluted net loss
per share of $0.05 in the third quarter of 2013 and diluted net loss per
share of $0.14 in the fourth quarter of 2012.
Net loss for the year ended December 31, 2013 was $33.7 million as
compared to net loss of $134.3 million for the year ended December 31,
2012. Diluted net loss per share for the year ended December 31, 2013
was $0.30 as compared to diluted net loss per share of $1.21 for the
year ended December 31, 2012.
Non-GAAP Financial Results (1):
Customer licensing income in the fourth quarter of 2013 was $73.9
million, slightly down sequentially from the third quarter of 2013. As
compared to the fourth quarter of 2012, customer licensing income was up
20% primarily for the reasons outlined in the Company's discussion of
GAAP financial results above.
Customer licensing income for the year ended December 31, 2013 was
$281.6 million, up 14% over the same period of last year, primarily for
the reasons outlined in the Company's discussion of GAAP financial
results above.
Total non-GAAP operating costs and expenses in the fourth quarter of
2013 were $44.2 million, which included non-GAAP general litigation
expenses of $1.4 million. This is compared to total non-GAAP operating
costs and expenses for the third quarter of 2013 of $43.0 million, which
included general litigation expenses of $0.7 million. Total non-GAAP
operating costs and expenses in the fourth quarter of 2012 were $45.2
million, which included general litigation expenses of $2.1 million.
Total non-GAAP operating costs and expenses for the year ended December
31, 2013 were $182.8 million as compared to $202.9 million for the year
ended December 31, 2012 due primarily to lower headcount related costs,
lower general litigation expenses, lower general and patent legal
expenses and lower consulting expenses. This was partially offset by a
higher bonus accrual and cost of sales related to lighting products.
Non-GAAP net income in the fourth quarter of 2013 was $16.5 million as
compared to non-GAAP net income of $17.9 million in the third quarter of
2013 and non-GAAP net income of $8.3 million in the fourth quarter of
2012. Non-GAAP diluted net income per share was $0.14 in the fourth
quarter of 2013 as compared to $0.15 in the third quarter of 2013 and
$0.07 in the fourth quarter of 2012.
Non-GAAP net income for the year ended December 31, 2013 was $54.4
million as compared to $19.9 million in the same period of 2012.
Non-GAAP diluted net income per share for the year ended December 31,
2013 was $0.47 as compared to $0.17 for the same period of 2012.
Other Financial Highlights:
Cash, cash equivalents, and marketable securities as of December 31,
2013 were $387.7 million, an increase of $21.3 million from
September 30, 2013. During the fourth quarter of 2013, the Company paid
$4.3 million of interest expense related to the Company's convertible
notes due in June 2014.
As of December 31, 2013, the Company had four reportable segments -
Memory and Interface Division (MID), Chief Technology Office (CTO),
Cryptography Research Inc. (CRI) and Other. CRI has been included as a
reportable segment as its revenue of $32.6 million was over ten percent
of the Company's consolidated revenue for the year.
During the fourth quarter of 2013 and the year ended December 31, 2013,
the Company recorded an income tax provision of approximately $6.2
million and $21.7 million, respectively. As the Company continues to
maintain a full valuation allowance against its U.S. deferred tax
assets, the Company's tax provision consists of primarily foreign
withholding taxes.
2014 Outlook:
For 2014, the Company expects customer licensing income and revenue to
be between $295 million and $305 million. Customer licensing income and
revenue are not without risk and include expectations that the Company
will sign new customers for patent as well as solutions licensing. The
Company also expects to keep its non-GAAP operating expenses relatively
flat, year over year.
The above statements and any others in this document that refer to plans
and expectations for the year and the future are forward-looking
statements that involve a number of risks and uncertainties. Words such
as "anticipates," "expects," "intends," "plans," "believes," "seeks,"
"estimates," "may," "will," "should" and their variations identify
forward-looking statements. Statements that refer to or are based on
projections, uncertain events or assumptions also identify
forward-looking statements. Many factors could affect the Company's
actual results, and variances from the Company's current expectations
regarding such factors could cause actual results to differ materially
from those expressed in these forward-looking statements.
