August 23, 2012 – BUSINESS WIRE — Rambus Inc. (NASDAQ:RMBS), a technology licensing company, will undergo a restructuring and related cost saving measures to cut its expenses by$30-35 million annually. The majority of the reduction in expenses are being made in general and administrative, while the company continues to invest in strategic businesses.
“After reviewing our expenses in detail, we have concluded that the support infrastructure can be reduced to improve profitability,” said Dr. Ronald Black, Rambus CEO. This includes a 15% cut to its workforce and a new, 3-business organization structure around memory and interfaces, lighting and display technologies, and Cryptography Research Inc.
Rambus recently partnered with the Industrial Technology Research Institute (ITRI) in Taiwan on the development of interconnect and 3D packaging technologies.
“While we have refined some of our R&D investments, we are preserving all of our strategic initiatives as we believe they will drive significant growth in the future,” Black added. The engineering design teams, Rambus Labs, and other strategic initiatives will be consolidated under Dr. Martin Scott, who will take the new role of CTO.
The reductions in expense and associated workforce will be completed in 2012. Satish Rishi, Rambus CFO, stated: “We expect to take a charge for severance, on a cash basis, of approximately $6 million over the next two quarters. We are also reviewing our assets, businesses, and other contractual obligations and may take additional charges by the end of the year. Excluding these charges, and including additional investment in strategic initiatives, we expect significant net cash savings of approximately $30-$35 million annually.” Jerome Nadel will be joining Rambus as chief marketing officer, responsible for repositioning the company and creating closer relationships with customers.
-Memory and Interfaces, led by Kevin Donnelly
-Cryptography Research Inc., led by Paul Kocher
-Lighting and Display Technologies, led by Jeffery Parker.
Rambus is a technology licensing company. Additional information is available at www.rambus.com.