Rambus, Inc.

Welcome to the Rambus Third Quarter and Fiscal Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of our prepared remarks, we will conduct a question and answer session. If you would like to ask a question, you may press star 1 on your touchtone pad at any time. If anyone should require assistance during the conference, please press star 0 on your touchtone pad at any time. As a reminder, this conference call is being recorded. I would now like to pass the conference over to Desmond Lynch, Chief Financial Officer. You may begin, sir.

Thank you, operator, and welcome to the Rambus third quarter 2022 results conference call. I am Desmond Lynch, Chief Financial Officer at Rambus, and on the call with me today is Luke Serafin, 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 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. A replay of this call can be accessed on our website beginning today at 5 p.m. Pacific time. Our discussions today will contain forward-looking statements, including our expectations regarding projected financial results financial prospects, market growth, demand for our solutions, the company's ability to effectively manage any supply chain shortages, and the effects of ASC 606 on reported revenue, amongst other items. These statements are subject to risks and uncertainties that may be discussed during this call and are more fully described in the documents we file with the SEC, including our 8Ks, 10 Qs and 10 Ks. 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 a modified retrospective method, which did not restate prior periods, but rather ran the cumulative effect of the adoption through retained earnings as 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 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. 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. The company delivered an excellent performance in Q3. We exceeded our guidance for both revenue and earnings and delivered a record $80 million in cash flow operations. These strong results were achieved in the context of a challenging macroeconomic environment. Our strategic focus in data center, strength of execution, and diverse portfolio of offerings are driving the continued profitable growth of the company and give us confidence in our outlook for a strong Q4. In addition, we are able to consistently return value to our stockholders, most recently with the initiation of a $100 million accelerated share repurchase program and further debt retirements. And just this morning, we announced that we have extended our comprehensive patent license agreement with Samsung for an additional 10 years. With this extension, we have solidified a sustained foundation of cash generation from our licensing program that allows us to continue to return value to our stockholders and build our growing product businesses. Samsung has been a trusted partner for many years. and we are very pleased to strengthen our strategic relationship. This extension enables deeper collaboration on products and is a testament to the continued value of our innovations for the ongoing advancement of the industry. Turning to our detailed results, memory interface chips drove another record quarter of product revenue at $58.6 million, up 10% sequentially, and 60% year-over-year. This was a great performance from the team, but we remain vigilant as we navigate through dynamic macroeconomic conditions. We continue to focus on execution and are actively managing through a rapidly evolving supply-demand environment. Visibility is improving in the supply chain, and we expect continued growth in Q4. Demand for our DDR4 RCD remains strong, and DDR5 continues to ship as our customers prepare for the ramp of the next generation computing platforms. We are in the midst of simultaneous platform and DRAM transitions, and as such, we continue to 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 server memory crossover, which we now project to be in the first half of 24. In addition, as we mentioned in last quarter's call, we expanded our chipset offering with the introduction of our new DDR5 SPD hub and temperature sensor. These companion chips, along with the RCD are integrated into server memory modules. We expect production of these parts to ramp in 23 in line with market demand. As we look to the longer term evolution of the data center, industry momentum around CXL is accelerating. Multiple applications for CXL attached memory are emerging, enabling new tiers in the memory architecture. CXL-enabled architectures promise to deliver higher performance and improve total cost of ownership in server generations to come. We continue to work in close collaboration with the ecosystem to develop CXL solutions for memory expansion and pooling. We're seeing strong engagement from cloud, OEM, and DRAM makers alike and are well aligned with the market needs and timing. Turning now to Silicon IP, we delivered another strong performance with sustained momentum across multiple markets. We remain on track to deliver $120 to $130 million in revenue and over 20% growth year over year. Data center and AI are driving robust demand for our high-performance Silicon IP solutions, and we have growing traction in 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 an excellent quarter for the company. We delivered results above guidance and expect an even stronger Q4. We are confident in the long-term growth of the company, but remain vigilant given the challenging macro environments. We are continuing to invest in the right programs for the data center market to drive continued growth. And we are leveraging our strong balance sheet to return value to our stockholders. I am extremely proud of the team, and I want to thank our customers and partners for their ongoing support. With that, I turn the call over to Dev to discuss the quarterly financial results. Dev?