Rambus Inc (RMBS) 2020 Q4 法說會逐字稿

Welcome to the Rambus Fourth Quarter and Fiscal Year 2020 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.

歡迎參加 Rambus 第四季和 2020 財年財報電話會議。 （操作員說明）謹此提醒，本次電話會議正在錄音。

I would now like to turn the conference over to Rahul Mathur, Chief Financial Officer. You may begin your conference.

我現在想將會議交給財務長拉胡爾·馬圖爾 (Rahul Mathur)。您可以開始您的會議了。

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 Luc Seraphin, 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 #3744169 when you hear the prompt.

謝謝營運商，歡迎參加 Rambus 2020 年第四季業績電話會議。我是財務長拉胡爾·馬圖爾。今天與我通話的是我們的執行長 Luc Seraphin。我們今天將討論的結果新聞稿已透過 8-K 表格提交給 SEC。下週可撥打 (855) 859-2056 重播此電話會議。您可以撥打免費電話，然後在聽到提示時輸入 ID #3744169 來收聽重播。

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 a slide presentation. A replay of this call can be accessed on our website beginning today at 5:00 p.m. Pacific Time.

此外，我們同時對本次電話會議進行網路廣播，並與音訊一起網路廣播投影片，我們將在今天電話會議的部分內容中引用這些投影片。因此，即使您透過電話會議加入我們，您也可能希望透過幻燈片簡報來存取網路廣播。從今天下午 5:00 開始，您可以在我們的網站上觀看本次電話會議的重播。太平洋時間。

Our discussion today will contain forward-looking statements, including our financial guidance for future periods; product and investment strategy; 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 ASC 606 on reported revenue amongst other things.

我們今天的討論將包含前瞻性陳述，包括我們對未來時期的財務指導；產品和投資策略；預期產品發布的時間；對現有技術和新取得技術的需求；我們所服務的各個市場的成長機會；我們的合併、收購和剝離活動的預期效益，包括我們整合工作的成功；風險；與新型冠狀病毒或 COVID-19 相關或由其引起的潛在不利影響以及 ASC 606 對報告收入的影響等。

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 8-Ks, 10-Qs and 10-K. These forward-looking statements may differ materially from our actual results, and we're under no obligation to update these statements.

這些聲明受到本次電話會議期間討論的風險和不確定性的影響，並且可能在我們向 SEC 提交的文件中進行更全面的描述，包括我們的 8-K、10-Q 和 10-K。這些前瞻性陳述可能與我們的實際結果有重大差異，我們沒有義務更新這些陳述。

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 rambus.com on the Investor Relations page under Financial Releases.

為了讓財務數據更加清晰，我們在新聞稿和本次電話會議中同時使用 GAAP 和非 GAAP 財務簡報。這些非 GAAP 財務數據與最直接可比較的 GAAP 指標的對帳已包含在我們的新聞稿、幻燈片演示以及我們網站 rambus.com 投資者關係頁面的財務發布下。

We've adopted ASC 606 in 2018 using the modified retrospective method, which does not restate prior periods, but rather run 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 our company's progress. We will continue to provide operational metrics such as licensing billings to give our investors better insight into our operational performance.

我們在 2018 年採用了 ASC 606，採用了修改後的追溯法，該方法不會重述前期，而是透過留存收益作為期初資產負債表調整來計算採用的累積效應。我們在 ASC 606 下的結果與先前在 ASC 605 下的結果之間的任何比較都不是追蹤我們公司進展的準確方法。我們將繼續提供許可帳單等營運指標，讓投資者更了解我們的營運績效。

The order of our call today will be as follows: Luc 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.

我們今天的電話會議順序如下：Luc 首先概述業務。我將討論我們的財務業績，包括我們對未來時期的指導，然後我們將以問答結束。

I'll now turn the call over to Luc to provide an overview of the quarter. Luc?

我現在將把電話轉給 Luc，以提供本季的概述。呂克？

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 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.

謝謝拉胡爾，大家下午好。 2020年對公司來說是非常成功的一年。持續向雲端的轉變，以及人工智慧在資料中心、5G、汽車和物聯網領域的廣泛進步，導致資料使用量呈指數級增長，對資料基礎設施的需求也不斷增加。在系統內和系統間創建快速、安全的連接仍然是限制這些市場先進硬體性能的最關鍵的設計挑戰之一。

As a provider of industry-leading chips and IP that enable critical performance improvements for data center and cloud, Rambus 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.

作為業界領先晶片和 IP 的供應商，Rambus 非常適合應對這些挑戰，這些晶片和 IP 可實現資料中心和雲端的關鍵效能改進。因此，雲端繼續成為我們所有業務的主要需求驅動因素也就不足為奇了。我們看到客戶對產品和解決方案的持續投資，這將有助於提高全球資料基礎設施的效能和安全性，並預計這種需求將持續成長。

We had a strong finish to the year, demonstrating great execution across our business lines. In Q4, we delivered on revenue 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 road map, we are poised for continued profitable growth in 2021 and beyond.

我們以強勁的業績結束了這一年，展現了我們各業務線的出色執行力。第四季度，我們實現了 6,190 萬美元的收入，符合預期，並且超越了獲利目標。這使得 2020 年全年收入和獲利指引提前。年度現金產生量增加了 44%，來自經營活動的現金為 1.855 億美元。憑藉龐大的現金產生推動對我們產品路線圖的持續投資，我們準備在 2021 年及以後實現持續的獲利成長。

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 Analyst 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.

現在轉向企業。今年是內存介面晶片成長創紀錄的一年。年度產品收入年增 56%，遠高於我們在 2019 年分析師日提供的指導。這一增長是由 DDR4 市場份額的穩步增長推動的，使我們能夠顯著超過整個市場的增長。

As we mentioned previously, there was a short-term inventory correction in the third and fourth quarter, following the buildup 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.

正如我們之前提到的，繼上半年庫存增加之後，第三季和第四季出現了短期庫存調整。我們認為，隨著消費水準開始恢復正常，這項調整的大部分已經完成。今年，我們預計我們的成長將持續，市場份額將進一步增加。

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 with our 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.

對於 DDR5，我們在記憶體客戶和 CPU 合作夥伴的認證方面處於領先地位。我們正在與所有主要 DRAM 供應商一起向資料中心和雲端客戶提供帶有我們晶片的 DDR5 模組樣品。展望未來，我們將繼續投資 DDR5 平台配套晶片的開發，以擴大我們產品組合的價值。

Additionally, we are at the forefront of innovation for new architectures and memory subsystems, and are actively being sought by ecosystem leaders as a development partner.

此外，我們處於新架構和記憶體子系統創新的前沿，並被生態系統領導者積極尋求作為開發合作夥伴。

In our silicon IP business, we continue to drive road map alignment with overall market trends and deliver best-in-class solutions for demand in cloud and edge applications. 2020 was a strong year, with annual revenue up 14% and continued design win momentum in data center, 5G and edge. This performance was supported by the successful integration of the former Northwest Logic and Verimatrix teams acquired in 2019, with both ending the year on their targeted run rate for revenue.