Conference Call:
The Company will host a conference call at 2:00 p.m. PT today to discuss
its financial results. The call, audio and slides will be available
online at investor.rambus.com.
A replay will be available following the call on the Rambus Investor
Relations website for one week at the following numbers: (855) 859-2056
(domestic) or (404) 537-3406 (international) with ID#37074711.
(1) Non-GAAP Financial Information:
In the commentary set forth above and in the financial statements
included in this earnings release, the Company presents the following
non-GAAP financial measures: customer licensing income, operating costs
and expenses, operating income (loss) and net income (loss). In
computing each of these non-GAAP financial measures, the following items
were considered: other patent royalties received but not recognized as
revenue, gain from settlement, proceeds from sale of intellectual
property, stock-based compensation expenses, acquisition-related
transaction costs and retention bonus expense, amortization expenses,
costs of restatement and related legal activities, restructuring
charges, impairment charges, severance costs, non-cash interest expense
and certain other one-time adjustments. The non-GAAP financial measures
disclosed by the Company should not be considered a substitute for, or
superior to, financial measures calculated in accordance with GAAP, and
the financial results calculated in accordance with GAAP and
reconciliations from these results should be carefully evaluated.
Management believes the non-GAAP financial measures are appropriate for
both its own assessment of, and to show investors, how the Company's
performance compares to other periods. The non-GAAP financial measures
used by the Company may be calculated differently from, and therefore
may not be comparable to, similarly titled measures used by other
companies. Reconciliation from GAAP to non-GAAP results is included in
the financial statements contained in this release. Additionally, the
Company has not reconciled customer licensing income guidance to revenue
guidance because it does not provide guidance for patent royalties
received but not recognized as revenue, which is a reconciling item
between revenue and customer licensing income. As items that impact
revenue are out of the Company's control and/or cannot be reasonably
predicted, the Company is unable to provide such guidance.
The Company's non-GAAP financial measures reflect adjustments based on
the following items:
Customer licensing income. Customer licensing income includes the
Company's measure of the total cash royalties received from its
customers under its licensing agreements with them and any product
sales. In 2013, the Company bifurcated royalty payments that it received
from SK Hynix and Micron Technology between revenue and gain from
settlement, which was reflected as reducing operating expenses. The
Company has combined revenue from its customers, including SK Hynix and
Micron Technology, and the gain from the SK Hynix and Micron Technology
settlement as customer licensing income to reflect the total amounts
received from all of its customers for the periods presented. In
addition, customer licensing income includes other patent royalties
received but not recognized as revenue and proceeds from sale of
intellectual property. In certain periods presented, certain patent
royalties received from a customer were not recognized as revenue as not
all revenue recognition criteria were met. In 2011, the Company received
patent royalty payments from certain patent license agreements assumed
in the acquisition of CRI which were treated as favorable contracts.
Cash received from these acquired favorable contracts reduced the
favorable contract intangible asset on the Company's balance sheet. The
Company has combined these cash royalty payments as customer licensing
income to reflect the total amounts received from its customers.
Stock-based compensation expense. These expenses primarily relate
to employee stock options, employee stock purchase plans, and employee
non-vested equity stock and non-vested stock units. The Company excludes
stock-based compensation expense from its non-GAAP measures primarily
because they are non-cash expenses that the Company does not believe are
reflective of ongoing operating results. Additionally, given the fact
that other companies may grant different amounts and types of equity
awards and may use different option valuation assumptions, excluding
stock-based compensation expense permits more accurate comparisons of
the Company's results with peer companies.
Acquisition-related transaction costs and retention bonus expense.
These expenses include all direct costs of certain acquisitions and the
current periods' portion of any retention bonus expense associated with
the acquisitions. The Company excludes these expenses in order to
provide better comparability between periods.
Restructuring charges. These charges may consist of severance,
contractual retention payments, exit costs and other charges and are
excluded because such charges are not directly related to ongoing
business results and do not reflect expected future operating expenses.
Impairment of goodwill and long-lived assets. These charges
consist of non-cash charges to goodwill and long-lived assets and are
excluded because such charges are non-recurring and do not reduce the
Company's liquidity.
