Rambus Reports Second Quarter 2019 Financial Results

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

About Rambus Inc.

Dedicated to making data faster and safer, Rambus creates innovative hardware, software and services that drive technology advancements from the data center to the mobile edge. Our architecture licenses, IP cores, chips, software and services span memory and interfaces, security and emerging technologies to positively impact the modern world. We collaborate with the industry, partnering with leading chip and system designers, foundries and service providers. Integrated into tens of billions of devices and systems, our products power and secure diverse applications, including Big Data, Internet of Things (IoT) security, mobile payments and smart ticketing. For more information, visit rambus.com.

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 product and service offerings, the expected benefits of our merger, acquisition and divestiture activity, future profit and growth, and financial guidance for the third quarter of 2019, including operating costs and expenses, and estimated, fixed, long-term projected tax rates, both on a GAAP and non-GAAP basis as appropriate. 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.

Source: Rambus Inc.

Rambus Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited)
	June 30, 2019		December 31, 2018
ASSETS

Current assets:
Cash and cash equivalents	$	114,186	$	115,924
Marketable securities	223,532		161,840
Accounts receivable	28,225		50,863
Unbilled receivables	177,897		176,613
Inventories	9,326		6,772
Assets held for sale	78,388		—
Prepaids and other current assets	9,350		15,738
Total current assets	640,904		527,750
Intangible assets, net	29,748		59,936
Goodwill	153,144		207,178
Property, plant and equipment, net	41,590		57,028
Operating lease right-of-use assets	16,081		—
Deferred tax assets	4,399		4,435
Unbilled receivables, long-term	419,532		497,003
Other assets	6,763		7,825
Total assets	$	1,312,161	$	1,361,155

LIABILITIES & STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	7,794	$	7,392
Accrued salaries and benefits	13,966		16,938
Deferred revenue	6,448		19,374
Income taxes payable, short-term	17,461		16,390
Operating lease liabilities	8,381		—
Liabilities held for sale	13,706		—
Other current liabilities	16,668		9,191
Total current liabilities	84,424		69,285
Long-term liabilities:
Convertible notes, long-term	145,314		141,934
Long-term imputed financing obligation	—		36,297
Long-term operating lease liabilities	9,548		—
Long-term income taxes payable	69,359		77,280
Other long-term liabilities	30,290		24,247
Total long-term liabilities	254,511		279,758
Total stockholders’ equity	973,226		1,012,112
Total liabilities and stockholders’ equity	$	1,312,161	$	1,361,155

Rambus Inc. Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)
	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018

Revenue:
Royalties	$	27,050		$	30,049		$	51,903		$	51,423
Product revenue	16,031			8,087			24,995			15,400
Contract and other revenue	15,216			18,322			29,783			36,061
Total revenue	58,297			56,458			106,681			102,884
Operating costs and expenses:
Cost of product revenue (1)	6,310			4,199				10,737			8,556
Cost of contract and other revenue	6,717			11,089			13,488			23,211
Research and development (1)	37,890			37,696			78,509			77,813
Sales, general and administrative (1)	24,908			24,483			52,553			54,681
Restructuring charges (recoveries)	2,528			(1,022		)	2,859			2,223
Impairment of assets held for sale	16,990			—			16,990			—
Total operating costs and expenses	95,343			76,445			175,136			166,484
Operating loss	(37,046		)	(19,987		)	(68,455		)	(63,600		)
Interest income and other income (expense), net	6,972			8,249			14,385			17,365
Interest expense	(2,534		)	(4,634		)	(4,805		)	(9,055		)
Interest and other income (expense), net	4,438			3,615			9,580			8,310
Loss before income taxes	(32,608		)	(16,372		)	(58,875		)	(55,290		)
Provision for (benefit from) income taxes	4,372			(1,015		)	4,681			(4,244		)
Net loss	$	(36,980	)	$	(15,357	)	$	(63,556	)	$	(51,046	)
Net loss per share:
Basic	$	(0.33	)	$	(0.14	)	$	(0.58	)	$	(0.47	)
Diluted	$	(0.33	)	$	(0.14	)	$	(0.58	)	$	(0.47	)
Weighted average shares used in per share calculation
Basic	110,875			107,737			110,287			108,542
Diluted	110,875			107,737			110,287			108,542

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