在我們的矽 IP 業務中，我們繼續推動路線圖與整體市場趨勢保持一致，並為雲端和邊緣應用的需求提供一流的解決方案。 2020 年是強勁的一年，年收入成長 14%，並且在資料中心、5G 和邊緣領域持續保持設計獲勝勢頭。這項業績得益於 2019 年收購的前 Northwest Logic 和 Verimatrix 團隊的成功整合，兩家公司在年底都實現了目標營收運作率。

And lastly, we signed multiple new patent license agreements and renewals with DRAM and SoC manufacturers throughout the year. In addition to the DRAM license agreements with CXMT and Micron discussed in previous quarters, we also renewed our agreement with AMD for an additional 5 years. Supported by our growing patent portfolio, these agreements are a great testament to the ongoing strength and relevance of our program.

最後，我們全年與 DRAM 和 SoC 製造商簽署了多項新的專利授權協議和續約協議。除了前幾季與長鑫儲存和美光討論的 DRAM 授權協議外，我們還與 AMD 續簽了 5 年協議。在我們不斷增長的專利組合的支持下，這些協議有力地證明了我們項目的持續實力和相關性。

With these licensing agreements secured, we have solidified a foundation of sustained cash generation that allows us to fuel our product road map 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.

在獲得這些許可協議後，我們鞏固了持續現金生成的基礎，使我們能夠推動我們的產品路線圖並投資於無機成長。展望未來，資料中心和其他不斷成長的市場中對效能要求極高的應用程式的永不滿足的需求將推動我們的研發。我們持續生產對記憶體產業至關重要的產品和創新，並解決加速資料的基本挑戰。

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.

在 2021 年伊始，我對團隊在過去幾年中取得的穩定進步感到非常高興。我們策略性地聚焦業務，不斷提升經營績效。它使我們能夠更好地服務客戶並向股東返還資本。

In closing, I am proud of the company's performance and excited by the growing opportunities ahead of us. With that, I'll turn the call over to Rahul to discuss the quarterly financial results. Rahul?

最後，我為公司的業績感到自豪，並對我們面前的不斷增長的機會感到興奮。接下來，我將把電話轉給拉胡爾，討論季度財務表現。拉胡爾？

Thanks, Luc. I'd like to begin with our financial results for the fourth quarter and for 2020.

謝謝，盧克。我想先介紹一下我們第四季和 2020 年的財務表現。

Let me start with some highlights on Slide 5. As Luc mentioned, we delivered a solid quarter and are very pleased with the ongoing execution on our strategic initiatives. Once again, in Q4, we delivered financial results in line with our revenue expectations and at the high end of our earnings expectations. We had great financial results in 2020 and ended the year very well positioned as we continue to make progress on our long-term growth strategy.

讓我從投影片 5 的一些亮點開始。正如 Luc 所提到的，我們的季度業績表現強勁，並對策略計畫的持續執行感到非常滿意。第四季度，我們的財務表現再次符合我們的收入預期，並且處於獲利預期的高端。我們在 2020 年取得了出色的財務業績，並在這一年結束時處於有利地位，因為我們繼續在長期成長策略方面取得進展。

This performance was coupled with continual improvement in our balance sheet. We ended the year with $502.6 million in cash and after implementing a $50 million share repurchase program in Q4. Our continued execution on our strategy and our operational discipline have yielded solid financial results and a strong balance sheet that affords us the flexibility to support our strategic initiatives. We are focused on the compelling data center and cloud market opportunities in front of us and are well positioned for profitable growth in 2021 and beyond.

這一業績與我們的資產負債表的持續改善相結合。在第四季度實施了 5,000 萬美元的股票回購計畫後，我們年底擁有 5.026 億美元的現金。我們持續執行我們的策略和營運紀律，取得了穩健的財務表現和強大的資產負債表，使我們能夠靈活地支持我們的策略舉措。我們專注於眼前引人注目的資料中心和雲端市場機會，並為 2021 年及以後的獲利成長做好了充分準備。

Now let me talk you through some revenue details on Slide 6. Revenue for the fourth quarter was $61.9 million, in line with our expected range. Royalty revenue was $27.7 million, while licensing billings was $64.2 million. The difference between licensing billings and royalty revenue primarily relates to timing, as we don't always recognize revenue in the same quarter we bill our customers.

現在讓我向您介紹幻燈片 6 上的一些收入詳細資訊。第四季的收入為 6,190 萬美元，符合我們的預期範圍。版稅收入為 2,770 萬美元，授權費用為 6,420 萬美元。授權帳單和特許權使用費收入之間的差異主要與時間安排有關，因為我們並非總是向客戶開立帳單的同一季度確認收入。

Going into additional detail, our product revenue was $21.8 million, consisting primarily of our buffer chip business. Our contract and other revenue was $12.4 million, consisting primarily of our silicon IP business. For the year, there's roughly $40 million of our silicon IP business that's being reflected in our licensing billings. This is almost twice what we expected at our Analyst Day in 2019. Strength across our IP businesses enabled us to meet our revenue expectations in Q4. Multiple revenue streams enable us to offset quarterly variances in any particular business.

更詳細地說，我們的產品收入為 2,180 萬美元，主要包括我們的緩衝晶片業務。我們的合約和其他收入為 1240 萬美元，主要包括我們的矽 IP 業務。今年，我們的矽 IP 業務大約有 4000 萬美元反映在我們的授權帳單中。這幾乎是我們在 2019 年分析師日預期的兩倍。我們 IP 業務的實力使我們能夠滿足第四季度的收入預期。多種收入來源使我們能夠抵消任何特定業務的季度差異。

We had a strong fiscal year. We are pleased with our execution and saw product revenue increase 56%, significantly outpacing the market as we continue to gain share. Notably, we made these gains while also improving our margins and generating cash.

我們度過了一個強勁的財政年度。我們對我們的執行情況感到滿意，隨著我們不斷獲得份額，產品收入增長了 56%，大大超過了市場。值得注意的是，我們在取得這些收益的同時也提高了利潤並創造了現金。

Let me walk you through our non-GAAP income statement on Slide 7. We again exceeded our profitability targets as we have done consistently over the past many years. Total operating expenses, including COGS for the quarter, came in at $55.8 million. Operating expenses of $46.7 million were lower than our expectations due to our continued focus on operational efficiency.

