Rambus Reports Second Quarter Financial Results

Business and Financial Highlights

  • Signed comprehensive license agreement with Qualcomm for innovative memory, interface and security technologies
  • Unveiled CryptoManager™ secure feature management platform with Qualcomm as lead customer
  • Generated quarterly revenue of $76.5 million
  • Quarterly GAAP diluted net income per share of $0.04
  • Quarterly non-GAAP diluted net income per share of $0.16

SUNNYVALE, Calif. — (BUSINESS WIRE) — July 21, 2014 — Rambus Inc. (NASDAQ: RMBS), the innovative technology solutions company that brings invention to market, today reported financial results for the second quarter ended June 30, 2014.

GAAP Financial Results:

Revenue for the second quarter of 2014 was $76.5 million, down 2% on a sequential basis from the first quarter of 2014 primarily due to a one-time catch-up payment from the new license agreement signed with Nanya Technology Corporation during the first quarter of 2014. As compared to the second quarter of 2013, revenue was up 32% primarily due to the license agreements signed with SK hynix, Micron Technology, Nanya Technology Corporation and Qualcomm, offset by lower royalty revenue from Samsung.

Revenue for the six months ended June 30, 2014 was $154.8 million, which was up 24% over the prior year period, primarily due to the license agreements signed with SK hynix, Micron Technology, Nanya Technology Corporation and Qualcomm, offset by lower royalty revenue from Samsung.

Total operating costs and expenses for the second quarter of 2014 were $56.4 million, 2% higher than the previous quarter and 8% higher than the second quarter of 2013. Second quarter operating costs and expenses of $56.4 million included $4.9 million of stock-based compensation expenses, $6.8 million of amortization expenses and $1.0 million of retention bonus expense from acquisitions. In comparison, total operating costs and expenses for the first quarter of 2014 of $55.1 million included $2.9 million of stock-based compensation expenses, $6.8 million of amortization expenses and $1.4 million of retention bonus expense from acquisitions. Total operating costs and expenses for the second quarter of 2013 were $52.2 million, which included a credit of $6.2 million of general litigation expenses (primarily due to the $8.5 million one-time reversal of accrued SK hynix related litigation costs), $3.6 million of stock-based compensation expenses, $7.0 million of amortization expenses and $3.4 million of retention bonus expense from acquisitions. The change in total operating costs and expenses in the second quarter of 2014 as compared to the first quarter of 2014 was primarily due to increased stock-based compensation expenses partially offset by lower bonus accrual. The change in total operating costs and expenses in the second quarter of 2014 as compared to the second quarter of 2013 was as a result of the one-time reversal of accrued SK hynix related litigation costs in the second quarter of 2013 and higher cost of sales due to the sale of lighting products offset by lower retention bonus expense from acquisitions, bonus accrual and consulting expenses.

Total operating costs and expenses for the six months ended June 30, 2014 were $111.5 million, 5% lower than the six months ended June 30, 2013. The six months operating costs and expenses of $111.5 million included $7.8 million of stock-based compensation expenses, $13.6 million of amortization expenses and $2.5 million of retention bonus expense from acquisitions. This is compared to total operating costs and expenses for the six months ended June 30, 2013 of $117.6 million, which included $8.5 million of stock-based compensation expenses, $14.0 million of amortization expenses, $8.5 million one-time reversal of accrued SK hynix related litigation costs, $7.4 million of retention bonus expense from acquisitions and $2.2 million of restructuring charges. The change in total operating costs and expenses was primarily attributable to lower retention bonus expense from acquisitions, bonus accrual and lower consulting costs offset by higher cost of sales due to the sale of lighting products and as a result of the one-time reversal of accrued SK hynix related litigation costs in the second quarter of 2013.

Net income for the second quarter of 2014 was $5.0 million as compared to net income of $7.8 million in the first quarter of 2014 and net loss of $7.8 million in the second quarter of 2013. Diluted net income per share for the second quarter of 2014 was $0.04 as compared to diluted net income per share of $0.07 in the first quarter of 2014 and diluted net loss per share of $0.07 in the second quarter of 2013.

Net income for the six months ended June 30, 2014 was $12.8 million as compared to a net loss of $18.2 million for the same period of 2013. Diluted net income per share for the six months ended June 30, 2014 was $0.11 as compared to a diluted net loss per share of $0.16 for the same period of 2013.

Non-GAAP Financial Results (1):

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