Revenues for the fourth quarter of 2008 were $37.6 million, up 27.8% sequentially from the third quarter of 2008 due primarily to the receipt of the withheld royalties related to the now vacated Federal Trade Commission (“FTCâ€) order and increased royalties from our technology licenses. Revenue for the fourth quarter of 2008 was down 7.2% from the fourth quarter of last year. Revenues for the fiscal year were $142.5 million, down 20.8% from last fiscal year, as a result of lower royalties.
“It was a challenging year yet we finished the fourth quarter above guidance thanks to strong technology royalties as well as a one-time benefit of withheld royalties received once the FTC’s order was vacated,†said Harold Hughes, president and chief executive officer at Rambus. “In a time of considerable economic uncertainty, we have the financial strength to continue innovating in our focus markets and vigorously pursue fair compensation for the use of our patented inventions.â€
Total costs and expenses for the fourth quarter of 2008 were $55.6 million, which included $8.7 million of stock-based compensation expenses, $0.2 million of restructuring related expenses and a net recovery of $0.3 million for previous stock-based compensation restatement and related legal expenses as compared to total costs and expenses of $60.0 million for the third quarter of 2008, which included $9.0 million of stock-based compensation expenses, $4.0 million of restructuring related expenses, $2.2 million of asset impairment expenses and $0.4 million for previous stock-based compensation restatement and related legal expenses. General litigation expenses for the fourth quarter of 2008 were $17.7 million, an increase of $2.0 million from the third quarter of 2008.
Total costs and expenses for the fourth quarter of 2007 were $72.6 million, which included $16.4 million of stock-based compensation and $0.8 million of previous stock-based compensation restatement and related legal expenses. General litigation expenses in the fourth quarter of 2007 were $16.1 million.
Interest and other income, net, for the fourth quarter of 2008 were $6.8 million, which included $4.4 million in gain from the repurchase of convertible notes, as compared to interest and other income, net, of $2.7 million in the third quarter of 2008 and $5.3 million in the fourth quarter of 2007.
Total costs and expenses for the fiscal year 2008 were $231.2 million, which included $37.2 million of stock-based compensation expenses, $4.2 million of restructuring-related expenses, $2.2 million of asset impairment expenses and $3.3 million for the previous stock-based compensation restatement and related legal expenses, as compared to total costs and expenses of $250.1 million for fiscal year 2007, which included $44.8 million of stock-based compensation expenses and $19.5 million for previous stock-based compensation restatement and related legal expenses. General litigation expenses for the year were $55.7 million, an increase of $16.2 million from fiscal year 2007.
Net loss for the fourth quarter of 2008 was $10.7 million as compared to a net loss of $27.9 million in the previous quarter and a net loss of $14.6 million in the fourth quarter of 2007. Net loss per share for the fourth quarter of 2008 was $0.10 as compared to a net loss per share of $0.27 for the previous quarter and a net loss per share of $0.14 for the fourth quarter of 2007.
Net loss for the fiscal year 2008 was $195.9 million as compared to a net loss of $27.7 million for the fiscal year 2007. Net loss per share for the fiscal year 2008 was $1.87 as compared to a net loss per share of $0.27 for the fiscal year 2007.
Cash, cash equivalents and marketable securities as of December 31, 2008 were $345.9 million, down approximately $33.1 million from September 30, 2008 and down approximately $95.0 million from December 31, 2007. During the fourth quarter of 2008, the Company repurchased approximately 1.6 million shares of common stock with an aggregate value of $14.3 million. Additionally, Rambus repurchased approximately $23.1 million in face value of its convertible notes for approximately $18.7 million, resulting in a gain of $4.4 million in the fourth quarter of 2008. During 2008, the Company repurchased approximately 3.6 million shares of common stock with an aggregate value of $49.2 million. The Company also paid approximately $18.3 million for a settlement related to the class action lawsuit during 2008.
The conference call discussing fourth quarter and year-end results will be webcast live via the Rambus Investor Relations website (http://investor.rambus.com) at 2:00 p.m. Pacific Time today. A replay will be available following the call on Rambus’ Investor Relations website and for one week at the following numbers: (888) 203-1112 (domestic) or (719) 457-0820 (international) with ID# 4263715.
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About Rambus Inc.
Rambus is one of the world’s premier technology licensing companies specializing in the invention and design of high-speed memory architectures. Additional information is available at www.rambus.com.