Rambus Inc (RMBS) 2017 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Rambus Q1 2017 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.

女士們、先生們，美好的一天，歡迎參加 Rambus 2017 年第一季財報電話會議。（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 CFO, Rahul Mathur. You may begin.

我現在想將會議交給財務長拉胡爾·馬圖爾 (Rahul Mathur)。你可以開始了。

Thank you, and welcome to the Rambus first quarter 2017 results conference call. I'm Rahul Mathur, CFO. And on the call with me today is Dr. Ron Black, our President and 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 number 99301279 when you hear the prompt. 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 the slide presentation. A replay of this call can be accessed on our website beginning today at 5 p.m. Pacific Time.

謝謝，歡迎參加 Rambus 2017 年第一季業績電話會議。我是財務長拉胡爾·馬圖爾。今天與我通話的是我們的總裁兼執行長 Ron Black 博士。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 號碼 99301279 來收聽重播。此外，我們正在同時對本次電話會議進行網路直播。除了音訊之外，我們還播放網路廣播幻燈片，我們將在今天電話會議的部分內容中參考這些幻燈片。因此，即使您透過電話會議加入我們，您也可能想要存取帶有幻燈片簡報的網路廣播。從今天下午 5 點開始，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。

In an effort to provide greater clarity in the financials, we're using both GAAP and non-GAAP pro forma financial presentations in both our press release and also on this call. Our discussion today will contain certain forward-looking statements regarding our financial guidance for future periods, including Q2 2017 prospects, product strategies, timing of expected product launches, demand for existing and newly acquired technologies, potential benefits of our recent acquisitions and the growth opportunities of the various markets we serve, among other things.

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都使用 GAAP 和非 GAAP 預估財務簡報。我們今天的討論將包含有關我們未來時期財務指導的某些前瞻性陳述，包括2017 年第二季前景、產品策略、預期產品發佈時間、對現有和新收購技術的需求、我們最近收購的潛在收益以及成長機會除其他外，我們服務的各個市場。

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-Ks. 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。

Further, as mentioned, we will discuss non-GAAP financial results today and have posted on our website a reconciliation of these non-GAAP financials to the most directly comparable GAAP measures in our press release and our slide presentation. You can see this on our website at rambus.com on the Investor Relations page under Financial Releases.

此外，如上所述，我們今天將討論非 GAAP 財務業績，並在我們的網站上發布了這些非 GAAP 財務數據與我們的新聞稿和幻燈片演示中最直接可比較的 GAAP 指標的調整表。您可以在我們的網站 rambus.com 的「投資者關係」頁面上的「財務發布」下看到此資訊。

The order of our call today will be as follows: Ron will start with an overview of the business; I will discuss our financial results, including the guidance we issued in today's press release; and then we will end with Q&A.

我們今天的電話會議順序如下：羅恩將首先概述業務；我將討論我們的財務業績，包括我們在今天的新聞稿中發布的指導；然後我們將以問答結束。

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

我現在將把電話轉給羅恩，以提供本季的概述。羅恩？

Thanks, Rahul, and good afternoon, everyone. The first quarter of the year was another good one for us and I'm pleased with the progress we're making across all of our businesses. Revenues were $97.4 million, up 34% year-over-year. Our memory and security businesses are doing well, and our revenue was at the high end of the guidance we provided. Rahul will go through the financial details in a few minutes, but we are off to a good start for the year and our acquisitions continue to execute to our expectations. We made substantial progress in our Memory and Interfaces Division this past quarter. Our licensing program remains robust, and we continue to extend our portfolio beyond the DRAM market, including a signed agreement with Western Digital to utilize both our memory and security technologies with a particular emphasis on Flash memories.

謝謝拉胡爾，大家下午好。今年第一季對我們來說又是一個好季度，我對我們所有業務所取得的進展感到高興。營收為 9,740 萬美元，較去年同期成長 34%。我們的記憶體和安全業務表現良好，我們的收入處於我們提供的指導的高端。拉胡爾將在幾分鐘內詳細介紹財務細節，但我們今年有了一個良好的開端，我們的收購繼續按照我們的預期執行。上個季度我們的記憶體和介面部門取得了實質進展。我們的授權計劃仍然穩健，我們繼續將我們的產品組合擴展到 DRAM 市場之外，包括與西部資料簽署的協議，以利用我們的記憶體和安全技術，特別是快閃記憶體。

Expanding our IP core solutions, we introduced our High Bandwidth Memory PHY solution, targeting networking and data center applications and designed for system that require low latency and high bandwidth memory. This solution, which is available on GLOBALFOUNDRIES 14-nanometer FinFET process technology, is fully compliant with the JEDEC HBM2 standard and meets the needs of today's most data-intensive tasks by delivering data rates of up to 2,000 megabits per second per data pin and a total bandwidth of 256 gigabits per second. Just as a reference, that is greater than 10x higher bandwidth than existing DDRM, (inaudible) solution shipping today.

