Non-cash interest expense on convertible notes. The Company incurs non-cash interest expense related to its convertible notes. The Company excludes non-cash interest expense related to its convertible notes to provide more accurate comparisons of the Company’s results with other peer companies and to more accurately reflect the Company’s ongoing operations.
Income tax adjustments. For purposes of internal forecasting, planning and analyzing future periods that assume net income from operations, the Company estimates a fixed, long-term projected tax rate of approximately 36 percent, which consists of estimated U.S. federal and state tax rates, and excludes tax rates associated with certain items such as withholding tax, tax credits, deferred tax asset valuation allowance and the release of any deferred tax asset valuation allowance. Accordingly, the Company has applied the 36 percent tax rate to its non-GAAP financial results for all periods. The Company has provided below a reconciliation of its GAAP provision for income taxes and GAAP effective tax rate to the assumed non-GAAP provision for income taxes and non-GAAP effective tax rate.
On occasion in the future, there may be other items, such as asset impairments and 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.
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 2016 revenue for the first quarter and year, and estimated, fixed, long-term projected tax rates. 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.
About Rambus Inc.
Rambus creates cutting-edge semiconductor and IP products, spanning memory and interfaces to security, smart sensors and lighting. Our chips, customizable IP cores, architecture licenses, tools, services, training and innovations improve the competitive advantage of our customers. We collaborate with the industry, partnering with leading ASIC and SoC designers, foundries, IP developers, EDA companies and validation labs. For more information, visit www.rambus.com.
RMBSFN
| Rambus Inc. | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| (In thousands) | ||||||
| (Unaudited) | ||||||
| December 31, | December 31, | |||||
| 2015 | 2014 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 143,764 | $ | 154,126 | ||
| Marketable securities | 143,942 | 145,983 | ||||
| Accounts receivable | 16,408 | 6,001 | ||||
| Prepaids and other current assets | 11,476 | 8,541 | ||||
| Deferred taxes | — | 187 | ||||
| Total current assets | 315,590 | 314,838 | ||||
| Intangible assets, net | 64,266 | 89,371 | ||||
| Goodwill | 116,899 | 116,899 | ||||
| Property, plant and equipment, net | 56,616 | 64,023 | ||||
| Deferred taxes, long-term | 162,485 | 536 | ||||
| Other assets | 3,648 | 2,612 | ||||
| Total assets | $ | 719,504 | $ | 588,279 | ||
| LIABILITIES & STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 4,096 | $ | 6,962 | ||
| Accrued salaries and benefits | 12,278 | 14,840 | ||||
| Other accrued liabilities | 11,992 | 12,856 | ||||
| Total current liabilities | 28,366 | 34,658 | ||||
| Long-term liabilities: | ||||||
| Convertible notes, long-term | 120,901 | 115,089 | ||||
| Long-term imputed financing obligation | 38,625 | 39,063 | ||||
| Other long-term liabilities | 5,079 | 7,847 | ||||
| Total long-term liabilities | 164,605 | 161,999 | ||||
| Total stockholders’ equity | 526,533 | 391,622 | ||||
| Total liabilities and stockholders’ equity | $ | 719,504 | $ | 588,279 | ||
| Rambus Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Revenue: | ||||||||||||||||
| Royalties | $ | 66,242 | $ | 64,134 | $ | 262,415 | $ | 271,521 | ||||||||
| Contract and other revenue | 10,531 | 7,906 | 33,863 | 25,037 | ||||||||||||
| Total revenue | 76,773 | 72,040 | 296,278 | 296,558 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Cost of revenue (1) | 11,340 | 10,748 | 45,344 | 41,947 | ||||||||||||
| Research and development (1) | 25,604 | 28,445 | 111,110 | 110,025 | ||||||||||||
| Sales, general and administrative (1) | 16,853 | 19,131 | 70,554 | 74,770 | ||||||||||||
| Restructuring charges | 3,576 | — | 3,576 | 39 | ||||||||||||
| Gain from sale of intellectual property | (424 | ) | (3,359 | ) | (3,686 | ) | (3,529 | ) | ||||||||
| Gain from settlement | (510 | ) | (510 | ) | (2,040 | ) | (2,040 | ) | ||||||||
| Total operating costs and expenses | 56,439 | 54,455 | 224,858 | 221,212 | ||||||||||||
| Operating income | 20,334 | 17,585 | 71,420 | 75,346 | ||||||||||||
| Interest income and other income (expense), net | 350 | 156 | 1,224 | (276 | ) | |||||||||||
| Interest expense | (3,122 | ) | (3,065 | ) | (12,413 | ) | (24,820 | ) | ||||||||
| Interest and other income (expense), net | (2,772 | ) | (2,909 | ) | (11,189 | ) | (25,096 | ) | ||||||||
| Income before income taxes | 17,562 | 14,676 | 60,231 | 50,250 | ||||||||||||
| Provision for (benefit from) income taxes | 4,570 | 6,835 | (151,157 | ) | 24,049 | |||||||||||
| Net income | $ | 12,992 | $ | 7,841 | $ | 211,388 | $ | 26,201 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.12 | $ | 0.07 | $ | 1.84 | $ | 0.23 | ||||||||
| Diluted | $ | 0.11 | $ | 0.07 | $ |
1.80 |
$ | 0.22 | ||||||||
| Weighted average shares used in per share calculation | ||||||||||||||||
| Basic | 111,476 | 115,024 | 114,814 | 114,318 | ||||||||||||
| Diluted |
113,388 |
117,620 |
117,484 |
117,624 | ||||||||||||
