(1) Total stock-based compensation expense for the three and nine months ended September 30, 2014 and 2013 are presented as follows:
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
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| 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||
| Cost of revenue | $ | 12 | $ | 7 | $ | 34 | $ | 12 | ||||||||||||||||||||
| Research and development | $ | 1,648 | $ | 1,630 | $ | 5,574 | $ | 5,166 | ||||||||||||||||||||
| Marketing, general and administrative | $ | 1,781 | $ | 1,726 | $ | 5,587 | $ | 6,707 | ||||||||||||||||||||
|
Rambus Inc. Supplemental Reconciliation of GAAP to Non-GAAP Results (In thousands) (Unaudited) |
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| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
|
September 30, 2014 |
June 30, 2014 |
September 30, 2013 |
September 30, 2014 |
September 30, 2013 |
|||||||||||||||||||||||||
| Operating costs and expenses | $ | 55,244 | $ | 56,414 | $ | 64,229 | $ | 166,757 | $ | 181,829 | |||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||
| Stock-based compensation expense | (3,441 | ) | (4,855 | ) | (3,363 | ) | (11,195 | ) | (11,885 | ) | |||||||||||||||||||
| Acquisition-related transaction costs and retention bonus expense | (6 | ) | (1,028 | ) | (1,512 | ) | (2,469 | ) | (8,909 | ) | |||||||||||||||||||
| Amortization expense | (6,741 | ) | (6,757 | ) | (7,383 | ) | (20,295 | ) | (21,420 | ) | |||||||||||||||||||
| Reversal of one-time litigation costs | — | — | — | — | 8,482 | ||||||||||||||||||||||||
| Restructuring charges | — | — | (1,129 | ) | (39 | ) | (3,335 | ) | |||||||||||||||||||||
| Impairment of goodwill and long-lived assets | — | — | (8,070 | ) | — | (8,070 | ) | ||||||||||||||||||||||
| Severance costs | — | — | — | — | (514 | ) | |||||||||||||||||||||||
| Costs of restatement and related legal activities | — | — | — | — | (19 | ) | |||||||||||||||||||||||
| Non-GAAP operating costs and expenses | $ | 45,056 | $ | 43,774 | $ | 42,772 | $ | 132,759 | $ | 136,159 | |||||||||||||||||||
| Operating income | $ | 14,468 | $ | 20,104 | $ | 9,065 | $ | 57,761 | $ | 16,250 | |||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||
| Stock-based compensation expense | 3,441 | 4,855 | 3,363 | 11,195 | 11,885 | ||||||||||||||||||||||||
| Acquisition-related transaction costs and retention bonus expense | 6 | 1,028 | 1,512 | 2,469 | 8,909 | ||||||||||||||||||||||||
| Amortization expense | 6,741 | 6,757 | 7,383 | 20,295 | 21,420 | ||||||||||||||||||||||||
| Reversal of one-time litigation costs | — | — | — | — | (8,482 | ) | |||||||||||||||||||||||
| Restructuring charges | — | — | 1,129 | 39 | 3,335 | ||||||||||||||||||||||||
| Impairment of goodwill and long-lived assets | — | — | 8,070 | — | 8,070 | ||||||||||||||||||||||||
| Severance costs | — | — | — | — | 514 | ||||||||||||||||||||||||
| Costs of restatement and related legal activities | — | — | — | — | 19 | ||||||||||||||||||||||||
| Non-GAAP operating income | $ | 24,656 | $ | 32,744 | $ | 30,522 | $ | 91,759 | $ | 61,920 | |||||||||||||||||||
| Income (loss) before income taxes | $ | 10,860 | $ | 11,438 | $ | 579 | $ | 35,574 | $ | (8,413 | ) | ||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||
| Stock-based compensation expense | 3,441 | 4,855 | 3,363 | 11,195 | 11,885 | ||||||||||||||||||||||||
| Acquisition-related transaction costs and retention bonus expense | 6 | 1,028 | 1,512 | 2,469 | 8,909 | ||||||||||||||||||||||||
| Amortization expense | 6,741 | 6,757 | 7,383 | 20,295 | 21,420 | ||||||||||||||||||||||||
| Reversal of one-time litigation costs | — | — | — | — | (8,482 | ) | |||||||||||||||||||||||
| Restructuring charges | — | — | 1,129 | 39 | 3,335 | ||||||||||||||||||||||||
| Impairment of goodwill and long-lived assets | — | — | 8,070 | — | 8,070 | ||||||||||||||||||||||||
| Severance costs | — | — | — | — | 514 | ||||||||||||||||||||||||
| Costs of restatement and related legal activities | — | — | — | — | 19 | ||||||||||||||||||||||||
| Impairment of investment | 600 | — | — | 600 | 1,400 | ||||||||||||||||||||||||
| Non-cash interest expense on convertible notes | 1,515 | 5,469 | 5,135 | 13,226 | 13,369 | ||||||||||||||||||||||||
| Non-GAAP income before income taxes | $ | 23,163 | $ | 29,547 | $ | 27,171 | $ | 83,398 | $ | 52,026 | |||||||||||||||||||
| GAAP provision for income taxes | 5,347 | 6,395 | 6,304 | 17,214 | 15,558 | ||||||||||||||||||||||||
| Adjustment to GAAP provision for income taxes | 2,992 | 4,242 | 3,478 | 12,810 | 3,171 | ||||||||||||||||||||||||
| Non-GAAP provision for income taxes | 8,339 | 10,637 | 9,782 | 30,024 | 18,729 | ||||||||||||||||||||||||
| Non-GAAP net income | $ | 14,824 | $ | 18,910 | $ | 17,389 | $ | 53,374 | $ | 33,297 | |||||||||||||||||||
| Non-GAAP basic net income per share | $ | 0.13 | $ | 0.17 | $ | 0.15 | $ | 0.47 | $ | 0.30 | |||||||||||||||||||
| Non-GAAP diluted net income per share | $ | 0.13 | $ | 0.16 | $ | 0.15 | $ | 0.45 | $ | 0.29 | |||||||||||||||||||
| Weighted average shares used in non-GAAP per share calculation: | |||||||||||||||||||||||||||||
| Basic | 114,523 | 114,116 | 112,640 | 114,080 | 112,144 | ||||||||||||||||||||||||
| Diluted | 118,206 | 117,398 | 116,052 | 117,540 | 115,833 | ||||||||||||||||||||||||
|
Supplemental Reconciliation of GAAP to Non-GAAP Effective Tax Rate (1) |
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| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||
|
September 30, 2014 |
June 30, 2014 |
September 30, 2013 |
September 30, 2014 |
September 30, 2013 |
||||||||||||||||||||||||||||||
| GAAP effective tax rate | 49 |
% |
|
|
56 |
% |
|
|
1,089 |
% |
|
48 |
% |
|
185 |
% |
|
|||||||||||||||||
| Adjustment to GAAP effective tax rate |
(13 |
)% |
|
|
(20 |
)% |
|
|
(1,053 |
)% |
|
(12 |
)% |
|
(149 |
)% |
|
|||||||||||||||||
| Non-GAAP effective tax rate | 36 |
% |
|
|
36 |
% |
|
|
36 |
% |
|
36 |
% |
|
36 |
% |
|
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