為了擴展我們的 IP 核解決方案，我們推出了高頻寬記憶體 PHY 解決方案，針對網路和資料中心應用，專為需要低延遲和高頻寬記憶體的系統而設計。該解決方案採用 GLOBALFOUNDRIES 14 奈米 FinFET 製程技術，完全符合 JEDEC HBM2 標準，透過提供每個資料引腳每秒高達 2,000 兆位元的資料速率和總頻寬為每秒 256 吉比特。作為參考，這比目前發貨的現有 DDRM（聽不清楚）解決方案的頻寬高出 10 倍以上。

On the SerDes side, we were pleased to be a key partner in a multi-company collaboration, where Samsung taped out a 14-nanometer network processor utilizing its 14LPP process technology and our high-speed 28 gig SerDes solution. This was an important collaboration and is the first product to come from Samsung's I-Cube solution that they are expecting to be adopted into applications, such as computing, server and artificial intelligence in the near future. Also during the quarter, we introduced the availability of our 56 gig SerDes PHY on cutting-edge FinFET process technology and partnered with Samsung to develop it on their 10-nanometer LPP process node. Our server DIMM chipset is on track, and we are shipping product to key customers in the data center.

在 SerDes 方面，我們很高興成為多公司合作的關鍵合作夥伴，三星利用其 14LPP 製程技術和我們的高速 28 gig SerDes 解決方案流片了 14 奈米網路處理器。這是一次重要的合作，也是三星 I-Cube 解決方案的首款產品，他們希望在不久的將來將其應用於運算、伺服器和人工智慧等應用。同樣在本季度，我們推出了採用尖端 FinFET 製程技術的 56 GB SerDes PHY，並與三星合作在其 10 奈米 LPP 製程節點上進行開發。我們的伺服器 DIMM 晶片組已步入正軌，我們正在將產品運送給資料中心的主要客戶。

And in our Emerging Solutions Division, we continue our project with Microsoft to help define memory system requirements for quantum computing, enhance memory capabilities, reducing energy consumption and improving overall system performance utilizing memory at cryogenic temperatures. We are excited about the progress we're making on this program with Microsoft as we have expanded our collaboration and started development of a prototype system to optimize memory performance at cryogenic temperatures.

在我們的新興解決方案部門，我們繼續與 Microsoft 合作的項目，幫助定義量子運算的記憶體系統需求、增強記憶體功能、降低能耗並提高在低溫下利用記憶體的整體系統效能。我們對與微軟在該專案上的進展感到興奮，因為我們擴大了合作並開始開發原型系統以優化低溫下的記憶體效能。

Our investment in these technology initiatives will help provide the foundation for long-term growth. Turning now to our Security Division, we were pleased with our continued momentum as Q1 was an excellent quarter with the launch of our Unified Payment Platform at Mobile World Congress in Barcelona. This platform enhances payment security and reduces costs for retailers by easily integrating payment cards, gift cards, loyalty points and coupons into a single mobile wallet and shopping app for a seamless shopping experience for consumers. What is so compelling about the solution is that it securely converts and manages digital value to enable consumers to pay with credit, points and coupons in a single transaction and transform in that manner how they shop and pay. By using tokenization, the risk of card on file fraud is reduced by replacing key account information with temporary data. As you can see, we have launched a comprehensive platform and one that we're very excited about and we'll be sharing updates on throughout the year.

我們對這些技術計劃的投資將有助於為長期成長奠定基礎。現在轉向我們的安全部門，我們對我們持續的勢頭感到高興，因為第一季是一個出色的季度，在巴塞隆納世界行動大會上推出了我們的統一支付平台。該平台透過輕鬆地將支付卡、禮品卡、積分和優惠券整合到單一行動錢包和購物應用程式中，為消費者提供無縫的購物體驗，從而增強支付安全性並降低零售商的成本。該解決方案的引人注目之處在於，它可以安全地轉換和管理數位價值，使消費者能夠在單筆交易中使用信用、積分和優惠券進行支付，並以這種方式改變他們的購物和支付方式。透過使用標記化，用臨時資料取代關鍵帳戶訊息，可以降低存檔卡詐欺的風險。正如您所看到的，我們已經推出了一個全面的平台，我們對此感到非常興奮，我們將在全年分享更新。

In closing, we are making good progress across all of our businesses, and our acquisitions continue to execute to our expectations. We also have exciting programs that allow us to leverage our expertise in memory and signaling while expanding our security offerings into consumer-facing and consumer-driven interactions. The programs we have in development are poised for growth in the future, while today we focus on executing to plan.

