Revenue of $40.5 million, loss per share of $0.14 for the fourth quarter and revenue of $179.9 million, loss per share of $0.27 for the year
LOS ALTOS, CALIFORNIA, UNITED STATES – 02/04/2008 – 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 fourth quarter and year ended 2007.
Revenues for the fourth quarter were $40.5 million, down 2.8% sequentially and down 22.9% over the fourth quarter of last year. Revenues for the year were $179.9 million, down 7.9% over the last year.
“We faced a number of extraordinary challenges in 2007, many of which had an impact on our revenue results,” said Harold Hughes, president and chief executive officer at Rambus. “Nevertheless, we enter the new year with some good momentum as illustrated by our first HDTV win for the XDR memory architecture at Toshiba, as well as Qimonda’s news that it is now shipping samples of XDR DRAM, expanding the supply base for the world’s fastest memory.”
Total costs and expenses for the fourth quarter of 2007 were $72.6 million, 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 as compared to total costs and expenses of $58.2 million for the third quarter of 2007, which included $8.7 million of stock-based compensation expenses, $4.2 million of restatement and related legal expenses and $0.3 million of severance expenses. General litigation expenses for the quarter were $16.1 million, an increase of $4.4 million from the third quarter of 2007. Total costs and expenses for the fourth quarter of 2006 were $53.2 million, which included $9.7 million of stock-based compensation and $5.7 million of restatement and related legal expenses. General litigation expenses in the fourth quarter of 2006 were $5.2 million.
Total costs and expenses for fiscal year 2007 were $250.1 million, which included $44.8 million of stock-based compensation expenses, $19.5 million of restatement and related legal expenses, $6.7 million of IRS 409A related expenses and $3.3 million of severance expenses as compared to total costs and expenses of $235.4 million for fiscal year 2006, which included $40.5 million of stock-based compensation and $31.4 million of restatement and related legal expenses. General litigation expenses for the year were $39.5 million, an increase of $10.6 million from the previous year, excluding a bonus paid to a law firm in fiscal year 2006.
Net loss for the fourth quarter of 2007 was $14.6 million as compared to a net loss of $6.5 million in the previous quarter and a net income of $2.1 million in the fourth quarter of 2006. Net loss per share for the fourth quarter was $0.14 as compared to a net loss per share of $0.06 for the previous quarter and a net income per share of $0.02 for the fourth quarter of 2006.
Net loss for fiscal year 2007 was $27.7 million as compared to a net loss of $13.8 million in fiscal year 2006. Net loss per share for fiscal 2007 was $0.27 as compared to a net loss per share of $0.13 for fiscal year 2006.
Cash, cash equivalents and marketable securities as of December 31, 2007 were $440.9 million, down approximately $4.1 million from September 30, 2007 and up approximately $4.5 million from December 31, 2006.
The conference call discussing fourth quarter and year end results will be available live via the Rambus website (http://investor.rambus.com) at 2:00 p.m. Pacific Time today. The call will be webcast and can be accessed through the Rambus website. A replay will be available following the call on Rambus’ Investor Relations website or for one week at the following numbers: (888) 203-1112 (domestic) or (719) 457-0820 (international) with ID# 7774674.
About Rambus Inc.
Rambus is one of the world’s premier technology licensing companies specializing in the invention and design of high-speed memory architectures. Additional information is available at www.rambus.com.
|Condensed Consolidated Balance Sheets
|December 31, 2007||September 31, 2006|
|Cash and cash equivalents||$ 119,391||$ 73,304|
|Deferred and prepaid taxes||12,584||11,388|
|Prepaid expenses and other current assets||7,693||4,403|
|Total current assets||463,079||442,744|
|Deferred taxes, long-term||121,810||98,193|
|Intangible assets, net||13,441||18,697|
|Property, plant and equipment, net||24,587||26, 019|
|Other non-current assets||3,624||1,380|
|Marketable securities, long-term||–||11,982|
|Liabilities and Stockholders’ Equity|
|Accounts payable||$ 11,283||$ 10,429|
|Accrued payroll and related benefits||9,985||12,788|
|Accrued litigation expenses||26,234||23,143|
|Other accrued liabilities||5,894||6,075|
|Total current liabilities||56,152||218,438|
|Deferred revenue, less current portion||–||1,554|
|Other long-term liabilities||4,111||2,337|
|Total long-term liabilities||164,111||3,891|
|Total stockholders’ equity||413,018||382,288|
|Total liabilities and stockholders’ equity||$633,281||$604,617|
|Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
|Three Months Ended||Twelve Months Ended|
|Costs and expenses:|
|Cost of contract revenues *||8,246||7,382||27,124||30,392|
|Research and development *||22,538||17,424||82,877||68,977|
|Marketing, general and administrative *||40,940||22,692||120,597||104,561|
|Costs of restatement and related legal activities||826||5,746||19,457||31,436|
|Total costs and expenses||72,550||53,244||250,055||235,366|
|Interest and other income, net||5,263||2,344||21,759||14,337|
|Income (loss) before income taxes||(26,755)||1,690||(48,356)||(25,705)|
|Benefit from income taxes||12,197||379||20,692||11,889|
|Net income (loss)||$(14,558)||$2,069||$(27,664)||$(13,816)|
|Net income (loss) per share:|
|Weighted-Average Shares used in computing per share amounts:|
|* Total stock-based compensation expense for the three and twelve month periods ended December 31, 2007 and December 31, 2006 are presented as follows:|
|Three Months Ended||Twelve Months Ended|
|Cost of contract revenues||$1,841||$1,805||$5,910||$8,155|
|Research and development||$6,378||$3,460||$16,199||$14,902|
|Marketing, general and administrative||$8,189||$4,421||$22,701||$17,466|