Restructuring charges. These charges may consist of severance, contractual retention payments, exit costs and other charges and are excluded because such charges are not directly related to ongoing business results and do not reflect expected future operating expenses.
Expense on abandoned operating leases. Reflects the expense on building leases that were abandoned. The Company excludes these charges because such charges are not directly related to ongoing business results and do not reflect expected future operating expenses.
Restatement and shareholder activist costs. These charges consist of costs associated with our restatement of our financial statements and certain shareholder activist costs and are excluded because such charges are not directly related to ongoing business results and do not reflect expected future operating expenses.
Facility restoration costs. These charges consist of exit costs associated with our leased office space and are excluded because such charges are not directly related to ongoing business results and do not reflect expected future operating expenses.
Change in fair value of earn-out liability. This change is due to a reduction of acquisition purchase consideration. This is a non-recurring benefit that has no direct correlation to the operation of the Company's business.
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 24 percent for both 2021 and 2020, 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 these tax rates to its non-GAAP financial results for all periods in the relevant years to assist the Company's planning.
On occasion in the future, there may be other items, such as 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.
About Rambus Inc.
Rambus is a provider of industry-leading chips and silicon IP making data faster and safer. With over 30 years of advanced semiconductor experience, we are a pioneer in high-performance memory subsystems that solve the bottleneck between memory and processing for data-intensive systems. Whether in the cloud, at the edge or in your hand, real-time and immersive applications depend on data throughput and integrity. Rambus products and innovations deliver the increased bandwidth, capacity and security required to meet the world's data needs and drive ever-greater end-user experiences. For more information, visit rambus.com.
Forward-Looking Statements
This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including those relating to drivers of the Company's topline growth, the Company's ability to deliver ongoing profitable growth, and the Company's outlook for the second quarter of 2021. Such forward-looking statements are based on current expectations, estimates and projections, management's beliefs and certain assumptions made by the Company's management. Actual results may differ materially. The Company's 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, as well as the potential adverse impacts related to, or arising from, the Novel Coronavirus (COVID-19). The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.
Contact
Rahul Mathur
Senior Vice President, Finance and Chief Financial Officer
Rambus Inc.
(408) 462-8000
Email Contact
Rambus Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) | |||||||
| |||||||
| March 31,
|
| December 31,
| ||||
ASSETS |
|
|
| ||||
Current assets: |
|
|
| ||||
Cash and cash equivalents | $ | 109,554 |
|
| $ | 136,146 |
|
Marketable securities | 419,574 |
|
| 366,503 |
| ||
Accounts receivable | 35,937 |
|
| 27,903 |
| ||
Unbilled receivables | 137,729 |
|
| 138,813 |
| ||
Inventories | 9,926 |
|
| 14,466 |
| ||
Prepaids and other current assets | 11,616 |
|
| 15,881 |
| ||
Total current assets | 724,336 |
|
| 699,712 |
| ||
Intangible assets, net | 31,872 |
|
| 36,487 |
| ||
Goodwill | 183,222 |
|
| 183,222 |
| ||
Property, plant and equipment, net | 53,687 |
|
| 57,693 |
| ||
Operating lease right-of-use assets | 27,214 |
|
| 28,708 |
| ||
Deferred tax assets | 4,372 |
|
| 4,353 |
| ||
Unbilled receivables, long-term | 207,016 |
|
| 236,699 |
| ||
Other assets | 4,061 |
|
| 4,535 |
| ||
Total assets | $ | 1,235,780 |
|
| $ | 1,251,409 |
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|
|
|
| ||||
LIABILITIES & STOCKHOLDERS' EQUITY |
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|
| ||||
Current liabilities: |
|
|
| ||||
Accounts payable | $ | 7,802 |
|
| $ | 8,993 |
|
Accrued salaries and benefits | 14,113 |
|
| 23,326 |
| ||
Deferred revenue | 13,534 |
|
| 10,198 |
| ||
Income taxes payable, short-term | 20,186 |
|
| 20,064 |
| ||
Operating lease liabilities | 7,026 |
|
| 4,724 |
| ||
Other current liabilities | 17,741 |
|
| 18,559 |
| ||
Total current liabilities | 80,402 |
|
| 85,864 |
| ||
Long-term liabilities: |
|
|
| ||||
Convertible notes, long-term | 157,905 |
|
| 156,031 |
| ||
Long-term operating lease liabilities | 32,535 |
|
| 34,305 |
| ||
Long-term income taxes payable | 36,391 |
|
| 41,333 |
| ||
Deferred tax liabilities | 14,711 |
|
| 14,276 |
| ||
Other long-term liabilities | 4,430 |
|
| 6,894 |
| ||
Total long-term liabilities | 245,972 |
|
| 252,839 |
| ||
Total stockholders' equity | 909,406 |
|
| 912,706 |
| ||
Total liabilities and stockholders' equity | $ | 1,235,780 |
|
| $ | 1,251,409 |
|