讓我向您介紹投影片 7 上的非 GAAP 損益表。我們再次超越了獲利目標，正如我們在過去多年中一貫所做的那樣。包括本季銷貨成本在內的總營運費用為 5,580 萬美元。由於我們持續專注於營運效率，營運費用為 4,670 萬美元，低於我們的預期。

We ended the quarter with head count of 623, lower than 679 in the previous quarter as we continue to align our product programs with growth markets. Under ASC 606, we recorded $2.9 million of interest income related to the financing component of our fixed fee licensing arrangements, for which we have recognized revenue but not yet received payment. We incurred $0.6 million of interest expense, primarily associated with our convertible notes. This was offset by incremental interest income related to the return on our cash and investment portfolio. After adjusting for noncash interest expense on our convertible notes, this resulted in non-GAAP interest and other income for the fourth quarter of $2.3 million.

由於我們繼續根據成長市場調整我們的產品計劃，本季末我們的員工人數為 623 人，低於上一季的 679 人。根據 ASC 606，我們記錄了與固定費用許可安排的融資部分相關的 290 萬美元利息收入，我們已確認收入但尚未收到付款。我們產生了 60 萬美元的利息費用，主要與我們的可轉換票據相關。這被與我們的現金和投資組合回報相關的增量利息收入所抵消。對可轉換票據的非現金利息支出進行調整後，第四季的非 GAAP 利息和其他收入為 230 萬美元。

Excluding the interest income related to the significant financing component related to ASC 606, this would have been $0.6 million of interest and other expense. Using an assumed flat rate of 24% of the non-GAAP pretax income, non-GAAP net income for the quarter was $6.4 million. With continued focus on cost and disciplined execution, we delivered profit that was nicely above our expectations.

不包括與 ASC 606 相關的重要融資部分相關的利息收入，這將是 60 萬美元的利息和其他費用。使用假設的非 GAAP 稅前收入 24% 的統一稅率，該季度的非 GAAP 淨利潤為 640 萬美元。透過持續關注成本和嚴格執行，我們實現的利潤遠高於我們的預期。

Our financial results for 2020 are substantially better than what we expected at 2019 Analyst Day despite the unprecedented challenges presented by COVID-19. We are delighted by the continued execution from our team.

儘管 COVID-19 帶來了前所未有的挑戰，但我們 2020 年的財務表現遠優於我們在 2019 年分析師日的預期。我們對我們團隊的持續執行力感到高興。

Now let me turn to the balance sheet details on Slide 8. Over the past several years, we've built a very strong balance sheet. Cash, cash equivalents and marketable securities totaled $502.6 million, down from the previous quarter as cash from operations of $42.1 million was offset by the $50 million accelerated share repurchase program we announced in Q4. This brings year-to-date cash from operations to $185.5 million, well above last year's full year total of $128.5 million. Even with $23 million of capital expenditure related to our new headquarter facility, free cash flow of $142.5 million was well above last year's total of $113.7 million.

現在讓我來看看投影片 8 上的資產負債表詳細資料。在過去幾年中，我們建立了非常強大的資產負債表。現金、現金等價物和有價證券總計 5.026 億美元，較上一季度有所下降，因為我們在第四季度宣布的 5000 萬美元加速股票回購計劃抵消了 4210 萬美元的營運現金。這使得年初至今的營運現金達到 1.855 億美元，遠高於去年全年的 1.285 億美元。即使與新總部設施相關的資本支出為 2,300 萬美元，自由現金流仍達到 1.425 億美元，遠高於去年的 1.137 億美元總額。

As we continue to deliver on the top line and execute on operational efficiency, we expect to continue to deliver strong cash from operations in the future. At the end of Q4, we had contract assets worth $368 million, which reflects the net present value of unbilled AR related to licensing arrangements for which the company has no future performance obligations. I expect this number to continue to trend down as we bill and collect for these contracts.

隨著我們繼續實現營收並提高營運效率，我們預計未來將繼續從營運中獲得強勁的現金。截至第四季末，我們的合約資產價值 3.68 億美元，這反映了與公司沒有未來履約義務的許可安排相關的未開票 AR 的淨現值。我預計隨著我們為這些合約開立帳單和收取費用，這個數字將繼續下降。

It's important to note that this metric doesn't represent the entire value of our existing licensing arrangement as several customers have royalty-based agreements that allow us to recognize revenue each quarter. As we sign new agreements and renew others, we endeavor to transition renewals and extensions to variable agreements that could allow us to take revenue over time as opposed to upfront.

值得注意的是，該指標並不代表我們現有授權安排的全部價值，因為一些客戶簽訂了基於特許權使用費的協議，使我們能夠每季確認收入。當我們簽署新協議並續簽其他協議時，我們努力將續約和延期過渡到可變協議，這可以讓我們隨著時間的推移而不是預先獲得收入。

As we announced previously, we were pleased to extend our existing licensing agreement with Micron in September at our existing financial terms. Including the agreement with CXMT announced in Q1, last year, we announced 2 DRAM licensing agreements that extend beyond the next renewal date for Samsung and SK Hynix. Our success in completing these contracts with both new and existing partners serves as a testament to the ongoing strength and relevance of our patent portfolio.

正如我們先前宣布的，我們很高興在 9 月按照現有財務條款延長與美光的現有許可協議。包括去年第一季與長鑫儲存宣布的協議在內，我們宣布了 2 份 DRAM 授權協議，這些協議的有效期超出了三星和 SK 海力士的下一個續約日期。我們與新舊合作夥伴成功完成這些合約證明了我們專利組合的持續實力和相關性。

Going forward, we expect to recognize $10 million of revenue related to the Micron licensing extension on a quarterly basis starting in the first quarter of 2021. Between this extension and continued buffer chip growth, our revenue is poised for strong growth in 2021.

展望未來，我們預計從2021 年第一季開始，每季確認與美光許可延期相關的1000 萬美元收入。在這一延期和持續的緩衝晶片增長之間，我們的收入預計將在2021 年實現強勁增長。

Fourth quarter CapEx was $13 million and depreciation was $6.8 million. We delivered $29.1 million of free cash flow in the quarter. Full year 2020 CapEx was $42.9 million, of which $23 million was related to our new headquarters building.

第四季資本支出為 1,300 萬美元，折舊為 680 萬美元。本季我們交付了 2,910 萬美元的自由現金流。 2020 年全年資本支出為 4,290 萬美元，其中 2,300 萬美元與我們的新總部大樓相關。

Looking forward, I expect 2021 CapEx to be less than $5 million as our spend will be offset by the refund of a tenant improvement allowance related to our new headquarters. I also expect depreciation of roughly $20 million for the full year of 2021.

展望未來，我預計 2021 年的資本支出將低於 500 萬美元，因為我們的支出將被與新總部相關的租戶改善津貼的退款所抵銷。我還預計 2021 年全年折舊約為 2000 萬美元。

Now let me turn to our guidance for the first quarter on Slide 9. As a reminder, our forward-looking guidance reflects our current best estimates, and our actual results could differ materially from what I'm about to review. In addition to the financial outlook under ASC 606, we've also been providing information on licensing billings, which is an operational metric that reflects amounts invoiced to our licensing customers during this period, adjusted for certain differences. As you see in the supplemental information we provided on Slide 13 of our earnings deck, licensing billings closely correlates with what we had historically reported as royalty revenue under ASC 605.

