Rambus, Inc.

Welcome to the Rambus fourth quarter and fiscal year 2020 earnings conference call. At this time, all participants are in a listen-only mode. As a conclusion of our prepared remarks, we will conduct question and answer session. If you would like to ask a question, you may press star one on your touchstone pad at any time. If anyone should require assistance during the conference, please press star zero on your touchstone pad at any time. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Rahul Mathur, Chief Financial Officer. You may begin your conference.

Thank you, Operator, and welcome to the RAMBUS Fourth Quarter 2020 Results Conference Call. I'm Rahul Mathur, CFO, and on the call with me today is Luke Serafin, our CEO. The press release for the results that we will be discussing today have been furnished to the SEC on Form 8-K. A replay of this call will be available for the next week at 855-859-2056. You can hear the replay by dialing the toll-free number and then entering ID number 374-4169 when you hear the prompt. In addition, we are simultaneously webcasting this call, and along with the audio, we're webcasting slides that we will reference during portions of today's call. So even if you're joining us via conference call, you may want to access the webcast with the slide presentation. A replay of this call can be accessed on our website beginning today at 5 p.m. Pacific time. Our discussion today will contain forward-looking statements, including our financial guidance for future periods, product and investment strategies, timing of expected product launches, demand for existing and newly acquired technologies, the growth opportunities of the various markets we serve, the expected benefits of our merger, acquisition, and divestiture activity, including the success of our integration efforts, risks and the potential adverse impacts related to or arising from the novel coronavirus or COVID-19, and the effects of ASB 606 and reported revenue, amongst other things. These statements are subject to risks and uncertainties that are discussed during this call. and may be more fully described in the documents we file with the SEC, including our 8Ks, 10Qs, and 10Ks. These forward-looking statements may differ materially from our actual results, and we're under no obligation to update these statements. In an effort to provide greater clarity in the financials, we're using both GAAP and non-GAAP financial presentations in both our press release and also on this call. A reconciliation of these non-GAAP financials to the most directly comparable GAAP measures has been included in our press release, in our slide presentation, and on our website at rambits.com on the Investor Relations page under Financial Releases. We've adopted ASC 606 in 2018 using the modified retrospective method, which did not restate prior periods, but rather ran the cumulative effect of the adoption through retained earnings at the beginning balance sheet adjustment. Any comparison between our results under AAC 606 and prior results under AAC 605 is not an accurate way to track our company's progress. We'll continue to provide operational metrics such as licensing billings to give our investors better insight into our operational performance. The order of our call today will be as follows. Luke will start with an overview of the business. I will discuss our financial results, including our guidance for future periods, and then we will end with Q&A. I'll now turn the call over to Luke to provide an overview of the quarter.

Luke? Thanks, Rahul, and good afternoon, everyone. 2020 was a very successful year for the company. The ongoing shift to the cloud, along with the widespread advancement of artificial intelligence across data center, 5G, automotive, and IoT, has led to an exponential growth in data usage and increasing demands on the data infrastructure. Creating fast and safe connections, both in and across systems, remains one of the most mission-critical design challenges limiting performance in advanced hardware for these markets. As a provider of industry-leading chips and IP that enable critical performance improvements for data center and cloud, Randos is ideally suited to address these challenges. With that, It is no surprise that the cloud continues to be the primary demand driver across all of our businesses. We see sustained investments from our customers in products and solutions that will help improve the performance and security of the global data infrastructure and expect this demand to continue to grow. We had a strong finish to the year, demonstrating great execution across our business lines. In Q4, we delivered on revenues of $61.9 million, in line with expectations, and we exceeded our profitability targets. This brought the full year in ahead of 2020 guidance for revenue and earnings. Annual cash generation was up 44%, with $185.5 million from operating activities. With tremendous cash generation fueling ongoing investment in our product roadmap, we are poised to continue profitable growth in 2021 and beyond. Turning now to the businesses, this was another year of record growth for memory interface chips. Annual product revenue was up 56% year over year, finishing well above the guidance provided at our Annals Day in 2019. This increase was driven by steady gains in DDR4 market share, allowing us to significantly outpace the growth in the overall market. As we mentioned previously, there was a short-term inventory correction in the third and fourth quarter following the build-up in the first half. We believe the bulk of this adjustment has been completed as consumption levels have begun returning to normal. This year, we expect our growth to continue with further gains in market share. For DDR5, we are in the leading position for qualification with our memory customers and CPU partners. We are shipping early volumes with all of the major DRAM suppliers sampling DDR5 modules without chips to data center and cloud customers. Looking forward, we continue to invest in the development of companion chips for DDR5 platforms to expand the value of our portfolio. Additionally, we are the forefront of innovation for new architectures and memory subsystems and are actively being sought by ecosystem leaders as a development partner. In our Silicon IP business, we continue to drive roadmap alignment with overall market trends and deliver best-in-class solutions for demanding cloud and edge applications. 2020 was a strong year with annual revenue up 14%, and continued design with momentum in Data Center, 5G, and Edge. This performance was supported by the successful integration of the former Northwest Logic and VeriMetric teams acquired in 2019, with both ending the year on their targeted run rates for revenue. Lastly, we signed multiple new patent license agreements and renewals with DRAM and SOC manufacturers throughout the year, In addition to the D-LAN license agreements with CXMT and Micron discussed in previous quarters, we also renewed our agreement with AMD for an additional five years. Supported by our growing patent portfolio, these agreements are a great testament to the ongoing strength and relevance of our program. With these licensing agreements secure, we have solidified a foundation of sustained cash generation that allows us to fuel our product roadmap and invest in inorganic growth. Looking forward, the insatiable demands of performance-hungry applications in the data center and other growing markets drive our research and development. We continue to produce products and innovations that are critical to the memory industry and address the fundamental challenges of accelerating data. As we begin 2021, I am very pleased with the steady progress the team has made over the last few years. We have strategically focused the business and continuously improved our operating performance. It has allowed us to better serve our customers and return capital to our shareholders. In closing, I am proud of the company's performance and excited by the growing opportunities ahead of us. With that, I turn the call over to Rahul to discuss the quarterly financial results. Rahul?