10-Q 1 rmbs-20220331.htm 10-Q rmbs-20220331
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________
FORM 10-Q
_______________________________
(Mark One)
     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
OR
     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File Number: 000-22339
_______________________________
RAMBUS INC.
(Exact name of registrant as specified in its charter)
_______________________________
Delaware 94-3112828
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
4453 North First Street
Suite 100
San Jose, California95134
(Address of principal executive offices)(ZIP Code)
Registrant’s telephone number, including area code:
(408462-8000
________________________________________

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, $.001 Par ValueRMBSThe NASDAQ Stock Market LLC
(The NASDAQ Global Select Market)

Securities registered pursuant to Section 12(g) of the Act:
None
________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☒ Accelerated filer
Non-accelerated filer Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act).  Yes   No 
The number of shares outstanding of the registrant’s Common Stock, par value $.001 per share, was 110,235,608 as of March 31, 2022.


RAMBUS INC.
TABLE OF CONTENTS
 
 PAGE
Item 6. Exhibits
3

NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q (“Quarterly Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include, without limitation, predictions regarding the following aspects of our future:
Success in the markets of our products and services or our customers’ products;
Sources of competition;
Research and development costs and improvements in technology;
Sources, amounts and concentration of revenue, including royalties;
Success in signing and renewing license agreements;
Terms of our licenses and amounts owed under license agreements;
Technology product development;
Dispositions, acquisitions, mergers or strategic transactions and our related integration efforts;
Impairment of goodwill and long-lived assets;
Pricing policies of our customers;
Changes in our strategy and business model, including the expansion of our portfolio of inventions, products, software, services and solutions to address additional markets in memory, chip and security;
Deterioration of financial health of commercial counterparties and their ability to meet their obligations to us;
Effects of security breaches or failures in our or our customers’ products and services on our business;
Engineering, sales and general and administration expenses;
Contract revenue;
Operating results;
Continued product revenue growth;
International licenses, operations and expansion;
Effects of changes in the economy and credit market on our industry and business;
Impact of the ongoing COVID-19 pandemic, including its most recent variants, on our business operations and financial results;
Ability to identify, attract, motivate and retain qualified personnel, especially in light of a hyper-competitive compensation environment;
Effects of government regulations on our industry and business;
Manufacturing, shipping and supply partners, supply chain availability and/or sale and distribution channels;
Growth in our business;
Methods, estimates and judgments in accounting policies;
Adoption of new accounting pronouncements;
Effective tax rates, including as a result of recent U.S. tax legislation;
Restructurings and plans of termination;
Realization of deferred tax assets/release of deferred tax valuation allowance;
Trading price of our common stock;
Internal control environment;
The level and terms of our outstanding debt and the repayment or financing of such debt;
Protection of intellectual property (“IP”);
Any changes in laws, agency actions and judicial rulings that may impact the ability to enforce our IP rights;
Indemnification and technical support obligations;
Equity repurchase programs;
4

Issuances of debt or equity securities, which could involve restrictive covenants or be dilutive to our existing stockholders;
Effects of fluctuations in interest rates and currency exchange rates;
Effects of a rising rate of inflation;
Management of supply chain risks; and
Outcome and effect of potential future IP litigation and other significant litigation.
You can identify these and other forward-looking statements by the use of words such as “may,” “future,” “shall,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “intends,” “potential,” “continue,” “projecting” or the negative of such terms, or other comparable terminology. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements.
Actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under Part II, Item 1A, “Risk Factors.” All forward-looking statements included in this document are based on our assessment of information available to us at this time. We assume no obligation to update any forward-looking statements.