現在讓我談談幻燈片 9 上我們對第一季的指導。提醒一下，我們的前瞻性指導反映了我們目前的最佳估計，我們的實際結果可能與我將要審查的結果有重大差異。除了 ASC 606 規定的財務前景外，我們還提供了有關許可帳單的信息，這是一個營運指標，反映了在此期間向我們的許可客戶開出的發票金額，並根據某些差異進行了調整。正如您在損益表投影片 13 上提供的補充資訊中所看到的那樣，授權費用與我們歷史上根據 ASC 605 報告的特許權使用費收入密切相關。

Under ASC 606, we expect revenue in the first quarter between $63 million and $69 million. We expect royalty revenue between $23 million and $29 million. We also expect licensing billings between $60 million and $66 million. Our guidance reflects the contract terms of the patent licensing extension with Micron I mentioned previously as well as the expectation, we will see a return to normal buffer chip inventory consumption levels in the spring with sequential growth projected thereafter.

根據 ASC 606，我們預計第一季的營收將在 6,300 萬美元至 6,900 萬美元之間。我們預計特許權使用費收入將在 2,300 萬美元至 2,900 萬美元之間。我們也預計許可證費用在 6,000 萬至 6,600 萬美元之間。我們的指導反映了我之前提到的與美光的專利許可延期的合約條款以及預期，我們將在春季看到緩衝晶片庫存消耗恢復到正常水平，並預計此後將出現環比增長。

We expect Q1 non-GAAP total operating costs and expenses, which includes COGS, to be between $61 million and $57 million as we continue to invest in programs. Under ASC 606, non-GAAP operating results for the first quarter is expected to be between $2 million and a $12 million profit.

隨著我們繼續投資項目，我們預計第一季非 GAAP 總營運成本和費用（包括銷貨成本）將在 6,100 萬美元至 5,700 萬美元之間。根據 ASC 606，第一季非 GAAP 營運業績預計將在 200 萬美元至 1,200 萬美元之間。

For non-GAAP interest and other income and expense, which excludes interest income related to ASC 606, we expect this to be approximately $1 million of expense, which includes $0.6 million of interest expense related to the notes due in 2023. We expect our pro forma tax rate to remain consistent at roughly 24%. The 24% is higher than the statutory rate of 21%, primarily due to higher tax rates in our foreign jurisdictions. As a reminder, we pay roughly $20 million of cash taxes each year, driven primarily by our licensing agreements with our partners in Korea.

對於非GAAP 利息和其他收入和費用（不包括與ASC 606 相關的利息收入），我們預計這約為100 萬美元的費用，其中包括與2023 年到期票據相關的60 萬美元的利息費用。我們預計我們的Pro福瑪稅率維持在 24% 左右。 24% 高於 21% 的法定稅率，主要是由於我們外國司法管轄區的稅率較高。提醒一下，我們每年繳納約 2000 萬美元的現金稅，這主要是由我們與韓國合作夥伴簽訂的許可協議推動的。

We expect non-GAAP taxes to be between an expense of $0 and $3 million in Q1. We expect our Q1 share count to be roughly 116 million basic and diluted shares outstanding. This leads you to between a non-GAAP profit per share of $1.07 for the quarter.

我們預計第一季非 GAAP 稅費將在 0 至 300 萬美元之間。我們預計第一季的流通股基本股和稀釋股約為 1.16 億股。這導致該季度的非 GAAP 每股利潤為 1.07 美元。

With that said, while we don't provide guidance beyond Q1, we are comfortable with the analyst consensus estimates at the top line and bottom line for each quarter of 2021. While the near-term macroeconomic conditions are difficult for any of us to predict, consensus estimates are currently in line with our long-term strategy and current assumptions, reflecting our belief we will continue to gain share and that our product growth will continue to outpace broader semiconductor industry.

話雖如此，雖然我們不會提供第一季之後的指引，但我們對分析師對 2021 年每個季度的營收和利潤的一致預期感到滿意。雖然我們任何人都很難預測近期宏觀經濟狀況，目前的共識估計符合我們的長期策略和當前假設，反映出我們相信我們將繼續獲得份額，並且我們的產品成長將繼續超過更廣泛的半導體產業。

Let me finish with a summary on Slide 10. We are proud of the excellent performance by our team in this unpredictable macroeconomic environment. Over the past several years, we've made substantial progress strategically, operationally and financially. We realigned our portfolio to address data center and cloud opportunities and support our long-term growth strategy while consistently improving our balance sheet, generating cash and delivering value to our shareholders. Our 2020 results represent the beginning of the absolute growth we expect to see in the coming years.

最後讓我對投影片 10 進行總結。我們為我們的團隊在這個不可預測的宏觀經濟環境中的出色表現感到自豪。在過去的幾年裡，我們在策略、營運和財務方面取得了實質進展。我們重新調整了我們的投資組合，以應對資料中心和雲端機會並支持我們的長期成長策略，同時不斷改善我們的資產負債表，創造現金並為股東創造價值。我們 2020 年的業績代表了我們預計未來幾年絕對成長的開始。

Before I open up the call to Q&A, I would once again like to thank our employees for their continued teamwork and execution resilience during these uncertain times. Everyone, please stay safe and take care of yourself and your families.

在開始問答之前，我要再次感謝我們的員工在這個不確定的時期持續的團隊合作和執行力。請大家注意安全，照顧好自己和家人。

With that, I'll turn the call back to our operator to begin Q&A. Could we please have our first question?

之後，我會將電話轉回給我們的接線生以開始問答。我們可以問第一個問題嗎？

(Operator Instructions) Your first question comes from Gary Mobley with Wells Fargo.

（操作員說明）您的第一個問題來自富國銀行的加里·莫布里（Gary Mobley）。

Congratulations on strong execution throughout 2020. I wanted to first tackle the topic on the buffer chip sales and the outlook for the balance of 2021. Now if I'm not mistaken, Intel recently rolled out, it's Cascade Lake and that increases the memory channel count from 6 to 8. And I realize not every customer for that particular processor generation will utilize all channels, but assuming a large portion of them do, how does that impact your growth? And I know as well related to that, what is your best estimate as to the timing of mass shipments of DDR5?

恭喜 2020 年的強勁執行力。我想先解決有關緩衝晶片銷售和 2021 年平衡展望的主題。現在，如果我沒記錯的話，英特爾最近推出了 Cascade Lake，它增加了內存通道從6 數到8 。我意識到並不是該特定處理器世代的每個客戶都會利用所有管道，但假設其中很大一部分都會利用所有管道，這對您的成長有何影響？我也知道與此相關，您對 DDR5 批量發貨時間的最佳估計是什麼？

Gary, thanks for your question. Yes. So I'll start by saying that on buffer chip, last year was a great year for us as well with this 50% growth on the product side, and we expect to continue to grow on the basis of our continued improvement on design wins with our customers.

