Rambus Reports Fourth Quarter and Full Year Financial Results

Fourth Quarter Fiscal 2011 Business and Financial Highlights

  • Quarterly revenue of $83.4 million; non-GAAP customer licensing income of $84.5 million
  • Annual revenue of $312.4 million; non-GAAP customer licensing income of $317.8 million
  • Fourth quarter GAAP diluted loss per share of $0.26; fourth quarter non-GAAP diluted income per share of $0.08
  • Annual GAAP diluted loss per share of $0.39; annual non-GAAP diluted income per share of $0.41
  • Signed five-year patent license agreement with Broadcom Corporation and settled all outstanding claims, including resolution of past use of Rambus’ patented innovations

SUNNYVALE, Calif. — (BUSINESS WIRE) — January 26, 2012 — Rambus Inc. (NASDAQ: RMBS), one of the world’s premier technology licensing companies, today reported financial results for the fourth quarter and year ended December 31, 2011.

GAAP Financial Results:

Revenue for the fourth quarter of 2011 was $83.4 million, down 17% sequentially from the third quarter of 2011 primarily due to recognition of various one-time royalty revenues during the third quarter of 2011 from licensing agreements with Freescale and a major smartphone and tablet manufacturer. As compared to the fourth quarter of 2010, revenue was down 8% primarily due to a one-time recognition of royalty revenue during the fourth quarter of 2010 from a licensing agreement with Elpida. Revenue for the year ended December 31, 2011 was $312.4 million, down 3% over the same period of last year, primarily due to the one-time recognition of royalty revenue from the settlement agreement signed with Samsung in 2010 which was partially offset by the revenue recognized from licensing agreements with NVIDIA, Broadcom, Freescale and a major smartphone and tablet manufacturer in 2011.

Total operating costs and expenses for the fourth quarter of 2011 were $101.5 million, which included general litigation expenses of $16.8 million, $6.5 million of stock-based compensation expenses, $13.5 million for previous stock-based compensation restatement and related legal expenses, and retention bonuses and amortization expenses related to the acquisition of Cryptography Research Inc., or CRI, of $13.1 million. This is compared to total operating costs and expenses for the third quarter of 2011 of $89.5 million, which included general litigation expenses of $23.5 million, $7.2 million of stock-based compensation expenses, $0.8 million for previous stock-based compensation restatement and related legal expenses, and deal costs, retention bonuses and amortization expenses related to the acquisition of CRI of $12.7 million. Total operating costs and expenses in the fourth quarter of 2010 were $48.0 million, which included general litigation expenses of $5.8 million, $7.3 million of stock-based compensation expenses, $0.8 million for previous stock-based compensation restatement and related legal expenses, and gain from the Samsung settlement of $10.3 million.

Total operating costs and expenses for the year ended December 31, 2011 were $313.9 million, which included a $6.2 million gain related to the Samsung settlement, $28.0 million of stock-based compensation expenses, $16.2 million for previous stock-based compensation restatement and related legal expenses, and deal costs, retention bonuses and amortization expenses related to the acquisition of CRI of $34.2 million. This is compared to total operating costs and expenses of $96.5 million for the same period of 2010, which included a $126.8 million gain related to the Samsung settlement, $30.5 million of stock-based compensation expenses and $4.2 million for previous stock-based compensation restatement and related legal expenses. General litigation expenses for the year ended December 31, 2011 were $61.0 million as compared to $22.7 million for the same period in 2010.

Net loss for the fourth quarter of 2011 was $28.7 million as compared to net income of $0.5 million in the third quarter of 2011 and net income of $33.1 million in the fourth quarter of 2010. Diluted net loss per share for the fourth quarter of 2011 was $0.26 as compared to net income per share of $0.00 in the third quarter of 2011 and net income per share of $0.29 in the fourth quarter of 2010.

Net loss for the year ended December 31, 2011 was $43.1 million as compared to net income of $150.9 million for the same period of 2010. Diluted net loss per share for the year ended December 31, 2011 was $0.39 as compared to net income per share of $1.30 for the same period of 2010.

Non-GAAP Financial Results (1):

Customer licensing income in the fourth quarter of 2011 was $84.5 million, down 8% sequentially from the third quarter of 2011 primarily due to various one-time payments of royalty revenue during the third quarter of 2011 from licensing agreements with Freescale Semiconductor Inc. and a major smartphone and tablet manufacturer. As compared to the fourth quarter of 2010, customer licensing income was down 17% primarily due to a one-time payment of royalty revenue during the fourth quarter of 2010 from the licensing agreement with Elpida Memory, Inc. Customer licensing income for the year ended December 31, 2011 was $317.8 million, down 29% over the same period of last year, primarily due to the one-time payment from the settlement agreement signed with Samsung Electronics Co., Ltd. in 2010 which was partially offset by the royalties received from licensing agreements signed with NVIDIA Corporation, Broadcom, Freescale and a major smartphone and tablet manufacturer.

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