Amortization expense. The Company incurs expenses for the
amortization of intangible assets acquired in acquisitions. The Company
excludes these items because these expenses are not reflective of
ongoing operating results in the period incurred. These amounts arise
from the Company's prior acquisitions and have no direct correlation to
the core operation of the Company's business.
Costs of restatement and related legal activities. These expenses
consist primarily of investigation, audit, legal and other professional
fees related to the 2006-2007 stock option investigation and related
litigation, as well as recoveries received from third parties. The
Company excludes these costs and recoveries from its non-GAAP measures
primarily because the Company believes that these non-recurring costs
and recoveries have no direct correlation to the core operation of the
Company's business.
Non-cash interest expense. The Company incurs non-cash interest
expense related to its convertible notes. The Company excludes non-cash
interest expense related to its convertible notes to provide more
accurate comparisons of the Company's results with other peer companies
and to more accurately reflect the Company's ongoing operations.
Reversal of one-time litigation costs. These adjustments are a
one-time litigation cost reversal of prior litigation costs accrued
related to previously awarded costs that the Company was required to pay
in connection with the SK Hynix and Micron Technology litigation. The
Company excludes these reversals from its non-GAAP measures because the
Company believes that these reversals have no direct correlation to the
core operations of the Company's business and they are a one-time event.
Severance costs. These expenses relate to the separation payment
to the Company's former chief executive officer. The Company excludes
these costs from its non-GAAP measures because the Company believes that
these non-recurring costs have no direct correlation to the core
operations of the Company's business.
Income tax adjustments. For purposes of internal forecasting,
planning and analyzing future periods that assumes net income from
operations, the Company estimates a fixed, long-term projected tax rate
of approximately 36 percent. Accordingly, the Company has applied the 36
percent tax rate to its non-GAAP financial results to assist the
Company's planning for future periods.
On occasion in the future, there may be other items, such as significant
gains or losses from contingencies that the Company may exclude in
deriving its non-GAAP financial measures if it believes that doing so is
consistent with the goal of providing useful information to investors
and management.
About Rambus Inc.:
Rambus brings invention to market. Our customizable IP cores,
architecture licenses, tools, services, and training improve the
competitive advantage of our customers' products while accelerating
their time-to-market. Rambus products and innovations capture, secure
and move data. For more information, visit rambus.com.
RMBSFN
|
Rambus Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
December 31,
2012
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
338,696
|
|
$
|
148,984
|
|
Marketable securities
|
|
|
48,966
|
|
|
54,346
|
|
Accounts receivable
|
|
|
2,251
|
|
|
529
|
|
Prepaids and other current assets
|
|
|
8,253
|
|
|
10,529
|
|
Deferred taxes
|
|
|
205
|
|
|
788
|
|
Total current assets
|
|
|
398,371
|
|
|
215,176
|
|
Intangible assets, net
|
|
|
117,172
|
|
|
153,173
|
|
Goodwill
|
|
|
116,899
|
|
|
124,969
|
|
Property, plant and equipment, net
|
|
|
72,642
|
|
|
86,905
|
|
Deferred taxes, long-term
|
|
|
4,797
|
|
|
4,458
|
|
Other assets
|
|
|
3,498
|
|
|
3,131
|
|
Total assets
|
|
$
|
713,379
|
|
$
|
