Revenue of $39.7 million, loss per share of $0.12 cents for the first quarter
LOS ALTOS, CALIFORNIA, UNITED STATES – 04/24/2008 – 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 first quarter of 2008.
Revenues for the first quarter were $39.7 million, down 2.0% sequentially from the fourth quarter and down 20.8% over the first quarter of last year.
“While we delivered revenue at the high end of our guidance, we’re nevertheless unsatisfied with the year-over-year result,” said Harold Hughes, president and chief executive officer at Rambus. “Our challenge now is to translate our recent legal victories into renewed licensing momentum for our patented innovations and leadership products.”
Total costs and expenses for the first quarter of 2008 were $63.0 million, which included $10.5 million of stock-based compensation expenses and $0.9 million of restatement and related legal expenses. This compares to total costs and expenses of $72.6 million for the fourth quarter of 2007, which included $16.4 million of stock-based compensation expenses, $0.8 million of restatement and related legal expenses and $3.0 million of severance expenses. General litigation expenses for the quarter were $13.2 million, a decrease of $2.9 million from the fourth quarter of 2007. As compared to the first quarter of last year, total costs and expenses increased from $61.6 million, which included $9.4 million of stock-based compensation expenses and $7.0 million of restatement and related legal expenses. General litigation expenses in the first quarter of 2008 increased $8.3 million from the first quarter of 2007.
Net loss for the first quarter of 2008 was $12.6 million as compared to a net loss of $14.6 million in the fourth quarter of 2007 and a net loss of $3.9 million in the first quarter of 2007. Net loss per share for the first quarter of 2008 was $0.12 as compared to a net loss per share of $0.14 in the fourth quarter of 2007 and a net loss per share of $0.04 for the first quarter of 2007.
Cash, cash equivalents and marketable securities as of March 31, 2008 were $382.0 million, down approximately $58.9 million from December 31, 2007. During the first quarter of 2008, the Company repurchased approximately 1.4 million shares of common stock at an aggregate expense of $24.9 million. In addition, the Company transferred approximately $18.3 million to an escrow account pursuant to the settlement agreement in the consolidated class action lawsuit regarding stock options allegations.
The conference call discussing first quarter results will be available live via the Rambus website (http://investor.rambus.com) at 2:00 p.m. Pacific Time today. The call will be webcast and can be accessed through the Rambus website. A replay will be available following the call on Rambus’ Investor Relations website or for one week at the following numbers: (888) 203-1112 (domestic) or (719) 457-0820 (international) with ID# 3632485.
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.
| Condensed Consolidated Balance Sheets (In thousands) (Unaudited) |
||
| March 31, 2008 | December 31, 2007 | |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 124,861 | $ 119,391 |
| Marketable securities | 257,165 | 321,491 |
| Accounts receivable | 5,636 | 442 |
| Unbilled receivables | 1,760 | 1,478 |
| Prepaids and other current assets | 13,936 | 8,349 |
| Deferred taxes | 11,595 | 11,595 |
| Restricted cash | 18,345 | – |
| Total current assets | 433,298 | 462,746 |
| Restricted cash | 2,416 | 2,286 |
| Deferred taxes, long-term | 121,643 | 116,209 |
| Intangible assets, net | 12,381 | 13,441 |
| Property and equipment, net | 28,497 | 24,587 |
| Goodwill | 4,454 | 4,454 |
| Other non-current assets | 5,746 | 3,624 |
| Total assets | $ 608,435 | $ 627,347 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 12,014 | $ 11,283 |
| Accrued payroll and related benefits | 10,467 | 9,985 |
| Accrued litigation expenses | 24,097 | 26,234 |
| Other accrued liabilities | 8,765 | 5,894 |
| Deferred revenue | 3,799 | 2,756 |
| Total current liabilities | 59,142 | 56,152 |
| Long-term liabilities: | ||
| Convertible notes | 160,000 | 160,000 |
| Other long-term liabilities | 4,052 | 4,111 |
| Total long-term liabilities | 164,052 | 164,111 |
| Total stockholders’ equity | 385,241 | 407,084 |
| Total liabilities and stockholders’ equity | $ 608,435 | $ 627,347 |
| Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) |
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| Three Months Ended | ||||
| March 31, 2008 | March 31, 2007 | |||
| Revenue: | ||||
| Royalty revenue | $ 33,093 | $ 43,746 | ||
| Contract revenue | 6,645 | 6,404 | ||
| Total revenues | 39,738 | 50,150 | ||
| Costs and expenses: | ||||
| Cost of contract revenues (1) | 7,233 | 6,215 | ||
| Research and development (1) | 21,502 | 23,430 | ||
| Marketing, general and administrative (1) | 33,321 | 24,965 | ||
| Costs of restatement and related legal activities | 912 | 7,009 | ||
| Total costs and expenses | 62,968 | 61,619 | ||
| Operating loss | (23,230) | (11,469) | ||
| Interest and other income, net | 4,595 | 5,194 | ||
| Loss before income taxes | (18,635) | (6,275) | ||
| Benefit from income taxes | (6,001) | (2,387) | ||
| Net loss | $ (12,634) | $ (3,888) | ||
| Net loss per share: | ||||
| Basic | $ (0.12) | $ (0.04) | ||
| Diluted | $ (0.12) | $ (0.04) | ||
| Weighted-Average Shares used in computing per share amounts: | ||||
| Basic | 104,683 | 103,820 | ||
| Diluted | 104,683 | 103,820 | ||
| (1) Total stock-based compensation expense for the three month periods ended March 31, 2008 and March 31, 2007 are presented as follows: | ||||
| Three Months Ended | ||||
| March 31, 2008 | March 31, 2007 | |||
| Cost of contract revenues | $ 1,918 | $ 1,091 | ||
| Research and development | $ 3,904 | $ 3,383 | ||
| Marketing, general and administrative | $ 4,707 | $ 4,943 | ||