Rambus Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

Three Months Ended
March 31,

2020

2019

Revenue:

Royalties

$

19,694

$

24,853

Product revenue

30,728

8,964

Contract and other revenue

13,567

14,567

Total revenue

63,989

48,384

Cost of revenue:

Cost of product revenue (1)

10,343

4,427

Cost of contract and other revenue

1,198

2,908

Amortization of acquired intangible assets

4,344

3,863

Total cost of revenue

15,885

11,198

Gross profit

48,104

37,186

Operating expenses:

Research and development (1)

36,664

40,619

Sales, general and administrative (1)

22,895

26,520

Amortization of acquired intangible assets

348

1,125

Restructuring charges

836

331

Change in fair value of earn-out liability

(1,800)

—

Total operating expenses

58,943

68,595

Operating loss

(10,839)

(31,409)

Interest income and other income (expense), net

6,374

7,413

Interest expense

(2,555)

(2,271)

Interest and other income (expense), net

3,819

5,142

Loss before income taxes

(7,020)

(26,267)

Provision for income taxes

963

309

Net loss

$

(7,983)

$

(26,576)

Net loss per share:

Basic

$

(0.07)

$

(0.24)

Diluted

$

(0.07)

$

(0.24)

Weighted average shares used in per share calculation

Basic

112,907

109,692

Diluted

112,907

109,692

(1)

Total stock-based compensation expense for the three months ended March 31, 2020 and 2019 is presented as follows:

Three Months Ended
March 31,

2020

2019

Cost of product revenue

$

—

$

1

Research and development

$

2,613

$

3,210

Sales, general and administrative

$

3,459

$

3,978