587,812
|
|
|
|
|
|
|
|
LIABILITIES & STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
7,001
|
|
$
|
7,918
|
|
Accrued salaries and benefits
|
|
|
33,448
|
|
|
23,992
|
|
Accrued litigation expenses
|
|
|
498
|
|
|
9,822
|
|
Convertible notes, short-term
|
|
|
164,047
|
|
|
—
|
|
Other accrued liabilities
|
|
|
7,848
|
|
|
12,402
|
|
Total current liabilities
|
|
|
212,842
|
|
|
54,134
|
|
Long-term liabilities:
|
|
|
|
|
|
Convertible notes, long-term
|
|
|
109,629
|
|
|
147,556
|
|
Long-term imputed financing obligation
|
|
|
39,349
|
|
|
45,919
|
|
Other long-term liabilities
|
|
|
11,330
|
|
|
18,609
|
|
Total long-term liabilities
|
|
|
160,308
|
|
|
212,084
|
|
Total stockholders' equity
|
|
|
340,229
|
|
|
321,594
|
|
Total liabilities and stockholders' equity
|
|
$
|
713,379
|
|
$
|
587,812
|
|
|
|
|
|
|
|
Rambus Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Royalties
|
|
$
|
69,867
|
|
|
$
|
57,258
|
|
|
$
|
264,111
|
|
|
$
|
232,385
|
|
|
Contract and other revenue
|
|
|
3,555
|
|
|
|
185
|
|
|
|
7,390
|
|
|
|
1,666
|
|
|
Total revenue
|
|
|
73,422
|
|
|
|
57,443
|
|
|
|
271,501
|
|
|
|
234,051
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of revenue (1)
|
|
|
10,358
|
|
|
|
6,340
|
|
|
|
33,215
|
|
|
|
28,372
|
|
|
Research and development (1)
|
|
|
26,803
|
|
|
|
33,088
|
|
|
|
117,981
|
|
|
|
140,503
|
|
|
Marketing, general and administrative (1)
|
|
|
18,511
|
|
|
|
21,311
|
|
|
|
76,448
|
|
|
|
112,594
|
|
|
Restructuring charges
|
|
|
2,211
|
|
|
|
679
|
|
|
|
5,546
|
|
|
|
7,301
|
|
|
Impairment of goodwill and long-lived assets
|
|
|
9,681
|
|
|
|
—
|
|
|
|
17,751
|
|
|
|
35,471
|
|
|
Gain from sale of intellectual property
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,388
|
)
|
|
|
—
|
|
|
Gain from settlement
|
|
|
(356
|
)
|
|
|
—
|
|
|
|
(535
|
)
|
|
|
—
|
|
|
Costs of restatement and related legal activities
|
|
|
—
|
|
|
|
52
|
|
|
|
19
|
|
|
|
244
|
|
|
Total operating costs and expenses
|
|
|
67,208
|
|
|
|
61,470
|
|
|
|
249,037
|
|
|
|
324,485
|
|
|
Operating income (loss)
|
|
|
6,214
|
|
|
|
(4,027
|
)
|
|
|
22,464
|
|
|
|
(90,434
|
)
|
|
Interest income and other income (expense), net
|
|
|
(223
|
)
|
|
|
(116
|
)
|
|
|
(1,596
|
)
|
|
|
59
|
|
|
Interest expense
|
|
|
(9,595
|
)
|
|
|
(7,090
|
)
|
|
|
(32,885
|
)
|
|
|
(27,510
|
)
|
|
Interest and other income (expense), net
|
|
|
(9,818
|
)
|
|
|
(7,206
|
)
|
|
|
(34,481
|
)
|
|
|
(27,451
|
)
|
|
Loss before income taxes
|
|
|
(3,604
|
)
|
|
|
(11,233
|
)
|
|
|
(12,017
|
)
|
|
|
(117,885
|
)
|
|
Provision for income taxes
|
|
|
6,173
|
|
|
|
4,899
|
|
|
|
21,731
|
|
|
|
16,451
|
|
|
Net loss
|
|
$
|
(9,777
|
)
|
|
$
|
(16,132
|
)
|
|
$
|
(33,748
|
)
|
|
$
|
(134,336
|
)
|
|
Net loss per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.09
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.30
|
)
|
|
$
|
(1.21
|
)
|
|
Diluted
|
|
$
|
(0.09
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.30
|
)
|
|
$
|
(1.21
|
)
|
|
Weighted average shares used in per share calculation
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
113,217
|
|
|
|
111,332
|
|
|
|
112,415
|
|
|
|
110,769
|
|
|
Diluted
|
|
|
113,217
|
|
|
|
111,332
|
|
|
|
112,415
|
|
|
|
110,769
|
|
|
_________
(1) Total stock-based compensation expense for the three months
and years ended December 31, 2013 and 2012 are presented as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
2012
|
|
|
Cost of revenue
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
20
|
|
|
Research and development
|
|
$
|
1,431
|
|
|
$
|
1,974
|
|
|
$
|
6,597
|
|
|
$
|
9,546
|
|
|
Marketing, general and administrative
|
|
$
|
1,658
|
|
|
$
|
2,542
|
|
|
$
|
8,365
|
|
|
$
|
12,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rambus Inc.