加里，謝謝你的問題。是的。因此，我首先要說的是，在緩衝晶片方面，去年對我們來說也是偉大的一年，產品方面增長了 50%，我們預計在設計勝利的持續改進的基礎上繼續增長我們的顧客。

Cascade Lake, as you said, is going to be introduced this year. There's going to be a transition between the current Skylake version and Cascade Lake. But because our footprint in Cascade Lake was better than what we had in Skylake, we see that transition as being positive for us, and we expect to continue to grow and grow share in that market.

正如你所說，Cascade Lake 今年將推出。目前的 Skylake 版本和 Cascade Lake 之間將會有一個過渡。但由於我們在 Cascade Lake 的足跡比在 Skylake 的足跡要好，我們認為這種轉變對我們來說是積極的，我們預計將繼續成長並擴大在該市場的份額。

When it comes to DDR5, as you remember, we were the first one to invest in DDR5 chips. We were the first ones to introduce those to market. We have received small orders from all customers who build modules that they ship to their customers. And we expect DDR5 to start to ship in volume next year. We expect to get the first orders towards the end of this year. The crossover between DDR4 and DDR5 in the market is not going to happen before 2023. But that market is a good market for us, and we expect to continue to gain share in 2021, following the trend that we established over the last 3 years.

說到DDR5，大家還記得嗎，我們是第一個投資DDR5晶片的。我們是第一批將這些產品推向市場的公司。我們收到了所有客戶的小訂單，他們建立了模組並將其運送給客戶。我們預計 DDR5 將於明年開始批量出貨。我們預計將在今年底收到第一批訂單。 DDR4 和 DDR5 之間的市場交叉不會在 2023 年之前發生。但該市場對我們來說是一個很好的市場，我們預計將按照過去 3 年建立的趨勢，在 2021 年繼續獲得份額。

Okay. Thanks, Luc. And related to the buffer chip business, I can't help but notice that the gross margin for that product category or that revenue category continues to trend up. If I'm not mistaken, in the fourth quarter it was above 70% and crept up each and every quarter, even in the high 60% that preceded 3 quarters. And so maybe if you can share with us just a little more detail on what's driving that stronger gross margin for those buffer chip sales.

好的。謝謝，盧克。與緩衝晶片業務相關，我不禁注意到該產品類別或該收入類別的毛利率持續呈上升趨勢。如果我沒記錯的話，第四季這一比例超過了 70%，並且每個季度都在攀升，甚至在前三個季度達到了 60% 的高點。因此，也許您可以與我們分享更多關於推動緩衝晶片銷售毛利率提高的因素的更多細節。

Yes, that's a great question. This is operational discipline. We've stressed that over the last few years. We've insisted on having high-quality products that drive to high yields. We continuously improve our cost base on the operations side and supply chain side and we have our pricing under control. So that's really operational discipline that allows us to keep those margins, which, as you say, are very good margin for this type of products in that market.

是的，這是一個很好的問題。這就是操作紀律。過去幾年我們一直強調這一點。我們堅持以高品質的產品來推動高產量。我們不斷改善營運方面和供應鏈方面的成本基礎，並且我們的定價處於控制之中。因此，這確實是營運紀律，使我們能夠保持這些利潤，正如您所說，對於該市場的此類產品來說，這是非常好的利潤。

Gary, it's Rahul. Thanks, first, for your very kind words at the beginning, recognizing just the performance over 2020. I think on a long-term basis, I expect that we'll maintain those gross margins kind of in that 60% range. Obviously, margin shift from product to product, platform to platform, where you are in the cycle as you ramp as well. I think our strong margins also show the value that we're bringing to our partners through a lot of the improvements that Luc mentioned in terms of performance as well as quality.

加里，我是拉胡爾。首先，感謝您一開始的善意之言，對 2020 年的業績表示認可。我認為，從長遠來看，我預計我們將把毛利率維持在 60% 的範圍內。顯然，利潤會從一個產品轉移到另一個產品，從一個平台轉移到另一個平台，隨著你的發展，你也處於這個週期。我認為我們強勁的利潤率也表明了我們透過 Luc 提到的性能和品質方面的許多改進為合作夥伴帶來的價值。

I think the other thing I've been very pleased with is what you've seen over the last year, is that we've been able to grow our product business while also maintaining those high gross margins and dramatically improving operating margins as well. So we've been very pleased with that performance, and you see it show up in our operating cash flow.

我認為我非常滿意的另一件事是去年我們所看到的，那就是我們能夠發展我們的產品業務，同時保持高毛利率並大幅提高營業利潤率。因此，我們對這一業績非常滿意，你可以看到它體現在我們的營運現金流中。

Your next question comes from the line of Sidney Ho with Deutsche Bank.

你的下一個問題來自德意志銀行的 Sidney Ho。

Congrats on a good quarter. Hey, Rahul, I know you don't guide based on ASC 605. But if that were to follow ASC 605, replacing royalty revenue with licensing billings, it would suggest revenue about $98 million and EPS $0.28 for the Q4. Is that about right?

恭喜季度表現良好。嘿，拉胡爾，我知道您不是根據ASC 605 進行指導。但如果遵循ASC 605，用許可賬單取代特許權使用費收入，則建議第四季度的收入約為9800 萬美元，每股收益0.28 美元。是這樣嗎？

And similarly, for 1Q, that would imply revenue of $1.03 and EPS of $0.28. Just want to make sure that I'm in the ballpark.

同樣，對於第一季度，這意味著收入為 1.03 美元，每股收益為 0.28 美元。只是想確保我在球場內。

Sidney, thanks very much for your question. Obviously, we only provide numbers under ASC 606. But if you were to substitute licensing billings from what we've historically reported as royalty revenue, then I think you get numbers that are closer to what we used to report under ASC 605. And if I were to do your math, I think I get the same numbers that you do.

西德尼，非常感謝你的提問。顯然，我們只提供 ASC 606 下的數字。但是，如果您用我們歷史上報告的特許權使用費收入替換許可賬單，那麼我認為您得到的數字更接近我們過去根據 ASC 605 報告的數字。如果我要做你的數學，我想我得到的數字和你的一樣。

Okay. That's good. Just my follow-up question is, at the last Analyst Day, you gave us a sense about revenue expectations for calendar 2020, with the range for each category. And obviously, you guys did much better than that. Are you in a position to give us an idea what you're thinking for 2021 by segment, maybe qualitatively if not quantitatively?

好的。那挺好的。我的後續問題是，在上一次分析師日，您讓我們了解了 2020 年的收入預期，以及每個類別的範圍。顯然，你們做得比這好得多。您能否向我們介紹一下您對 2021 年各細分市場的想法，如果不是定量的話，也許是定性的？

And maybe a follow-up to that question. Specifically related to silicon IP business, which you grow 14% year-over-year: One, how much of that is organic versus inorganic? And two, how should we think about the growth rate of that business longer term? And what is the right base number to start off with in 2020?

