Rambus Reports Fourth Quarter and Fiscal Year 2015 Financial

Rambus Reports Fourth Quarter and Fiscal Year 2015 Financial Results

Non-cash interest expense on convertible notes. 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.

Income tax adjustments. For purposes of internal forecasting, planning and analyzing future periods that assume net income from operations, the Company estimates a fixed, long-term projected tax rate of approximately 36 percent, which consists of estimated U.S. federal and state tax rates, and excludes tax rates associated with certain items such as withholding tax, tax credits, deferred tax asset valuation allowance and the release of any deferred tax asset valuation allowance. Accordingly, the Company has applied the 36 percent tax rate to its non-GAAP financial results for all periods. The Company has provided below a reconciliation of its GAAP provision for income taxes and GAAP effective tax rate to the assumed non-GAAP provision for income taxes and non-GAAP effective tax rate.

On occasion in the future, there may be other items, such as asset impairments and 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.

Forward-Looking Statements

This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 including those relating to Rambus’ expectations regarding 2016 revenue for the first quarter and year, and estimated, fixed, long-term projected tax rates. Such forward-looking statements are based on current expectations, estimates and projections, management’s beliefs and certain assumptions made by Rambus’ management. Actual results may differ materially. Rambus’ business generally is subject to a number of risks which are described more fully in Rambus’ periodic reports filed with the Securities and Exchange Commission. Rambus undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

About Rambus Inc.

Rambus creates cutting-edge semiconductor and IP products, spanning memory and interfaces to security, smart sensors and lighting. Our chips, customizable IP cores, architecture licenses, tools, services, training and innovations improve the competitive advantage of our customers. We collaborate with the industry, partnering with leading ASIC and SoC designers, foundries, IP developers, EDA companies and validation labs. For more information, visit www.rambus.com.

RMBSFN


Rambus Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

	December 31,		December 31,
	2015		2014
ASSETS

Current assets:
Cash and cash equivalents	$	143,764	$	154,126
Marketable securities	143,942		145,983
Accounts receivable	16,408		6,001
Prepaids and other current assets	11,476		8,541
Deferred taxes	—		187
Total current assets	315,590		314,838
Intangible assets, net	64,266		89,371
Goodwill	116,899		116,899
Property, plant and equipment, net	56,616		64,023
Deferred taxes, long-term	162,485		536
Other assets	3,648		2,612
Total assets	$	719,504	$	588,279

LIABILITIES & STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	4,096	$	6,962
Accrued salaries and benefits	12,278		14,840
Other accrued liabilities	11,992		12,856
Total current liabilities	28,366		34,658
Long-term liabilities:
Convertible notes, long-term	120,901		115,089
Long-term imputed financing obligation	38,625		39,063
Other long-term liabilities	5,079		7,847
Total long-term liabilities	164,605		161,999
Total stockholders’ equity	526,533		391,622
Total liabilities and stockholders’ equity	$	719,504	$	588,279


Rambus Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2015			2014			2015			2014

Revenue:
Royalties	$	66,242		$	64,134		$	262,415		$	271,521
Contract and other revenue	10,531			7,906			33,863			25,037
Total revenue	76,773			72,040			296,278			296,558
Operating costs and expenses:
Cost of revenue (1)	11,340			10,748			45,344			41,947
Research and development (1)	25,604			28,445			111,110			110,025
Sales, general and administrative (1)	16,853			19,131			70,554			74,770
Restructuring charges	3,576			—			3,576			39
Gain from sale of intellectual property	(424		)	(3,359		)	(3,686		)	(3,529		)
Gain from settlement	(510		)	(510		)	(2,040		)	(2,040		)
Total operating costs and expenses	56,439			54,455			224,858			221,212
Operating income	20,334			17,585			71,420			75,346
Interest income and other income (expense), net	350			156			1,224			(276		)
Interest expense	(3,122		)	(3,065		)	(12,413		)	(24,820		)
Interest and other income (expense), net	(2,772		)	(2,909		)	(11,189		)	(25,096		)
Income before income taxes	17,562			14,676			60,231			50,250
Provision for (benefit from) income taxes	4,570			6,835			(151,157		)	24,049
Net income	$	12,992		$	7,841		$	211,388		$	26,201
Net income per share:
Basic	$	0.12		$	0.07		$	1.84		$	0.23
Diluted	$	0.11		$	0.07		$	1.80		$	0.22
Weighted average shares used in per share calculation
Basic	111,476			115,024			114,814			114,318
Diluted	113,388			117,620			117,484			117,624

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