EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

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NEWS RELEASE

RAMBUS FILES FISCAL 2006 FINANCIAL STATEMENTS

LOS ALTOS, Calif. – September 14, 2007 – Rambus Inc. (Nasdaq:RMBS) today announced that it has filed with the Securities and Exchange Commission (SEC) its quarterly reports on Form 10-Q for the quarters ended June 30, 2006 and September 30, 2006, and its annual report on Form 10-K for the year ended December 31, 2006. The Company expects to file its quarterly reports on Form 10-Q for the quarters ended March 31, 2007 and June 30, 2007 as soon as practicable. Once it files the 2007 quarterly reports, the Company expects that it will be current in its SEC filings and expects to regain compliance with NASDAQ’s continued listing requirements.

“The completion of these filings is an important step forward,” said Harold Hughes, president and chief executive officer at Rambus. “We are committed to the best governance practices and providing the markets with full transparency of our accounting practices and controls.”

As previously announced, the Company’s filings were delayed as a result of the independent investigation relating to the Company’s historical stock option granting practices and related accounting. Upon completion of that investigation, the Company recorded a $169.4 million non-cash, pre-tax charge from 1997 through 2005.

As reported in the annual report on Form 10-K, the Company’s net loss for 2006 totaled $13.8 million. Loss before income taxes for this period was $25.7 million, which included $40.5 million of stock based compensation, $13.4 million in expenses related to the stock option investigation and $18.0 million of accruals for the proposed settlement of the class action suit related to the Company’s historical stock option granting practices.

About Rambus Inc.

Rambus is one of the world’s premier technology licensing companies specializing in the invention and design of high-speed chip architectures. Since its founding in 1990, the Company’s patented innovations, breakthrough technologies and renowned integration expertise have helped industry-leading chip and system companies bring superior products to market. Rambus’ technology and products solve customers’ most complex chip and system-level interface challenges enabling unprecedented performance in computing, communications and consumer electronics applications. Rambus licenses both its world-class patent portfolio as well as its family of leadership and industry-standard interface products. Headquartered in Los Altos, California, Rambus has regional offices in North Carolina, India, Germany, Japan, Korea and Taiwan. Additional information is available at www.rambus.com.

Forward-Looking Statements

This release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 relating to the Company’s financial restatements, the timing of the filing of its financial reports, and compliance with NASDAQ’s listing requirements. Such forward-looking statements are based on current expectations, estimates and projections, management’s beliefs, and certain assumptions made by the Company’s management, and there can be no assurance concerning the timing of financial restatements and filing of its financial reports or the Company’s adequacy for continued listing on NASDAQ. Actual results may differ materially. Our


business generally is subject to a number of risks which are described in our SEC filings including our Forms 10-K and 10-Q. We undertake no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

 


RAMBUS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

 

     Twelve Months Ended December 31,
(in thousands, except per share amounts)    2006     2005    2004
           As restated    As restated

Revenues:

       

Contract revenues

   $ 26,408     $ 26,876    $ 24,742

Royalties

     168,916       130,322      120,132
                     

Total revenues

     195,324       157,198      144,874
                     

Costs and expenses:

       

Cost of contract revenues *

     30,392       23,733      23,527

Research and development *

     68,977       49,116      38,303

Marketing, general and administrative *

     104,561       80,418      62,270

Costs of restatement and related legal activities

     31,436       —        —  
                     

Total costs and expenses

     235,366       153,267      124,100
                     

Operating income (loss)

     (40,042 )     3,931      20,774

Interest and other income, net

     14,337       34,830      8,368
                     

Income (loss) before income taxes

     (25,705 )     38,761      29,142

Provision for (benefit from) income taxes

     (11,889 )     9,821      6,781
                     

Net income (loss)

   $ (13,816 )   $ 28,940    $ 22,361
                     

Net income (loss) per share:

       

Basic

   $ (0.13 )   $ 0.29    $ 0.22
                     

Diluted

   $ (0.13 )   $ 0.28    $ 0.21
                     

Weighted average shares used in per share calculations:

       

Basic

     103,048       99,876      101,931
                     

Diluted

     103,048       103,530      108,547
                     

* Includes stock-based compensation:

       

Cost of contract revenues

   $ 8,155     $ 3,897    $ 3,293

Research and development

   $ 14,902     $ 8,056    $ 5,664

Marketing, general and administrative

   $ 17,466     $ 8,507    $ 9,818

 


RAMBUS INC.

CONSOLIDATED BALANCE SHEETS

 

     December 31,  
(in thousands)    2006     2005  
           As restated  

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 73,304     $ 42,391  

Marketable securities

     351,055       118,416  

Accounts receivable

     846       954  

Unbilled receivables

     1,748       —    

Deferred and prepaid taxes

     11,388       3,827  

Prepaids and other current assets

     4,403       4,419  
                

Total current assets

     442,744       170,007  

Marketable securities, long term

     11,982       194,583  

Restricted cash

     2,287       2,279  

Deferred taxes, long term

     98,193       98,544  

Intangible assets, net

     18,697       23,650  

Property and equipment, net

     26,019       19,622  

Goodwill

     3,315       3,315  

Other assets

     1,380       3,953  
                

Total assets

   $ 604,617     $ 515,953  
                

LIABILITIES

    

Current liabilities:

    

Accounts payable

   $ 10,429     $ 4,374  

Accrued salaries and benefits

     12,788       5,894  

Accrued litigation expenses

     23,143       4,633  

Other accrued liabilities

     6,075       4,538  

Convertible notes

     160,000       —    

Deferred revenue

     6,003       973  
                

Total current liabilities

     218,438       20,412  
                

Convertible notes

     —         160,000  

Deferred revenue, less current portion

     1,554       8,317  

Other long-term liabilities

     2,337       3,757  
                

Total liabilities

     222,329       192,486  
                

STOCKHOLDERS’ EQUITY

    

Common Stock

     104       99  

Additional paid in capital

     550,210       478,519  

Deferred stock-based compensation

     —         (20,122 )

Accumulated deficit

     (167,396 )     (133,382 )

Accumulated other comprehensive loss

     (630 )     (1,647 )
                

Total stockholders’ equity

     382,288       323,467  
                

Total liabilities and stockholders’ equity

   $ 604,617     $ 515,953  
                

 


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RMBSER

Press Contact:

Linda Ashmore

Rambus Inc.

(650) 947-5411

lashmore@rambus.com

Investor Relations:

Nicole Noutsios

Rambus Inc.

(650) 947-5050

ir@rambus.com