5

PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
RAMBUS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 (In thousands, except shares and par value)March 31,
2022
December 31,
2021
ASSETS  
Current assets:  
Cash and cash equivalents$179,129 $107,891 
Marketable securities164,562 377,718 
Accounts receivable51,232 44,065 
Unbilled receivables131,748 135,608 
Inventories6,164 8,482 
Prepaids and other current assets12,277 10,600 
Total current assets545,112 684,364 
Intangible assets, net57,634 58,420 
Goodwill279,793 278,810 
Property, plant and equipment, net54,965 56,035 
Operating lease right-of-use assets22,714 23,712 
Deferred tax assets3,986 4,047 
Unbilled receivables93,367 123,018 
Other assets3,304 4,240 
Total assets$1,060,875 $1,232,646 
LIABILITIES & STOCKHOLDERS’ EQUITY
  
Current liabilities:  
Accounts payable$15,540 $11,279 
Accrued salaries and benefits17,402 20,945 
Convertible notes73,860 163,687 
Deferred revenue20,624 24,755 
Income taxes payable21,015 20,607 
Operating lease liabilities5,854 5,992 
Other current liabilities14,107 20,002 
Total current liabilities168,402 267,267 
Long-term operating lease liabilities27,939 29,099 
Long-term income taxes payable16,681 21,424 
Deferred tax liabilities24,572 23,985 
Other long-term liabilities30,155 28,475 
Total liabilities267,749 370,250 
Commitments and contingencies (Notes 9, 11 and 15)
Stockholders’ equity:  
Convertible preferred stock, $.001 par value:  
Authorized: 5,000,000 shares; Issued and outstanding: no shares at March 31, 2022 and December 31, 2021
  
Common stock, $.001 par value:  
Authorized: 500,000,000 shares; Issued and outstanding: 110,235,608 shares at March 31, 2022 and 109,292,235 shares at December 31, 2021
110 109 
Additional paid-in capital1,272,353 1,298,966 
Accumulated deficit(475,024)(435,227)
Accumulated other comprehensive loss(4,313)(1,452)
Total stockholders’ equity793,126 862,396 
Total liabilities and stockholders’ equity$1,060,875 $1,232,646 
Refer to Notes to Unaudited Condensed Consolidated Financial Statements
6

RAMBUS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) 
Three Months Ended
 March 31,
(In thousands, except per share amounts)20222021
Revenue:  
Product revenue$47,969 $30,781 
Royalties30,464 28,859 
Contract and other revenue20,617 10,742 
Total revenue99,050 70,382 
Cost of revenue:  
Cost of product revenue18,397 11,410 
Cost of contract and other revenue624 1,556 
Amortization of acquired intangible assets3,378 4,386 
Total cost of revenue22,399 17,352 
Gross profit76,651 53,030 
Operating expenses:
Research and development39,815 32,354 
Sales, general and administrative26,906 23,562 
Amortization of acquired intangible assets409 229 
Restructuring charges 368 
Change in fair value of earn-out liability1,200  
Total operating expenses68,330 56,513 
Operating income (loss)8,321 (3,483)
Interest income and other income (expense), net1,360 2,981 
Loss on extinguishment of debt(66,497)— 
Loss on fair value adjustment of derivatives, net(8,283)— 
Interest expense (605)(2,614)
Interest and other income (expense), net(74,025)367 
Loss before income taxes(65,704)(3,116)
Provision for (benefit from) income taxes514 (503)
Net loss$(66,218)$(2,613)
Net loss per share:  
Basic$(0.60)$(0.02)
Diluted$(0.60)$(0.02)
Weighted-average shares used in per share calculation:  
Basic109,889 112,211 
Diluted109,889 112,211 
Refer to Notes to Unaudited Condensed Consolidated Financial Statements
7

RAMBUS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
Three Months Ended
 March 31,
(In thousands)20222021
Net loss$(66,218)$(2,613)
Other comprehensive loss:  
Foreign currency translation adjustment(293)(21)
Unrealized loss on marketable securities, net of tax(2,568)(31)
Total comprehensive loss$(69,079)$(2,665)
Refer to Notes to Unaudited Condensed Consolidated Financial Statements
8

RAMBUS INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)

