March 05, 2012
Electronics IP Industry - Q4 2011
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Russ Henke - Contributing Editor


by Russ Henke - Contributing Editor
Posted anew every four weeks or so, the EDA WEEKLY delivers to its readers information concerning the latest happenings in the EDA industry, covering vendors, products, finances and new developments. Frequently, feature articles on selected public or private EDA companies are presented. Brought to you by EDACafe.com. If we miss a story or subject that you feel deserves to be included, or you just want to suggest a future topic, please contact us! Questions? Feedback? Click here. Thank you!


Total operating costs and expenses for Q4
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 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 Q4
2011 was $28.716 million as compared to net income of $0.5 million in the third quarter of 2011 and net income of $33.084 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 2011 was $43.033 million as compared to net income of $150.917 million for 2010.

Diluted net loss per share for the year
2011 was $0.39 as compared to net income per share of $1.30 for 2010.

Other Recent Financial Highlights:

Cash, cash equivalents, and marketable securities as of December 31, 2011 were $289.5 million, a decrease of approximately $3.3 million from September 30, 2011. During the fourth quarter of 2011, the Company paid $10.9 million related to the settlement in the matter captioned Stuart J. Steele, et al. v. Rambus Inc., et al., related to stock option grants that were not correctly dated or accounted for prior to 2006, settling the claims against it and the individual defendants.

During the fourth quarter of 2011 and the year ended 2011, the Company recorded an income tax provision of approximately $4.3 million and $17.3 million, respectively. As the Company continues to maintain a full valuation allowance against its U.S. deferred tax assets, the Company's tax provision consists of primarily withholding taxes and current state and foreign taxes.

Huge Drop Off in RMBS Stock Value in mid-November 2011

In the second Rambus stock graph below, the huge negative swing in RMBS stock value in mid-November 2011 is obvious. EDA WEEKLY readers will recall that the cause was actually reported here last quarter under a paragraph entitled,
"Very Late Breaking News," as follows:

Rambus shares fell over 60% in value today.


Rambus investors were dealt this heavy blow on Wednesday November 16, 2011, after a court in San Francisco denied Rambus a win in Rambus' big price-fixing case against Micron and Hynix. After two months of deliberation, a jury found that Micron and Hynix were not guilty of price fixing or anti-competitive behavior. Rambus’s stock plunged almost $11 per share once the news was announced.


This was a major defeat for Rambus. Investors had apparently estimated that had it won the case, Rambus might have been able to collect anywhere from $300 million to as much as $4 billion.

Then we saw this later News

SEOUL | Thu Feb 16, 2012 12:26am EST

Feb 16 (Reuters) - South Korean chipmaker Hynix Semiconductor Inc said on Thursday that a U.S. court has rejected an antitrust claim filed against it by Rambus Inc .

The ruling by the Superior Court of the State of California follows a jury rejection in November of claims by Rambus in a $4 billion antitrust lawsuit against Hynix and U.S. peer Micron Technology Inc.

Hynix said Rambus could appeal the ruling within 60 days.

On February 3, 2012, Reuters had reported that Micron CEO Steve Appleton had died in a small plane crash.

Other Post – Q4 2011 Rambus News

On 02/06/2012  Rambus announced it had acquired privately-held
Unity Semiconductor, a memory technology company, for an aggregate of $35 million in cash. As part of this acquisition, Unity team members have joined Rambus to continue developing  next-generation non-volatile memory. Rambus says that this acquisition will expand the breadth of Rambus’ breakthrough memory technologies and will open up new markets for licensing. The boards of directors of both companies have approved the acquisition and it has closed.

“At Rambus, we are creating disruptive technologies to enable future electronic products,” said
Sharon Holt, senior vice president and general manager of the Semiconductor Business Group at Rambus. “With the addition of Unity, we can develop non-volatile memory solutions that will advance semiconductor scaling beyond the limits of today’s NAND technology. This will enable new memory architectures that help meet ever-increasing consumer demands.”

“Rambus provides our team the perfect environment to continue the technology development of non-volatile memory cells and architectures,” said
David Eggleston, president and chief executive officer at Unity Semiconductor. “Our comprehensive set of design, process and device solutions will complement Rambus’ existing strong technology portfolio and system capabilities.”

Unity has developed a novel solid state memory technology intended to replace NAND in the growing non-volatile memory market. With nine years of development history, Unity’s memory technology, CMOx™, has been designed to accelerate the commercialization of the Terabit generation of non-volatile memories. Devices using CMOx™ cell technology are expected to achieve higher density, faster performance, lower manufacturing costs and greater data reliability than NAND Flash.

 

On 02/08/2012 Rambus said it had signed a patent license agreement with NVIDIA.
 

The agreement covers the use of Rambus patented innovations in a broad range of integrated circuit (IC) products offered by NVIDIA. In addition, the two companies have settled all outstanding claims, including resolution of past use of Rambus’ patented devices. The term of this agreement is five years; other details are confidential.

“This is an important license agreement as it settles our differences and allows us to move forward with NVIDIA, the leader in visual and parallel computing,” said
Harold Hughes, president and chief executive officer at Rambus . “Looking forward, we have the opportunity to focus on developing solutions in concert with our licensees to help bring compelling, unique products to market.”



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-- Russ Henke, EDACafe.com Contributing Editor.




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