Press Release

Rambus Reports First Quarter Results

Revenue of $39.7 million, loss per share of $0.12 cents for the first quarter

Los Altos, California, United States  - 24/04/2008   Rambus Inc. (NASDAQ:RMBS), one of the world's premier technology licensing companies specializing in high-speed memory architectures, today reported financial results for the first quarter of 2008.

Revenues for the first quarter were $39.7 million, down 2.0% sequentially from the fourth quarter and down 20.8% over the first quarter of last year.

"While we delivered revenue at the high end of our guidance, we're nevertheless unsatisfied with the year-over-year result," said Harold Hughes, president and chief executive officer at Rambus. "Our challenge now is to translate our recent legal victories into renewed licensing momentum for our patented innovations and leadership products."

Total costs and expenses for the first quarter of 2008 were $63.0 million, which included $10.5 million of stock-based compensation expenses and $0.9 million of restatement and related legal expenses. This compares to total costs and expenses of $72.6 million for the fourth quarter of 2007, which included $16.4 million of stock-based compensation expenses, $0.8 million of restatement and related legal expenses and $3.0 million of severance expenses. General litigation expenses for the quarter were $13.2 million, a decrease of $2.9 million from the fourth quarter of 2007. As compared to the first quarter of last year, total costs and expenses increased from $61.6 million, which included $9.4 million of stock-based compensation expenses and $7.0 million of restatement and related legal expenses. General litigation expenses in the first quarter of 2008 increased $8.3 million from the first quarter of 2007.

Net loss for the first quarter of 2008 was $12.6 million as compared to a net loss of $14.6 million in the fourth quarter of 2007 and a net loss of $3.9 million in the first quarter of 2007. Net loss per share for the first quarter of 2008 was $0.12 as compared to a net loss per share of $0.14 in the fourth quarter of 2007 and a net loss per share of $0.04 for the first quarter of 2007.

Cash, cash equivalents and marketable securities as of March 31, 2008 were $382.0 million, down approximately $58.9 million from December 31, 2007. During the first quarter of 2008, the Company repurchased approximately 1.4 million shares of common stock at an aggregate expense of $24.9 million. In addition, the Company transferred approximately $18.3 million to an escrow account pursuant to the settlement agreement in the consolidated class action lawsuit regarding stock options allegations.

The conference call discussing first quarter results will be available live via the Rambus website (http://investor.rambus.com) at 2:00 p.m. Pacific Time today. The call will be webcast and can be accessed through the Rambus website. A replay will be available following the call on Rambus’ Investor Relations website or for one week at the following numbers: (888) 203-1112 (domestic) or (719) 457-0820 (international) with ID# 3632485.


Condensed Consolidated Balance Sheets

(In thousands)
(Unaudited)

  March 31,
2008		   December 31,
2007
Assets    
Current assets:    
Cash and cash equivalents
 $ 124,861 $ 119,391
Marketable securities
 257,165 321,491
Accounts receivable
 5,636 442
Unbilled receivables
 1,760 1,478
Prepaids and other current assets
 13,936 8,349
Deferred taxes
 11,595 11,595
Restricted cash
 18,345 -
Total current assets
 433,298 462,746
Restricted cash 2,416 2,286
Deferred taxes, long-term 121,643 116,209
Intangible assets, net 12,381 13,441
Property and equipment, net 28,497 24,587
Goodwill 4,454 4,454
Other non-current assets 5,746 3,624
Total assets
 $ 608,435 $ 627,347

Liabilities and Stockholders' Equity    
Current liabilities:    
Accounts payable
 $ 12,014 $ 11,283
Accrued payroll and related benefits
 10,467 9,985
Accrued litigation expenses
 24,097 26,234
Other accrued liabilities
 8,765 5,894
Deferred revenue
 3,799 2,756
Total current liabilities
 59,142 56,152
Long-term liabilities:    
Convertible notes
 160,000 160,000
Other long-term liabilities
 4,052 4,111
Total long-term liabilities
 164,052 164,111
Total stockholders' equity 385,241 407,084
Total liabilities and stockholders' equity
 $ 608,435 $ 627,347



Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)
(Unaudited)

  Three Months Ended
  March 31,
2008		   March 31,
2007
Revenue:    
Royalty revenue
 $ 33,093 $ 43,746
Contract revenue
 6,645 6,404
Total revenues
 39,738 50,150
Costs and expenses:    
Cost of contract revenues (1)
 7,233 6,215
Research and development (1)
 21,502 23,430
Marketing, general and administrative (1)
 33,321 24,965
Costs of restatement and related legal activities
 912 7,009
Total costs and expenses
 62,968 61,619
Operating loss (23,230) (11,469)
Interest and other income, net 4,595 5,194
Loss before income taxes (18,635) (6,275)
Benefit from income taxes (6,001) (2,387)
Net loss $ (12,634) $ (3,888)
Net loss per share:    
Basic
 $ (0.12) $ (0.04)
Diluted
 $ (0.12) $ (0.04)
Weighted-Average Shares used in computing per share amounts:    
Basic
 104,683 103,820
Diluted
 104,683 103,820
 
(1) Total stock-based compensation expense for the three month periods ended March 31, 2008 and March 31, 2007 are presented as follows:
 
  Three Months Ended
  March 31,
2008		   March 31,
2007
Cost of contract revenues $ 1,918 $ 1,091
Research and development $ 3,904 $ 3,383
Marketing, general and administrative $ 4,707 $ 4,943


Über Rambus Inc.

Rambus ist eines der weltweit führenden Technologielizenzierungsunternehmen und auf die Erfindung und Entwicklung von Hochgeschwindigkeits-Chip-Schnittstellen spezialisiert. Seit seiner Gründung im Jahr 1990 unterstützt das Unternehmen mit Innovationen, richtungsweisenden Technologien und anerkanntem Integrations-Knowhow branchenführende Chip- und Systemhersteller, damit diese ihre hochwertigen Produkte auf den Markt bringen können. Die Technologie und Produkte von Rambus lösen hochkomplexe Problemstellungen von Kunden auf Chip- und Schnittstellenebene und ermöglichen beispiellose Leistungen bei Anwendungen aus den Bereichen IT, Kommunikation und Unterhaltungselektronik. Rambus lizenziert sowohl das eigene erstklassige Patent-Portfolio als auch die Familie der führenden Schnittstellenprodukte und der Produkte nach Industriestandard. Der Hauptsitz von Rambus befindet sich in Los Altos, Kalifornien. Das Unternehmen hat regionale Niederlassungen in North Carolina, Indien, Deutschland, Japan und Taiwan. Weitere Informationen finden Sie unter www.rambus.com.

 

Contacts

Nicole Noutsious
Rambus Investor Relations
(650) 947-5050
ir@rambus.com

Linda Ashmore
Rambus Public Relations
(650) 947-5411
lashmore@rambus.com