For the Three Months Ended March 31, 2022
Common StockAdditional Paid-in CapitalAccumulated DeficitAccumulated Other Comprehensive Loss
(In thousands)SharesAmountTotal
Balances at December 31, 2021109,292 $109 $1,298,966 $(435,227)$(1,452)$862,396 
Net loss— — — (66,218)— (66,218)
Foreign currency translation adjustment— — — — (293)(293)
Unrealized loss on marketable securities, net of tax— — — — (2,568)(2,568)
Issuance of common stock upon exercise of options, equity stock and employee stock purchase plan943 1 (15,501)— — (15,500)
Stock-based compensation— — 7,778 — — 7,778 
Retirement of convertible senior note hedges— — 62,011 — — 62,011 
Retirement of warrants— — (46,356)— — (46,356)
Cumulative effect adjustment from adoption of ASU 2020-06— — (34,545)26,421 — (8,124)
Balances at March 31, 2022
110,235 $110 $1,272,353 $(475,024)$(4,313)$793,126 
For the Three Months Ended March 31, 2021
Common StockAdditional Paid-in CapitalAccumulated DeficitAccumulated Other Comprehensive Loss
(In thousands)SharesAmountTotal
Balances at December 31, 2020111,698 $112 $1,270,426 $(357,751)$(81)$912,706 
Net loss— — — (2,613)— (2,613)
Foreign currency translation adjustment— — — — (21)(21)
Unrealized loss on marketable securities, net of tax— — — — (31)(31)
Issuance of common stock upon exercise of options, equity stock and employee stock purchase plan807 1 (7,137)— — (7,136)
Stock-based compensation— — 6,501 — — 6,501 
Balances at March 31, 2021
112,505 $113 $1,269,790 $(360,364)$(133)$909,406 
Refer to Notes to Unaudited Condensed Consolidated Financial Statements
9

RAMBUS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) 
Three Months Ended
 March 31,
(In thousands)20222021
Cash flows from operating activities:  
Net loss$(66,218)$(2,613)
Adjustments to reconcile net loss to net cash provided by operating activities:  
Stock-based compensation7,778 6,501 
Depreciation7,040 6,198 
Amortization of intangible assets3,786 4,615 
Non-cash interest expense and amortization of convertible debt issuance costs105 1,874 
Loss on extinguishment of debt66,497  
Loss on fair value adjustment of derivatives, net8,283  
Deferred income taxes 648 416 
Loss on equity investment324 200 
Realized loss from sale of marketable securities688  
Gain on disposal of property, plant and equipment(6) 
Change in fair value of earn-out liability1,200  
Change in operating assets and liabilities:  
Accounts receivable(7,167)(8,034)
Unbilled receivables33,511 30,767 
Prepaids and other current assets(663)3,589 
Inventories2,318 4,540 
Accounts payable1,104 297 
Accrued salaries and benefits and other liabilities(6,853)(7,861)
Income taxes payable(4,311)(4,786)
Deferred revenue(4,152)3,223 
Operating lease liabilities(1,298)532 
Net cash provided by operating activities42,614 39,458 
Cash flows from investing activities:  
Purchases of property, plant, and equipment(1,683)(3,517)
Acquisition of intangible assets(3,000) 
Purchases of marketable securities(39,433)(159,755)
Maturities of marketable securities44,781 106,475 
Proceeds from sales of marketable securities204,091 8,332 
Net cash provided by (used in) investing activities204,756 (48,465)
Cash flows from financing activities:
Proceeds received from issuance of common stock under employee stock plans321 920 
Payments of taxes on restricted stock units(15,821)(8,057)
Payments under installment payment arrangements(3,220)(3,119)
Repurchase of convertible senior notes(174,454) 
Proceeds from retirement of convertible senior note hedges72,415  
Payments for retirement of warrants(55,148) 
Net cash used in financing activities(175,907)(10,256)
Effect of exchange rate changes on cash and cash equivalents(224)(144)
Net increase (decrease) in cash, cash equivalents and restricted cash71,239 (19,407)
Cash, cash equivalents and restricted cash at beginning of period108,264 129,324 
Cash, cash equivalents and restricted cash at end of period$179,503 $109,917 
Non-cash investing and financing activities:  
Property, plant and equipment received and accrued in accounts payable and other liabilities$14,238 $15,210 
Reconciliation of the cash, cash equivalents and restricted cash balances as of March 31, 2022 and December 31, 2021:
March 31,
2022
December 31,
2021
Cash and cash equivalents$179,129 $107,891 
Restricted cash374 373 
Cash, cash equivalents and restricted cash$179,503 $108,264 
Refer to Notes to Unaudited Condensed Consolidated Financial Statements
10