也許是這個問題的後續行動。具體與矽 IP 業務相關，該業務年增 14%：第一，其中有機與無機的比例是多少？第二，我們該如何考慮該業務的長期成長率？ 2020 年開始的正確基數是多少？

So lots of questions. Let me see if I can go through them one by one. One, in terms of annual numbers for 2021, as I mentioned in our prepared remarks, we only provide guidance one quarter at a time. With that said, I'm comfortable with consensus estimates for each quarter on the top line and bottom line for 2021. If you were to look at consensus estimates, you would see some fairly nice growth over the course of 2021. I think predominantly, that's going to come again from our chip business. I think most analysts have our chip business growing from product revenue of $114 million in 2020 to something like $140 million or $145 million in 2021.

所以有很多問題。讓我看看是否可以一一完成。第一，就 2021 年的年度數據而言，正如我在準備好的演講中提到的，我們每次只提供一個季度的指導。話雖如此，我對 2021 年每個季度的營收和利潤的共識估計感到滿意。如果你看一下共識估計，你會發現 2021 年會出現一些相當不錯的增長。我認為主要是，這將再次來自我們的晶片業務。我認為大多數分析師認為我們的晶片業務將從 2020 年的 1.14 億美元產品收入增長到 2021 年的 1.4 億美元或 1.45 億美元左右。

I think from a patent licensing perspective, what we've said consistently is that Q4 of 2020 represented the last of the significant structural step-downs that we saw in our licensing program. So in 2021 and for several years past, I expect patent licensing to be roughly flat. So that should be somewhere between $200 million and $220 million a year. So call it about $210 million a year at the midpoint. The reason there is a range is that we're perpetually in the process of renewing with our partners, as well as signing new partners. And so just based on the timing and structure of those renewals, you'll see some quarterly variability. But I expect patent licensing to stay in that kind of $200 million to $220 million for several years.

我認為從專利授權的角度來看，我們一直在說的是 2020 年第四季是我們在授權計畫中看到的最後一次重大結構性下降。因此，我預計 2021 年以及過去幾年的專利授權量將大致持平。所以每年應該在 2 億到 2.2 億美元之間。因此，中間值約為每年 2.1 億美元。之所以有一個範圍，是因為我們不斷地與合作夥伴續約，並簽署新的合作夥伴。因此，僅根據這些續訂的時間和結構，您將看到一些季度變化。但我預計專利授權在未來幾年內將維持在 2 億至 2.2 億美元的水準。

As a reminder, as Luc mentioned, we signed with CXMT and Micron in 2020. And the Micron extension now pushes them through the end of 2024. So the next major renewal for us is Samsung up to 2023, and that's why we have comfort in terms of what that number looks like.

提醒一下，正如Luc 所提到的，我們在2020 年與長鑫存儲和美光簽約。美光延期現在將他們推到2024 年底。因此，我們的下一個重大續約是三星，直到2023 年，這就是為什麼我們對就這個數字而言。

So then if you look at those pieces in terms of product revenue and patent licensing, the remainder then is the silicon IP business. Now as I mentioned in our prepared remarks, in 2020, because of the structure of our agreements and because of, as you mentioned, the acquisitions that we closed in 2019, there was about $40 million related to our silicon IP business that really showed up in licensing billings. So if you take that $40 million and add it to what we reported for contracts and other, it certainly provides a silicon IP business that's very much in the range of what we discussed at our 2019 Analyst Day.

因此，如果你從產品收入和專利授權的角度來看這些部分，剩下的就是矽 IP 業務。正如我在準備好的演講中提到的，2020 年，由於我們協議的結構，以及正如您所提到的，我們在2019 年完成的收購，與我們的矽IP 業務相關的大約4000 萬美元真正出現了在許可證帳單中。因此，如果將這 4000 萬美元添加到我們報告的合約和其他方面，它肯定會提供矽 IP 業務，這在我們 2019 年分析師日討論的範圍內。

For the growth that we saw in 2020, certainly, the inorganic benefit was there, and that's what represented the majority of the growth that we saw in 2020. Going forward, I'd like to see this business continue to grow in the double-digit range. I think there's a great market opportunity for us. And particularly as we narrow our focus, both on memory and security into markets where we have great differentiation, I think we can continue to support that growth.

對於我們在 2020 年看到的成長，當然，無機效益是存在的，這就是我們在 2020 年看到的成長的大部分。展望未來，我希望看到這項業務繼續以雙倍成長。數位範圍。我認為我們有一個很好的市場機會。特別是當我們將注意力集中在記憶體和安全性方面，進入我們具有巨大差異化的市場時，我認為我們可以繼續支持這種成長。

So Sidney, I hope I answered all the questions that you had there.

西德尼，我希望我回答了你在那裡提出的所有問題。

Your next question comes from the line of John Pitzer with Crédit Suisse.

您的下一個問題來自瑞士信貸銀行的約翰‧皮策 (John Pitzer)。

Congratulations on solid results. Luc, in your prepared comments, you talked about the inventory correction in cloud being mostly Q3, Q4. And clearly, with your product revenue guidance for March that's playing out, I'm kind of curious, how do we think about kind of growth from March relative to your ability to continue to capture share this year?

祝賀取得了紮實的成果。 Luc，在您準備好的評論中，您談到雲端中的庫存修正主要是第三季、第四季。顯然，隨著你們 3 月份的產品收入指導即將出台，我有點好奇，相對於你們今年繼續佔領市場份額的能力，我們如何看待 3 月份的成長？

And again, there's some Asian competition that's heating up a little bit in the memory buffer side of the business. So I can be kind of curious as how you think about competition over the next several years?

再說一遍，在記憶體緩衝區業務方面，一些亞洲競爭正在加劇。所以我有點好奇你如何看待未來幾年的競爭？

Yes, that's a great question. So I think in the short run, as we said, the inventory correction is behind us. We see consumption resuming. The first step for us is to use the introduction of Cascade Lake to the market where we have better design win shares we had on Skylake. So that's going to grow the revenue beyond Q1.

是的，這是一個很好的問題。因此，我認為從短期來看，正如我們所說，庫存調整已經過去。我們看到消費正在恢復。我們的第一步是將 Cascade Lake 引入市場，我們在 Skylake 上擁有更好的設計，贏得了份額。因此，第一季之後的營收將會成長。

The second thing that is going to happen to us this year is that we are introducing new products in the DDR4 memory family, especially the DB product, which will kick in, in the second half of the year. And finally, the initial demands of DDR5, where the content -- the dollar content on every module is higher than on DDR4 is going to kick in towards the end of the year. So we have a series of trigger points throughout the year that will allow us to continue to grow share quarter-over-quarter.