Supplemental Reconciliation of GAAP to Non-GAAP Results
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
|
December 31,
2013
|
|
September 30,
2013
|
|
December 31,
2012
|
|
December 31,
2013
|
|
December 31,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
73,422
|
|
$
|
73,294
|
|
$
|
57,443
|
|
$
|
271,501
|
|
$
|
234,051
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other patent royalties received
|
|
|
75
|
|
|
850
|
|
|
4,175
|
|
|
9,554
|
|
|
12,665
|
|
|
Gain from settlement
|
|
|
356
|
|
|
179
|
|
|
—
|
|
|
535
|
|
|
—
|
|
|
Total customer licensing income
|
|
$
|
73,853
|
|
$
|
74,323
|
|
$
|
61,618
|
|
$
|
281,590
|
|
$
|
246,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
$
|
67,208
|
|
$
|
64,229
|
|
$
|
61,470
|
|
$
|
249,037
|
|
$
|
324,485
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other patent royalties received
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,250
|
|
|
—
|
|
|
Stock-based compensation
|
|
|
(3,096
|
)
|
|
(3,363
|
)
|
|
(4,516
|
)
|
|
(14,981
|
)
|
|
(22,546
|
)
|
|
Acquisition-related transaction costs and retention bonuses
|
|
|
(1,463
|
)
|
|
(1,512
|
)
|
|
(4,191
|
)
|
|
(10,372
|
)
|
|
(25,678
|
)
|
|
Amortization
|
|
|
(7,489
|
)
|
|
(7,383
|
)
|
|
(6,811
|
)
|
|
(28,909
|
)
|
|
(30,347
|
)
|
|
Reversal of one-time litigation costs
|
|
|
566
|
|
|
—
|
|
|
—
|
|
|
9,048
|
|
|
—
|
|
|
Restructuring charges
|
|
|
(2,211
|
)
|
|
(1,129
|
)
|
|
(679
|
)
|
|
(5,546
|
)
|
|
(7,301
|
)
|
|
Impairment of goodwill and long-lived assets
|
|
|
(9,681
|
)
|
|
(8,070
|
)
|
|
—
|
|
|
(17,751
|
)
|
|
(35,471
|
)
|
|
Severance costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(514
|
)
|
|
—
|
|
|
Gain from settlement
|
|
|
356
|
|
|
179
|
|
|
—
|
|
|
535
|
|
|
—
|
|
|
Costs of restatement and related legal activities
|
|
|
—
|
|
|
—
|
|
|
(52
|
)
|
|
(19
|
)
|
|
(244
|
)
|
|
Non-GAAP operating costs and expenses
|
|
$
|
44,190
|
|
$
|
42,951
|
|
$
|
45,221
|
|
$
|
182,778
|
|
$
|
202,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
$
|
6,214
|
|
$
|
9,065
|
|
$
|
(4,027
|
)
|
$
|
22,464
|
|
$
|
(90,434
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other patent royalties received
|
|
|
75
|
|
|
850
|
|
|
4,175
|
|
|
7,304
|
|
|
12,665
|
|
|
Stock-based compensation
|
|
|
3,096
|
|
|
3,363
|
|
|
4,516
|
|
|
14,981
|
|
|
22,546
|
|
|
Acquisition-related transaction costs and retention bonuses
|
|
|
1,463
|
|
|
1,512
|
|
|
4,191
|
|
|
10,372
|
|
|
25,678
|
|
|
Amortization
|
|
|
7,489
|
|
|
7,383
|
|
|
6,811
|
|
|
28,909
|
|
|
30,347
|
|
|
Reversal of one-time litigation costs
|
|
|
(566
|
)
|
|
—
|
|
|
—
|
|
|
(9,048
|
)
|
|
—
|
|
|
Restructuring charges
|
|
|
2,211
|
|
|
1,129
|
|
|
679
|
|
|
5,546
|
|
|
7,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
|
December 31,
2013
|
|
September 30,
2013
|
|
December 31,