RAMBUS INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presentation
The accompanying unaudited condensed consolidated financial statements include the accounts of Rambus Inc. (“Rambus” or the “Company”) and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in the accompanying unaudited condensed consolidated financial statements.
In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments (consisting only of normal recurring items) necessary to state fairly the financial position and results of operations for each interim period presented. Interim results are not necessarily indicative of results for a full year.
The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information. Certain information and Note disclosures included in the financial statements prepared in accordance with generally accepted accounting principles have been omitted in these interim statements pursuant to such SEC rules and regulations. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and notes thereto in Form 10-K for the year ended December 31, 2021.

2. Recent Accounting Pronouncements
Recent Accounting Pronouncements Adopted
In August 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40) (“ASU 2020-06”).” The amendments in this ASU simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, the guidance removes the liability and equity separation models for convertible instruments. Instead, entities will account for convertible debt instruments wholly as debt unless convertible instruments contain features that require bifurcation as a derivative or that result in substantial premiums accounted for as paid-in capital. The guidance also requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. The guidance is effective for fiscal years beginning after December 15, 2021. The Company adopted this guidance on January 1, 2022 on a modified retrospective basis. Upon adoption, the Company reversed approximately $35.2 million of debt discount related to the Company’s 1.375% Convertible Senior Notes due 2023 (the “2023 Notes”) from additional paid-in capital, reversed approximately $8.3 million representing the unamortized debt discount from liabilities, and recorded the net impact of $26.9 million to accumulated deficit. The Company also removed approximately $0.7 million of debt issuance costs related to the 2023 Notes from additional paid-in capital and recorded approximately $0.5 million to accumulated deficit related to the amortization of debt issuance costs that were historically allocated to equity. The Company expects reported interest expense for its convertible notes to decrease in the future.
Recent Accounting Pronouncements Not Yet Adopted
In October 2021, the FASB issued ASU No. 2021-08, “Business Combinations (Topic 805)—Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” The amendments in this ASU improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistencies related to recognition of an acquired contract liability, and to payment terms and their effect on subsequent revenue recognized by the acquirer. Among other changes, this ASU requires that an acquirer account for acquired revenue contracts in accordance with Topic 606 as if it had originated the contracts. If the acquirer is unable to assess or rely on how the acquiree applied Topic 606, the acquirer should consider the terms of the acquired contracts as of the contract inception or contract modification date in applying Topic 606 to determine what should be recorded at the acquisition date. The amendments also provide certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. The guidance is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements.

11

3. Revenue Recognition
Contract Balances
The contract assets are primarily related to the Company’s fixed fee IP licensing arrangements and rights to consideration for performance obligations delivered but not billed as of March 31, 2022.
The Company’s contract balances were as follows:
As of
(In thousands)March 31, 2022December 31, 2021
Unbilled receivables$225,115 $258,626 
Deferred revenue22,045 26,198 
During the three months ended March 31, 2022, the Company recognized $11.7 million of revenue that was included in the contract balances as of December 31, 2021. During the three months ended March 31, 2021, the Company recognized $4.6 million of revenue that was included in the contract balances as of December 31, 2020.
Remaining Performance Obligations
Revenue allocated to remaining performance obligations represents the transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted but unsatisfied performance obligations were approximately $27.0 million as of March 31, 2022, which the Company primarily expects to recognize over the next 2 years.

