XML 48 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Business Segments and Major Customers
 3 Months Ended
Mar. 31, 2012
Business Segments and Major Customers  
Business Segments and Major Customers

11.     Business Segments and Major Customers

 

For the three months ended March 31, 2012, only SBG was considered a reportable segment as it met the quantitative thresholds for disclosure as a reportable segment. The results of the remaining immaterial operating segments were combined and shown under “All Other.”

 

The Company evaluates the performance of its segments based on segment direct operating income (loss). Segment direct operating income (loss) does not include the allocation of any corporate support functions (including human resources, facilities, legal, finance, information technology, corporate development, general administration, corporate licensing and marketing expenses, advanced technology development, and cost of restatement) to the segments. Additionally, certain expenses are not allocated to the operating segments because they are managed at the corporate level and they are not considered in evaluating the segments’ operating performance. Such unallocated corporate level expenses include stock-based compensation expenses, depreciation and amortization expenses, and certain bonus and acquisition expenses. The “Reconciling Items” category includes these unallocated corporate support function expenses as well as corporate level expenses. The presentation of the three months ended March 31, 2011 segment data has been updated accordingly to conform with the 2012 segment direct operating income (loss) definition.

 

The table below presents reported segment revenues and reported segment direct operating income (loss).

 

 

 

For the Three Months Ended March 31, 2012

 

 

 

SBG

 

All Other

 

Total

 

 

 

(In thousands)

 

Revenues

 

$

57,088

 

$

5,775

 

$

62,863

 

 

 

 

 

 

 

 

 

Segment direct operating income (loss)

 

$

43,604

 

$

(3,307

)

$

40,297

 

Reconciling items

 

 

 

 

 

(57,855

)

Total operating loss

 

 

 

 

 

$

(17,558

)

Interest and other expense, net

 

 

 

 

 

(6,482

)

Loss before income taxes

 

 

 

 

 

$

(24,040

)

 

 

 

For the Three Months Ended March 31, 2011

 

 

 

SBG

 

All Other

 

Total

 

 

 

(In thousands)

 

Revenues

 

$

62,376

 

$

151

 

$

62,527

 

 

 

 

 

 

 

 

 

Gain from settlement

 

$

6,200

 

$

—

 

$

6,200

 

 

 

 

 

 

 

 

 

Segment direct operating income (loss)

 

$

56,442

 

$

(3,594

)

$

52,848

 

Reconciling items

 

 

 

 

 

(44,478

)

Total operating income

 

 

 

 

 

$

8,370

 

Interest and other expense, net

 

 

 

 

 

(5,824

)

Income before income taxes

 

 

 

 

 

$

2,546

 

 

The Company’s chief operating decision authority resides with the senior executive management team, which does not review information regarding assets on an operating segment basis. Additionally, the Company does not record intersegment revenue or expense.

 

Customers A, C and E accounted for 37%, 13% and 10%, respectively, of revenue in the three months ended March 31, 2012. Customers A, B, C and D accounted for 31%, 14%, 11% and 11%, respectively, of revenue in the three months ended March 31, 2011.

 

Rambus licenses its technologies and patents to customers in multiple geographic regions. Revenue from customers in the following geographic regions was recognized as follows:

 

 

 

Three Months Ended
March 31,

 

 

 

2012

 

2011

 

 

 

(In thousands)

 

South Korea

 

$

23,247

 

$

19,144

 

Japan

 

17,569

 

29,601

 

USA

 

16,189

 

13,499

 

Canada

 

1,979

 

128

 

Asia-Other

 

2,750

 

148

 

Europe

 

1,129

 

7

 

Total

 

$

62,863

 

$

62,527