2012
|
|
December 31,
2013
|
|
December 31,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of goodwill and long-lived assets
|
|
|
9,681
|
|
|
8,070
|
|
|
—
|
|
|
17,751
|
|
|
35,471
|
|
|
Severance costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
514
|
|
|
—
|
|
|
Costs of restatement and related legal activities
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
19
|
|
|
244
|
|
|
Non-GAAP operating income
|
|
$
|
29,663
|
|
$
|
31,372
|
|
$
|
16,397
|
|
$
|
98,812
|
|
$
|
43,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
$
|
(3,604
|
)
|
$
|
579
|
|
$
|
(11,233
|
)
|
$
|
(12,017
|
)
|
$
|
(117,885
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other patent royalties received
|
|
|
75
|
|
|
850
|
|
|
4,175
|
|
|
7,304
|
|
|
12,665
|
|
|
Stock-based compensation
|
|
|
3,096
|
|
|
3,363
|
|
|
4,516
|
|
|
14,981
|
|
|
22,546
|
|
|
Acquisition-related transaction costs and retention bonuses
|
|
|
1,463
|
|
|
1,512
|
|
|
4,191
|
|
|
10,372
|
|
|
25,678
|
|
|
Amortization
|
|
|
7,489
|
|
|
7,383
|
|
|
6,811
|
|
|
28,909
|
|
|
30,347
|
|
|
Reversal of one-time litigation costs
|
|
|
(566
|
)
|
|
—
|
|
|
—
|
|
|
(9,048
|
)
|
|
—
|
|
|
Restructuring charges
|
|
|
2,211
|
|
|
1,129
|
|
|
679
|
|
|
5,546
|
|
|
7,301
|
|
|
Impairment of goodwill and long-lived assets
|
|
|
9,681
|
|
|
8,070
|
|
|
—
|
|
|
17,751
|
|
|
35,471
|
|
|
Severance costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
514
|
|
|
—
|
|
|
Costs of restatement and related legal activities
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
19
|
|
|
244
|
|
|
Impairment of investment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,400
|
|
|
—
|
|
|
Non-cash interest expense on convertible notes
|
|
|
5,927
|
|
|
5,135
|
|
|
3,839
|
|
|
19,296
|
|
|
14,695
|
|
|
Non-GAAP income before income taxes
|
|
$
|
25,772
|
|
$
|
28,021
|
|
$
|
13,030
|
|
$
|
85,027
|
|
$
|
31,062
|
|
|
Non-GAAP provision for income taxes
|
|
|
9,278
|
|
|
10,088
|
|
|
4,691
|
|
|
30,610
|
|
|
11,182
|
|
|
Non-GAAP net income
|
|
$
|
16,494
|
|
$
|
17,933
|
|
$
|
8,339
|
|
$
|
54,417
|
|
$
|
19,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP basic net income per share
|
|
$
|
0.15
|
|
$
|
0.16
|
|
$
|
0.07
|
|
$
|
0.48
|
|
$
|
0.18
|
|
|
Non-GAAP diluted net income per share
|
|
$
|
0.14
|
|
$
|
0.15
|
|
$
|
0.07
|
|
$
|
0.47
|
|
$
|
0.17
|
|
|
Weighted average shares used in non-GAAP per share calculation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
113,217
|
|
|
112,640
|
|
|
111,332
|
|
|
112,415
|
|
|
110,769
|
|
|
Diluted
|
|
|
116,211
|
|
|
116,052
|
|
|
118,022
|
|
|
115,670
|
|
|
117,619
|
|
Rambus Inc.
Linda Ashmore, 408-462-8411
Corporate
Communications
lashmore@rambus.com
Nicole
Noutsios, 408-462-8050
Investor Relations
nnoutsios@rambus.com
Source: Rambus Inc.
News Provided by Acquire Media