4. Earnings (Loss) Per Share
Basic earnings (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the earnings by the weighted-average number of common shares and potentially dilutive securities outstanding during the period. Potentially dilutive common shares consist of incremental common shares issuable upon exercise of stock options, employee stock purchases, restricted stock and restricted stock units and shares issuable upon the conversion of convertible notes. The dilutive effect of outstanding shares is reflected in diluted earnings per share by application of the treasury stock method. This method includes consideration of the amounts to be paid by the employees and the amount of unrecognized stock-based compensation related to future services. No potential dilutive common shares are included in the computation of any diluted per share amount when a net loss is reported.
The following table sets forth the computation of basic and diluted net loss per share:
Three Months Ended
 March 31,
(In thousands, except per share amounts)20222021
Net loss per share:
Numerator:  
Net loss$(66,218)$(2,613)
Denominator:
Weighted-average shares outstanding - basic109,889112,211
Effect of potential dilutive common shares  
Weighted-average shares outstanding - diluted109,889112,211
Basic net loss per share$(0.60)$(0.02)
Diluted net loss per share$(0.60)$(0.02)
For both the three months ended March 31, 2022 and 2021, an additional 3.4 million, respectively, were excluded from the weighted-average dilutive shares because there was a net loss position for the periods. During the three months ended March 31, 2022, the Company’s stock price exceeded the 2023 Notes' conversion price of $18.93 per share, therefore approximately 0.8 million shares for the three months ended March 31, 2022, respectively, were included in the weighted-average dilutive shares.
As a result of the Company’s adoption of ASU No. 2020-06 on January 1, 2022, the dilutive impact of the 2023 Notes on the calculation of diluted net income (loss) per share is considered using the if-converted method. Furthermore, because the
12

principal amount of the 2023 Notes must be settled in cash, the dilutive impact of applying the if-converted method is limited to the in-the-money portion, if any, of the 2023 Notes. For periods prior to the Company’s January 1, 2022 adoption of ASU No. 2020-06, the Company applied the treasury stock method to account for the dilutive impact of the 2023 Notes for diluted net income (loss) per share purposes. Under the if-converted method, the cumulative dilutive effect of the 2023 Notes would be approximately 2.6 million shares. Refer to Note 10, “Convertible Notes,” for additional information.

5. Intangible Assets and Goodwill
Goodwill
The following tables present goodwill information for the three months ended March 31, 2022:
(In thousands)As of December 31, 2021
Adjustment to Goodwill (1)
As of March 31, 2022
Total goodwill$278,810 $983 $279,793 
_________________________________________
(1)    During the three months ended March 31, 2022, the Company corrected an immaterial error related to an understatement in other current liabilities that originated from the acquisition of AnalogX in 2021.
As of March 31, 2022
(In thousands)Gross Carrying AmountAccumulated Impairment LossesNet Carrying Amount
Total goodwill$301,563 $(21,770)$279,793 
Intangible Assets, Net
The components of the Company’s intangible assets as of March 31, 2022 and December 31, 2021 were as follows:
  As of March 31, 2022
(In thousands)Useful Life
Gross Carrying
 Amount (1)
Accumulated
 Amortization (1)
Net Carrying
 Amount
Existing technology3 to 10 years$295,058 $(250,892)$44,166 
Customer contracts and contractual relationships0.5 to 10 years37,793 (35,525)2,268 
Non-compete agreements and trademarks3 years300 (300) 
In-process research and developmentNot applicable11,200 — 11,200 
Total intangible assets $344,351 $(286,717)$57,634 
_________________________________________
(1)    During the three months ended March 31, 2022, the Company acquired certain intangible assets for $3.0 million in cash. The assets were classified as existing technology and are being amortized over their expected useful life of five years. During the three months ended March 31, 2022, the amortization for the acquired assets was not material.