今年我們將發生的第二件事是，我們將推出 DDR4 記憶體系列的新產品，特別是 DB 產品，該產品將在今年下半年推出。最後，DDR5 的初始需求將在今年年底開始顯現，其中每個模組的價格含量都高於 DDR4。因此，我們全年有一系列觸發點，這將使我們能夠繼續季度環比增長份額。

In terms of competition with gain share based on the quality of our products and our ability to ship without any disruptions on the current generations of products, on the next generation of products we started development way early in that market. We have engaged with the ecosystem very, very early. And the feedback we have from the ecosystem is that we are ahead in terms of performance for these new products. So that makes us feel comfortable.

在基於我們的產品品質和我們在不中斷當前幾代產品的情況下發貨的能力的基礎上獲得份額的競爭方面，我們在該市場很早就開始了下一代產品的開發。我們很早就參與生態系統了。我們從生態系統得到的回饋是，我們在這些新產品的性能方面處於領先地位。所以這讓我們感覺很舒服。

And what I would add to this is, in the longer run, we see potential with new buffer chip architectures that are being driven by the cloud guys. And we expect to play a key role there as well based on the focus we have on the type of IP and the type of products that are required for these new markets. So we see the steps that we have to go through to generate that growth.

我要補充的是，從長遠來看，我們看到了由雲端運算人員推動的新緩衝晶片架構的潛力。基於我們對智慧財產權類型和這些新市場所需的產品類型的關注，我們希望在那裡發揮關鍵作用。因此，我們看到了實現這種成長所必須採取的步驟。

Perfect. And then as my follow-up, you guys did a great job in the quarter on the ASR, but you've got revenue growth accelerating. I think your CapEx requirements come down in '21 versus '20. How do we think about use of cash from here? The stock still looks relatively cheap, but I know you also have other sort of corporate goals around potential M&A. But just kind of frame that out for us for the balance of '21.

完美的。作為我的後續行動，你們在本季的 ASR 方面做得很好，而且收入成長也在加速。我認為您的資本支出要求在 21 年比 20 年有所下降。我們如何看待這裡使用現金？該股票看起來仍然相對便宜，但我知道您圍繞潛在的併購還有其他類型的企業目標。但這只是為我們21年的剩餘時間制定一個框架。

Sure, John, it's a great question, and great to hear from you. We've been very consistent in terms of our capital allocation. The first is to continue to support our organic growth. I've been very pleased with our ability to take cost out of the company, specifically around infrastructure, and you've seen that show up in our P&L and spend. What I'd like to do is to kind of maintain SG&A in 2021 at roughly a flat level, but then continue to grow and invest in R&D, specifically for products that will help us continue to show very strong growth in the years to come in our product and IP businesses.

當然，約翰，這是一個很好的問題，很高興收到你的來信。我們在資本配置方面一直非常一致。首先是繼續支持我們的有機成長。我對我們降低公司成本的能力感到非常滿意，特別是在基礎設施方面，您已經看到這體現在我們的損益表和支出中。我想做的是將 2021 年的 SG&A 維持在大致持平的水平，但隨後繼續增長並投資於研發，特別是那些將幫助我們在未來幾年繼續表現出非常強勁增長的產品我們的產品和知識產權業務。

So the first goal from a capital allocation perspective is to continue to invest in that organic growth. And now that we have the step-downs from that licensing behind us, I'm really looking forward to seeing absolute growth, both on the top line as well as on the bottom line in the years to come.

因此，從資本配置的角度來看，首要目標是繼續投資有機成長。現在我們已經獲得了許可的逐步減少，我真的很期待看到未來幾年收入和利潤的絕對增長。

The second thing that we look at from a capital allocation perspective is inorganic growth. We are very pleased with the transactions we did in 2019, specifically in terms of the acquisition of the Verimatrix business and Northwest Logic. Those have supplemented and complemented our offerings very nicely. And you've seen that in terms of customer engagement, you've seen it in terms of employee partner engagement as well. So we continue to be very active in terms of looking at different acquisition opportunities. With the cash that we have on hand and relatively little leverage. But we certainly have firepower that's significantly bigger than you would expect for a company of our size. We will continue to be very thoughtful in terms of any transactions, but certainly have an ambition to do things that are larger, not just smaller as well. But of course, it depends on what's there. But we'll continue to look at that strategic, operational and financial fit.

我們從資本配置的角度來看的第二件事是無機成長。我們對 2019 年所做的交易感到非常滿意，特別是在收購 Verimatrix 業務和 Northwest Logic 方面。這些很好地補充和補充了我們的產品。您已經在客戶參與度方面看到了這一點，在員工合作夥伴參與度方面也看到了這一點。因此，我們繼續非常積極地尋找不同的收購機會。我們手頭上有現金，槓桿相對較小。但我們的火力肯定比您對我們這種規模的公司的預期要大得多。我們將繼續在任何交易方面都深思熟慮，但肯定有志於做更大的事情，而不僅僅是更小的事情。但當然，這取決於那裡有什麼。但我們將持續專注於策略、營運和財務方面的配合。

The third priority we have from a capital allocation perspective is return of capital to our shareholders. What we've talked about is returning 40% to 50% of our free cash flow back to our shareholders. If you look at our investor presentation, not the earnings deck that we have up now but our investor presentation, what you see is fantastic growth in cash from operations, free cash flow and free cash flow per share over the past couple of years. What you also see is that consistent commitment to returning capital. So as you noted, we announced a $20 million share repurchase program in Q4 as part of our results after announcing Q3. And then we also announced afterwards, a $50 million accelerated share repurchase program in Q4. So continue to look at that as a consistent part of our capital allocation. So hopefully, that is complete and hopefully not too complete in answering your question, John.

從資本配置的角度來看，我們的第三個優先事項是向股東返還資本。我們談到的是將 40% 到 50% 的自由現金流回饋給股東。如果你看我們的投資者演示，不是我們現在的收益表，而是我們的投資者演示，你會看到過去幾年來自運營的現金、自由現金流和每股自由現金流的驚人增長。您也看到的是對資本返還的一貫承諾。正如您所指出的，我們在宣布第三季業績後，在第四季度宣布了一項 2000 萬美元的股票回購計劃，作為我們業績的一部分。隨後我們也宣布了第四季 5000 萬美元的加速股票回購計畫。因此，請繼續將其視為我們資本配置的一致部分。所以希望這已經完整地回答了你的問題，希望不是太完整，約翰。

(Operator Instructions) Your next question comes from the line of Suji Desilva with ROTH Capital.

（操作員說明）您的下一個問題來自羅斯資本的 Suji Desilva 專線。

Congratulations on the strong end of the year. So in the -- you've been asked questions about the cloud, the memory buffer business. I'm curious, Intel talked about the digestion persisting until the second half of '21, whereas your -- you guys are feeling like it'll come out earlier. Can you maybe kind of contrast the difference there? And maybe how -- where you're positioned Intel versus AMD, if that's a helpful element here?

