Rambus, Inc.

Welcome to the Rambis fourth quarter and fiscal year 2021 earnings conference call. At this time, all participants are in a listen only mode. At the conclusion of our prepared remarks, we will conduct question and answer session. If you would like to ask a question, you may press R1 on your touchstone pad at any time. If anyone should require assistance during the conference, please press R0 on your touchstone pad at any time. As a reminder, This conference call is being recorded. I would like to turn the conference over to Des Lynch, Vice President of Finance and Investor Relations. He may begin your conference.

Thank you, Operator, and welcome to the Rambis fourth quarter and full year 2021 results conference call. I am Desmond Lynch, VP of Finance and Investor Relations, and on the call with me today is Luke Serafin, our CEO, and Keith Jones, our interim CFO. The press release for the results that we will be discussing today has been filed with the SEC on Form 8K. 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. In addition, we are simultaneously webcasting this call and along with the audio, we are 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 expectations regarding business opportunities, industry growth rates, 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, the company's ability to deliver long-term profitable growth, the long-term sustainability of the company's increased product revenue and cash generated from operating activities, the company's outlook and financial guidance for the first quarter of 2022 and related drivers, the company's ability to effectively manage supply chain shortages, risks and potential adverse impacts related to or arising from COVID-19 and its variants, and the effects of ASC 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 are under no obligation to update these statements. In an effort to provide greater clarity in the financials, we are using both GAAP and non-GAAP financial presentations in both our press release and 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 rambus.com on the investor relations page under financial releases. We 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 a beginning balance sheet adjustment. Any comparison between our results under ASC 606 and prior results under ASC 605 is not an accurate way to track the company's progress. We will continue to provide operational metrics such as licence 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, Keith will discuss our financial results, 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?

Thank you, Des, and good afternoon, everyone. 2021 was a great year for Rambus, driven by its strong execution by our global teams and continued product growth. We delivered an excellent fourth quarter with $91.8 million in revenue, exceeding revenue and profitability targets for the quarter. It was also an outstanding quarter for cash generation. We set a 10-year high with $72 million in cash flow operations in Q4 and a new annual record at $209 million for the full year. Our ability to generate strong cash flow operations allows us to both continue to invest in new products and to return value to stockholders. As we continue to scale the business, we benefit from a balanced and diverse portfolio of offerings and revenue contributions across chips, silicon IP, and patent licensing. Memory interface chips contributed to record product revenues for the second consecutive quarter at $45 million, which is up 23% of the last quarter's records. These brought the full year revenue to an annual record of roughly $144 million, growing the chip business by 26% over 2020. We achieved key milestones throughout the year that draws the product business performance. We continue to focus on execution with our first generation DDR5 RCD. This product is in volume production and has a growing qualification footprint in next generation systems. As we mentioned last quarter, we were also the first to sample a second generation DDR5 RCD. We are sampling our second-generation products to customers and have begun receiving pre-production orders for the second half of the year. Being first to market on DDR5 has given us an edge to gain share during the DDR5 transition cycle. We had a strong year. However, it is important to acknowledge the continued industry-wide challenges in semiconductor supply chains. We are working closely and proactively with our supply chain partners to minimize the impact of any disruptions and focus on our ability to meet the growing demand for our products. Despite these supply chain challenges, we delivered record results and expect the business to continue to grow in 2022. In addition to the record financial performance, the team continues available markets with the ongoing development of new DDR5 companionships and CXL interconnect solutions. Let's turn now to Silicon IP. Through a combination of disciplined execution and strategic investments to scale the business, we have grown to a run rate of over $100 million a year in bookings, and it continues to grow. We are leading in our chosen focus areas, including HBM, CXL, PCI Express, and Security IP, and see a growing number of design wins across our target markets. Our silicon IP business contributes to the company's balanced revenue streams, diversity in the customer base, and broad relevance in the ecosystem. It also gives us the ability to leverage the solutions developed for the data center and the edge to address additional markets like automotive IoT and government. In closing, this was an exceptional year for the company. We increased our investment in ESG and ensuring that we're working with environmentally conscious companies that share our values and commitments to the health and welfare of employees and the community. We successfully closed key patent licensing agreements, solidifying our foundation of sustained cash generation and continued investment. We returned $100 million to our stockholders through an accelerated share repurchase program. We acquired and integrated two Silicon IT companies, augmenting our world-class design team and product portfolio. We expanded our roadmap for next-generation data center solutions with the launch of the CXL initiative and the development of DDR5 companionships, helping to double our time in the years to come. And finally, we extended our technology leadership with key product releases and performance milestones, including the production ramp of our DDR5 RCD, extending our market share. I'm very proud of what the Rambus team has achieved. We said we would deliver profitable growth, and we did. With the expansion of our product roadmaps into new chips, the industry's transition to new memory and interface technologies, and the growing demand for state-of-the-art security technologies across a wide range of markets and applications, we are very excited about the prospects of 2022 and beyond. With that, I turn the call over to Keith to discuss the quarterly financial results.