  As of December 31, 2021
(In thousands)Useful Life
Gross Carrying
 Amount
Accumulated
 Amortization
Net Carrying
 Amount
Existing technology3 to 10 years$292,058 $(247,422)$44,636 
Customer contracts and contractual relationships0.5 to 10 years37,793 (35,209)2,584 
Non-compete agreements and trademarks3 years300 (300) 
In-process research and development (“IPR&D”)Not applicable11,200 — 11,200 
Total intangible assets $341,351 $(282,931)$58,420 
13


Amortization expense for intangible assets for the three months ended March 31, 2022 and 2021 was $3.8 million and $4.6 million, respectively.
The estimated future amortization of intangible assets as of March 31, 2022 was as follows (in thousands):
Years Ending December 31:Amount
2022 (remaining nine months)$11,221 
202314,091 
202411,780 
20255,780 
20263,462 
Thereafter100 
Total amortizable purchased intangible assets46,434 
IPR&D11,200 
Total intangible assets$57,634 

6. Segments and Major Customers
Operating segments are based upon Rambus’ internal organization structure, the manner in which its operations are managed, the criteria used by its Chief Operating Decision Maker (“CODM”) to evaluate segment performance and availability of separate financial information regularly reviewed for resource allocation and performance assessment.
The Company has determined its CODM to be the Chief Executive Officer (“CEO”). The CEO reviews financial information presented on a consolidated basis for purposes of managing the business, allocating resources, making operating decisions and assessing financial performance. On this basis, the Company is organized and operates as a single segment within the semiconductor space. As of March 31, 2022, the Company has a single operating and reportable segment.
Accounts receivable from the Company’s major customers representing 10% or more of total accounts receivable at March 31, 2022 and December 31, 2021, respectively, was as follows:
As of
Customer March 31, 2022December 31, 2021
Customer 118 %*
Customer 217 %17 %
Customer 3 14 %19 %
_________________________________________
*    Customer accounted for less than 10% of total accounts receivable in the period.
Revenue from the Company’s major customers representing 10% or more of total revenue for the three months ended March 31, 2022 and 2021, respectively, was as follows:
Three Months Ended
 March 31,
Customer 20222021
Customer A25 %23 %
Customer B14 %*
Customer C*14 %
_________________________________________
*    Customer accounted for less than 10% of total revenue in the period.
14

Revenue from customers in the geographic regions based on the location of contracting parties was as follows:
Three Months Ended
 March 31,
(In thousands)20222021
USA$55,684 $46,151 
Asia-Other17,792 3,574 
Singapore14,045 6,338 
Taiwan4,960 8,843 
Japan3,535 4,588 
Europe1,564 446 
South Korea1,465 388 
Canada5 54 
Total$99,050 $70,382 

