Rambus, Inc.

Welcome to the RAMBUS fourth quarter and fiscal year 22 earnings conference call. At this time, all participants are in listening 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 one on your touchtone pad at any time. If anyone should require assistance during the conference, please press the star zero on your touchtone pad at any time. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Desmond Lynch, Chief Financial Officer. You may begin your conference.

Thank you, Operator, and welcome to the RAMBIS fourth 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 866-813-9403. 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, 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 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 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 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, Des, and good afternoon, everyone. 2022 was an excellent year for the company, capped off by a solid performance in the fourth quarter with Q4 revenue and earnings in line with guidance. Through outstanding execution, we were able to grow the business faster than the market despite a challenging macroeconomic environment. We delivered another record year of product revenue, driven by memory interface chips, hit our annual revenue target for silicon IP, and extended our strategic relationship with Samsung, which strengthens our long-term licensing foundation. In addition, we generated a record $230 million in cash from operations over the course of the year. As we have grown the business, we have strengthened our balance sheet and consistently returned value to stockholders who share repurchases, strategic investments, and debt retirement. We continue our focused investments in the technology and talents critical to our growth initiatives. As we take a look at the details of our performance, memory interface chips led the way, delivering Q4 product revenue of $67 million, up 15% quarter-over-quarter. This brought the full year to $227 million, setting a new annual record for product revenue and significantly outpacing the market with 58% growth year-over-year. These results were driven by strong execution throughout 2022, with the team expanding our DDR4 qualification footprint and making significant market share gains. We are well positioned for the ramp of DDR5 with our industry-leading offering and continue our product leadership with last week's announcement of our Gen3 DDR5 RCD. This latest generation chip extends the performance of our RCD family to 6,400 megatransfers per second and supports the roadmap of future server generations in the years to come. Turning to 2023, We remain vigilant as we navigate through the dynamics of the industry transition to a new generation of memory. While we now have improved visibility of supply, we are seeing elevated inventory levels at some end customers. This is leading to softness in the first half that is reflected in our guidance, but we expect a stronger second half of the year with next generation memory ramping in earnest. The industry is still early in the transition to DDR5, with a server memory crossover from DDR4 projected for the first half of 2024, which is consistent with our view from last quarter. And with that, our memory interface G product mix will continue to be dynamic as the industry prepares for production shipments of DDR5. We are actively working with our customers to manage inventory adjustments and the transition to DDR5, and we believe we are well positioned for continued growth in 2023. As we look to the longer-term evolution of the data center, CXL brings many exciting opportunities. Multiple applications for CXL-attached memory are emerging, enabling new memory tiers in the data center. 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, including cloud OEM and DRAM makers, and are well aligned with the market needs and timing. Finally, in Silicon IP, the team executed very well, achieving over 30% revenue growth year over year. We continue to lead in our areas of focus for both interface and security IP. And while we expect challenging macro conditions, we remain confident in the long-term growth opportunities. We demonstrated strength with tier one wins throughout the year and are well positioned to address the long-term need for high performance and highly secure IP in advanced SOCs. In closing, this was a tremendous year for the company. The team executed incredibly well and consistently delivered results. While we are now navigating cross-currents in the first half of 2023, standing from the overall economic environment and from a generational industry transition from DDR4 to DDR5, we continue to see solid growth opportunities in the data center. We remain committed to making focused investments in the resources essential to delivering differentiated high quality products and innovations that address the critical performance bottlenecks between processing and memory. I'm extremely proud of the team, and I'm confident that our strategy puts us in an excellent position for long term profitable growth. And as always, I'd like to thank our customers, partners, and employees for their ongoing support. With that, I turn the call over to Des to discuss the quarterly financial results. Des?