恭喜您在今年底取得了強勁的業績。因此，您被問到有關雲端、記憶體緩衝區業務的問題。我很好奇，英特爾談到消化將持續到 21 年下半年，而你們 - 你們感覺它會更早出來。你能對比一下那裡的差異嗎？也許你對英特爾與 AMD 的定位如何，如果這是一個有用的元素？

Suji, yes, that's a great question. We're kind of agnostic to who ships these processors to the cloud guys, some strength in the cloud space. Others are stronger with the server guys. We are engaged with all processor manufacturers. We have strong relationship with all of them. And as long as the market grows and we continue to grow share in that market, whether it's internal AMD is kind of -- we kind of immune to this, being different to this.

蘇吉，是的，這是一個很好的問題。我們不知道誰將這些處理器運送給雲端運算領域的一些力量。其他人與伺服器人員一起更強。我們與所有處理器製造商都有合作。我們與他們所有人都有牢固的關係。只要市場成長，我們在該市場的份額繼續成長，無論是 AMD 內部的，我們都會對此免疫，與此不同。

So we're happy to see that Ice Lake is going to start ramping. We're happy to have our relationship with AMD as well. And I think between the 2, we'll continue to gain share in 2021.

所以我們很高興看到 Ice Lake 將開始加速。我們也很高興與 AMD 建立合作關係。我認為，在這兩者之間，我們將在 2021 年繼續獲得份額。

Okay. Luc, that's helpful. And then I think, Rahul, you talked about OpEx and being able to redeploy R&D to some extent, the employee count coming down. Just -- I'm wondering what areas are you emphasizing the investment or redeployment into, so we understand what your growth investment focuses are? And is there any further opportunity there just to understand the OpEx trajectory?

好的。盧克，這很有幫助。然後我想，拉胡爾，你談到了營運支出以及能夠在某種程度上重新部署研發，員工人數下降。只是—我想知道您強調投資或重新部署到哪些領域，以便我們了解您的成長投資重點是什麼？是否還有進一步的機會來了解營運支出軌跡？

Sure. Absolutely. So in terms of where we're spending more cash, it's certainly in growth in our product business as well as our silicon IP business. So on the product business, it continues to be in the buffer chip program as well as the companion chips related to DDR5. I think that's an exciting opportunity for us in the years to come to really grow that business very nicely. Does that help answer your question, Suji?

當然。絕對地。因此，就我們在哪些方面花費更多現金而言，肯定是我們的產品業務以及矽 IP 業務的成長。所以在產品業務上，繼續在緩衝晶片方案以及與DDR5相關的配套晶片方面。我認為這對我們來說是一個令人興奮的機會，可以在未來幾年真正很好地發展這項業務。這有助於回答你的問題嗎，Suji？

Yes. No, I just want to understand if there was more opportunity in the redeployment or whether kind of you're reaching a steady state there?

是的。不，我只是想了解重新部署是否有更多機會，或者您是否在那裡達到了穩定狀態？

Suji, this is Luc. One thing that is working nicely for us, and we explained this at our Analyst Day in 2019 is that we have a very focused portfolio these days, and that's where we invest in. And we're gaining share in attractive high-growth markets. The markets of our customers are high-growth markets. And you keep listening, hearing us saying about AI, 5G, IoT, auto, cloud, data centers. All of these markets use high-speed interface technologies, a lot of them use high-speed memory interface technology, all of them use security. So as we focus our product portfolio, we focus also our market targets to these high-growth markets that have a great potential for us. And this has been really, really good for us.

蘇吉，這是路克。對我們來說效果很好的一件事是，我們在2019 年分析師日上解釋了這一點，那就是我們現在有一個非常專注的投資組合，這就是我們投資的領域。而且我們正在有吸引在力的高成長市場中獲得份額。我們客戶的市場是高成長的市場。您繼續傾聽，聽到我們談論人工智慧、5G、物聯網、汽車、雲端、資料中心。所有這些市場都使用高速介面技術，其中許多使用高速記憶體介面技術，所有這些都使用安全性。因此，當我們專注於我們的產品組合時，我們也將我們的市場目標集中在這些對我們來說具有巨大潛力的高成長市場。這對我們來說真的非常非常好。

And the other thing that is happening in the background is that every activity we have is feeding the other. Our patent licensing activity feed our IP development for those markets, our IP development feeds our product development. And vice versa, what we develop in products and IP feeds our patent portfolio. So we've gone into this virtuous cycle of focusing to high-growth market, developing IP that have high demand for those markets and having a virtuous circle between all of our activities to address those markets. And that explains the growth that we've enjoyed last year, and we continue to see the year coming.

背景中發生的另一件事是，我們的每項活動都在互相促進。我們的專利授權活動促進了我們針對這些市場的智慧財產權開發，我們的智慧財產權開發促進了我們的產品開發。反之亦然，我們在產品和智慧財產權中開發的內容豐富了我們的專利組合。因此，我們已經進入了這樣的良性循環：專注於高成長市場，開發對這些市場有高需求的智慧財產權，並在我們滿足這些市場的所有活動之間建立良性循環。這解釋了我們去年所享受的成長，並且我們繼續展望未來的一年。

Suji, what I was going to add is, I apologize, I think this is what you're going for, is that on a longer-term basis and years out, what I'd expect is that we'll try to keep SG&A roughly flat from a dollar perspective in 2021. You might see a small growth related to the normal small percentage increases every year and the years out. But you'll continue to see a spend in R&D as we invest in new programs.

Suji，我要補充的是，我很抱歉，我認為這就是你想要的，從長遠來看，幾年後，我期望我們會盡力保持 SG&A從美元角度來看，2021 年大致持平。您可能將看到與每年和未來幾年正常的小百分比增長相關的小幅增長。但當我們投資新項目時，您將繼續看到研發支出。

I think from an overall margin perspective, as we continue to ship more products, we've been delighted with our product gross margin. But as we ship more products, you might see gross margin tick down, but I'd like to maintain the strong operating performance that you saw in 2020.

我認為從整體利潤率的角度來看，隨著我們繼續出貨更多產品，我們對產品毛利率感到滿意。但隨著我們交付更多產品，您可能會看到毛利率下降，但我希望保持您在 2020 年看到的強勁營運表現。

At this time, there are no further questions. I will hand the call back to Luc for any closing remarks.

目前，沒有其他問題了。我會將電話轉回給 Luc，讓其發表結束語。

Thank you, everyone, who has joined us today for your continued interest and time. We hope each of you stay safe and healthy in the new year and look forward to speaking with you again soon. Have a great day. Thank you.

感謝今天加入我們的所有人，感謝你們持續的關注和時間。我們希望大家在新的一年保持安全和健康，並期待很快再次與您交談。祝你有美好的一天。謝謝。

Thank you. This now concludes today's conference. You may now disconnect.

謝謝。今天的會議到此結束。您現在可以斷開連線。