Rambus, Inc.

Good afternoon. Thank you for attending the RAMBIS second quarter 2022 earnings call. My name is Matt, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 on your telephone keypad. I would now like to pass the conference over to our host, Desmond Lynch, Chief Financial Officer of RAMBIS. Desmond, please go ahead.

Thank you, Operator, and welcome to the RAMBIS second quarter 2022 results conference call. I am Desmond Lynch, Chief Financial Officer at RAMBIS, and on the call with me today is Luke Saracen, our CEO. 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 866 813-9403. You can hear the replay by dialing the toll-free number and then entering ID number 092-440 when you hear the prompt. 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 5pm Pacific time. Our discussions 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 third quarter of 2022 and related drivers, the company's ability to effectively manage supply chain shortages, risks and the potential adverse impacts related to or arising from COVID-19 and its variants and the effects of ASC 606 on 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 actual 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 licensing billings to give our investors better insights 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. 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, Dev, and congratulations on your newly announced role at CFO. I know many on the call already know you, but I'd like to take a moment to introduce you before we dive into our results. Dev brings over 20 years of finance experience to the table, including leadership roles at major players like Renesas, IDT, Atmel, and National Semiconductor. His deep understanding of Rambus and demonstrated success at the company make him an ideal choice for CFO. I'm very pleased to have him in his expanded role on the senior management team and will now turn to our results for the quarter. The company delivered a strong performance in Q2, with revenue and earnings at the high end of guidance, and generated $56.5 million in cash from operations. In Q3, we expect strong demand in the data center to drive our results, even as the industry continues to be supply constrained. We are addressing the needs of the data center with our diverse portfolio of chips, silicon IP, and patents, each of which is contributing at scale and fueling the company's long-term profitable growth. Memory interface chips delivered another record performance, driving $53.3 million in product revenue, even in the face of a very challenging industry-wide supply chain environment. The situation remains dynamic, and the team continues to work very closely and proactively with our supply chain partners to help minimize the impact to our customers. As a leader in DDR5 memory interface chips, Ramverse has a great opportunity for growth and some expansion as the industry transitions to DDR5. Our DDR5 RCD is in volume production with a growing qualification footprint. And just a few weeks ago, we expanded our DDR5 chipset offering with the introduction of our new companion chips, the SPD Hub and temperature sensor. These chips, along with the RCD, are integrated into server memory modules, and the SPD Hub is also used in PC memory modules. We are sampling to customers now and expect initial production shipments of the companion ships late this year with a ramp in 2023. This is a very exciting milestone for the company. But as we've discussed before, DDR5 is still in the early stages of its product lifecycle and is dependent on the rollout of new computing platforms. As our customers continue to build ahead of next generation server volume shipments, we expect the demand ramp for DDR5 to be somewhat lumpy in nature. With that, our memory interface chip product mix may shift as we march toward the projected DDR4, DDR5 crossover. In addition, as we look to the longer term evolution of the data center, we are seeing strong engagement across the entire ecosystem and getting great feedback on the needs of the market for CXL memory expansion and pooling solutions. We are working closely with key players, including leading cloud service providers and major DRAM vendors on next generation platforms addressed by our CXL initiative. We also amplified our world-class product team with the addition of hardened and further strengthened the development of CXL-based data center solutions. Turning now to Silicon IP, we delivered another strong performance highlighted by key design wins and continued momentum across multiple markets. Data center and AI are driving robust demand for our high-performance Silicon IP solutions. And we are seeing growth in edge government, and automotive. Rambus continues to demonstrate leadership in our areas of focus with major five controller and security IP wins. In closing, this was another strong quarter for the company, with the team continuing to execute on our long-term strategy and deliver considerable growth from our key programs. We achieved revenue and earnings at the high end of guidance, We delivered another record quarter of product revenue driven by memory interface chips and expanded our SAM with the addition of the DDR5 companion chips. Silicon IP remains on track for a record year with sustained momentum in the data center and strong inroads into adjacent markets. And finally, we have a solid foundation from licensing as part of a balanced and diverse portfolio of offerings with multiple revenue streams. We continue to invest in critical programs that keep us at the forefront of advanced data center architectures, and our unique combination of products and expertise will fuel sustained growth in 2022 and beyond. Before I turn the call back over to Des, I'd like to take a moment to thank Keith for his contributions during this interim period. He has done a very good job working closely with both me and Des to bring the company through a successful transition, and we remain very well positioned for the future. With that, I turn the call over to Dave to discuss the quarterly financial results.