7. Marketable Securities
Rambus invests its excess cash and cash equivalents primarily in U.S. government-sponsored obligations, commercial paper, corporate notes and bonds, money market funds and municipal notes and bonds that mature within three years.
All cash equivalents and marketable securities are classified as available-for-sale. Total cash, cash equivalents and marketable securities are summarized as follows:
 As of March 31, 2022
(In thousands, except percentages)Fair Value
Amortized
 Cost
Gross
 Unrealized
 Gains
Gross
 Unrealized
 Losses
Weighted
 Rate of
 Return
Money market funds$6,058 $6,058 $ $ 0.21 %
U.S. Government bonds and notes63,023 64,547  (1,524)0.37 %
Corporate notes, bonds and commercial paper111,314 113,421  (2,107)0.33 %
Total cash equivalents and marketable securities180,395 184,026  (3,631) 
Cash163,296 163,296 — —  
Total cash, cash equivalents and marketable securities$343,691 $347,322 $ $(3,631) 
 As of December 31, 2021
(In thousands, except percentages)Fair Value
Amortized
 Cost
Gross
 Unrealized
 Gains
Gross
 Unrealized
 Losses
Weighted
 Rate of
 Return
Money market funds$7,402 $7,402 $ $ 0.02 %
U.S. Government bonds and notes102,812 103,113  (301)0.29 %
Corporate notes, bonds and commercial paper287,905 288,667 8 (770)0.22 %
Total cash equivalents and marketable securities398,119 399,182 8 (1,071) 
Cash87,490 87,490 — —  
Total cash, cash equivalents and marketable securities$485,609 $486,672 $8 $(1,071) 
Available-for-sale securities are reported at fair value on the balance sheets and classified along with cash as follows:
As of
(In thousands)March 31, 2022December 31, 2021
Cash equivalents$15,833 $20,401 
Short-term marketable securities164,562 377,718 
Total cash equivalents and marketable securities180,395 398,119 
Cash163,296 87,490 
Total cash, cash equivalents and marketable securities$343,691 $485,609 
15

The Company continues to invest in highly rated and highly liquid debt securities. The Company holds all of its marketable securities as available-for-sale, marks them to market, and regularly reviews its portfolio to ensure adherence to its investment policy and to monitor individual investments for risk analysis, proper valuation, and unrealized losses that may be other than temporary.
The estimated fair value and gross unrealized losses of cash equivalents and marketable securities classified by the length of time that the securities have been in a continuous unrealized loss position at March 31, 2022 and December 31, 2021 are as follows:
 Fair ValueGross Unrealized Losses
(In thousands)March 31, 2022December 31, 2021March 31, 2022December 31, 2021
Less than 12 months    
U.S. Government bonds and notes$63,023 $82,822 $(1,524)$(301)
Corporate notes, bonds and commercial paper104,432 255,783 (2,068)(770)
Total cash equivalents and marketable securities in a continuous unrealized loss position for less than 12 months167,455 338,605 (3,592)(1,071)
12 months or greater
Corporate notes, bonds and commercial paper1,878  (39) 
Total cash equivalents and marketable securities in a continuous unrealized loss position for 12 months or greater1,878  (39) 
Total cash equivalents and marketable securities in a continuous unrealized loss position$169,333 $338,605 $(3,631)$(1,071)
The gross unrealized losses at March 31, 2022 and December 31, 2021 were not material in relation to the Company’s total available-for-sale portfolio. The gross unrealized losses can be primarily attributed to a combination of market conditions as well as the demand for and duration of the U.S. government-sponsored obligations and corporate notes and bonds. The Company reasonably believes that there is no need to sell these investments and that it can recover the amortized cost of these investments. The Company has found no evidence of impairment due to credit losses in its portfolio. Therefore, these unrealized losses were recorded in other comprehensive income (loss). However, the Company cannot provide any assurance that its portfolio of cash, cash equivalents and marketable securities will not be impacted by adverse conditions in the financial markets, which may require the Company in the future to record an impairment charge for credit losses which could adversely impact its financial results.
The contractual maturities of cash equivalents (excluding money market funds which have no maturity) and marketable securities are summarized as follows:
(In thousands)March 31, 2022
Due less than one year$65,210 
Due from one year through three years109,127 
Total$174,337 
Refer to Note 8, “Fair Value of Financial Instruments,” for discussion regarding the fair value of the Company’s cash equivalents and marketable securities.

16

8. Fair Value of Financial Instruments
The following table presents the financial instruments that are carried at fair value and summarizes the valuation of its cash equivalents and marketable securities by the below pricing levels as of March 31, 2022 and December 31, 2021:
 As of March 31, 2022
(In thousands)Total
Quoted Market Prices in Active Markets
 (Level 1)
Significant Other Observable Inputs
 (Level 2)
Significant Unobservable Inputs
 (Level 3)
Money market funds$6,058 $