EX-99.1 2 f40069exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1
(RAMBUS LOGO)  
NEWS RELEASE
RAMBUS REPORTS FIRST QUARTER RESULTS
Revenue of $39.7 million, loss per share of $0.12 cents for the first quarter
LOS ALTOS, Calif. – April 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.
Contacts:
Nicole Noutsios
Investor Relations
Rambus Inc.
(650) 947-5050
nnoutsios@rambus.com
Linda Ashmore
Public Relations
Rambus Inc.
(650) 947-5411
lashmore@rambus.com

 


 

Press Release Financials   (RAMBUS LOGO)
    4440 El Camino Real
    Los Altos, CA 94022
     
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
                 
    March 31,     December 31,  
    2008     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  
 
           

 


 

Press Release Financials   (RAMBUS LOGO)
    4440 El Camino Real
    Los Altos, CA 94022
     
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
                 
    Three Months Ended March 31,  
    2008     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     2007  
Cost of contract revenues
  $ 1,918     $ 1,091  
Research and development
  $ 3,904     $ 3,383  
Marketing, general and administrative
  $ 4,707     $ 4,943