Rambus Reports Second Quarter Financial Results

Business and Financial Highlights:

  • Generated quarterly revenue of $76.5 million
  • Signed agreement to acquire Snowbush IP assets to bolster position in SerDes IP and product offerings
  • Signed agreement to acquire Inphi Memory Interconnect Business to create instant position in memory chipset market
  • Signed agreement with Dish TV India to protect pay TV content for leading in-field provider
  • Quarterly GAAP diluted net income per share of $0.03; quarterly non-GAAP diluted net income per share of $0.15

SUNNYVALE, Calif. — (BUSINESS WIRE) — July 18, 2016 — Rambus Inc. (NASDAQ: RMBS) today reported financial results for the second quarter ended June 30, 2016.

GAAP Financial Results:

Revenue for the second quarter of 2016 was $76.5 million, which was up 5% from the first quarter of 2016 primarily due to higher revenue from security technology development projects, including revenue from the acquisition of SCS. As compared to the second quarter of 2015, revenue was up 5% primarily due to higher revenue from security technology development projects, including revenue from the acquisition of SCS, offset by lower royalty revenue from various customers.

Revenue for the six months ended June 30, 2016 was $149.2 million, which was up 2% over the prior year period, primarily due to higher revenue from security technology development projects, offset by lower royalty revenue from various customers.

Total operating costs and expenses for the second quarter of 2016 were $64.5 million, 2% higher than the previous quarter and 13% higher than the second quarter of 2015. Second quarter operating costs and expenses of $64.5 million included $5.0 million of stock-based compensation expenses, $8.2 million of amortization expenses and $0.8 million of acquisition-related transaction costs. In comparison, total operating costs and expenses for the first quarter of 2016 of $63.4 million included $4.9 million of stock-based compensation expenses, $7.7 million of amortization expenses and $1.8 million of acquisition-related transaction costs. Total operating costs and expenses for the second quarter of 2015 were $57.3 million which included $4.4 million of stock-based compensation expenses and $6.3 million of amortization expenses. The change in total operating costs and expenses in the second quarter of 2016 as compared to the first quarter of 2016 was primarily due to higher consulting costs, higher prototyping costs, higher headcount related costs, higher amortization expense due to the SCS acquisition in the first quarter of 2016 and lower gain from settlement, partially offset by lower bonus accrual expense and lower acquisition-related transaction costs. The change in total operating costs and expenses in the second quarter of 2016 as compared to the second quarter of 2015 was primarily due to higher headcount related costs, higher amortization expense, higher acquisition-related transaction costs and lower gain from sale of intellectual property, partially offset by lower prototyping costs.

Total operating costs and expenses for the six months ended June 30, 2016 were $127.9 million, 14% higher than the six months ended June 30, 2015. The six months operating costs and expenses of $127.9 million included $9.9 million of stock-based compensation expenses, $15.9 million of amortization expenses and $2.6 million of acquisition-related transaction costs. This is compared to total operating costs and expenses for the six months ended June 30, 2015 of $112.3 million, which included $8.2 million of stock-based compensation expenses and $12.6 million of amortization expenses. The change in total operating costs and expenses was primarily attributable to higher headcount related costs, higher amortization expense, higher acquisition-related transaction costs, lower gain from sale of intellectual property, higher stock-based compensation expense and higher expenses related to software design tools offset by lower prototyping costs.

Net income for the second quarter of 2016 was $3.9 million as compared to net income of $1.9 million in the first quarter of 2016 and net income of $6.9 million in the second quarter of 2015. Diluted net income per share for the second quarter of 2016 was $0.03 as compared to diluted net income per share of $0.02 in the first quarter of 2016 and diluted net income per share of $0.06 in the second quarter of 2015, respectively.

Net income for the six months ended June 30, 2016 was $5.8 million as compared to a net income of $16.4 million for the same period of 2015. Diluted net income per share for the six months ended June 30, 2016 was $0.05 as compared to a diluted net income per share of $0.14 for the same period of 2015.

Non-GAAP Financial Results (1):

Total non-GAAP operating costs and expenses in the second quarter of 2016 were $50.5 million, which was 3% higher than the previous quarter, and 9% higher than the second quarter of 2015.

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