最後，我們的所有業務都取得了良好的進展，我們的收購也繼續按照我們的預期進行。我們還擁有令人興奮的計劃，使我們能夠利用我們在記憶體和訊號發送方面的專業知識，同時將我們的安全產品擴展到面向消費者和消費者驅動的互動。我們正在開發的計劃預計將在未來成長，而今天我們專注於執行計劃。

With that, I'll turn the call to Rahul to walk everyone through the quarterly financial results. Rahul?

接下來，我將致電拉胡爾，向大家介紹季度財務表現。拉胡爾？

Thanks, Ron. Before I go through our financial results, I'd like to remind everyone that for this call and for internal assessment, we use non-GAAP or pro forma numbers to discuss our operating results and forward-looking projections. We believe these numbers are more indicative of our performances since they exclude certain discrete items, such as stock-based compensation, amortization, impairment and restructuring charges, as we believe that these expenses or charges are noncash or are not indicative of long-term performance. As noted earlier, the reconciliation to our GAAP financials is available in our press release and in our earnings presentation and posted on our IR website.

謝謝，羅恩。在介紹我們的財務表現之前，我想提醒大家，對於本次電話會議和內部評估，我們使用非公認會計準則或備考數字來討論我們的營運績效和前瞻性預測。我們認為這些數字更能反映我們的業績，因為它們排除了某些離散項目，例如基於股票的薪酬、攤銷、減值和重組費用，因為我們認為這些費用或費用是非現金或不代表長期業績。如前所述，我們的 GAAP 財務報表可在我們的新聞稿和收益簡報中找到，並發佈在我們的 IR 網站上。

And with that, I'd like to turn to our financial results for the quarter. Let me start with some highlights on Slide 6. Revenue grew very nicely 34% year-over-year, another proof point that our acquisitions continue to execute to our expectations. We delivered flat quarter-over-quarter revenue, which is positive considering our historically seasonal decrease in the first quarter. We continue to leverage our high margin historic businesses to fuel growth in adjacent areas, where we have strong technical and market expertise with a focus on memory and security. We have a solid quarter, and our Q1 revenue and EPS performance shows the continued execution on our key initiatives. We also continue to make progress delivering profitable growth. While we achieved another quarter of disciplined cost management without sacrificing investment in our growth initiatives, we delivered pro forma EPS on the high end of our guidance.

接下來，我想談談我們本季的財務表現。讓我從幻燈片 6 上的一些亮點開始。收入同比增長 34%，這是我們的收購繼續按照我們的預期執行的另一個證據。我們的收入環比持平，考慮到我們第一季的歷史季節性下降，這是積極的。我們繼續利用我們的高利潤歷史業務來推動鄰近領域的成長，我們在這些領域擁有強大的技術和市場專業知識，並專注於記憶體和安全性。我們有一個穩定的季度，我們第一季的營收和每股盈餘表現顯示我們對關鍵措施的持續執行。我們也持續取得進展，實現獲利成長。雖然我們在不犧牲成長計畫投資的情況下又實現了一個季度嚴格的成本管理，但我們的預期每股盈餘仍達到了指導的上限。

Let me talk you through some of the revenue details on Slide 7. Revenue for the first quarter was $97.4 million at the high end of guidance we provided of $93 million to $98 million. Our strong revenue performance was due to strength in our licensing program, execution by our newly acquired businesses and partly as a result of an existing partner choosing to accelerate payment into the last day of the quarter that we had anticipated to come in Q2.

讓我向您介紹幻燈片 7 上的一些收入詳細資訊。第一季的收入為 9740 萬美元，按照我們提供的 9300 萬美元至 9800 萬美元的指導上限。我們強勁的營收表現歸功於我們的授權計畫的實力、新收購業務的執行力，部分原因是現有合作夥伴選擇將付款加速到我們預計在第二季到來的季度最後一天。

Going into additional detail, our memory and interface revenue was $70.6 million, security was $23.2 million and our lighting and display technology revenue was $3.6 million. Quarter-over-quarter, these numbers represent an increase of 3% for memory, a flat security business and the $2.1 million seasonal decline we anticipated in our lighting business due to timing of royalty payments. Year-over-year, MID revenue grew 32% and our Security Division grew by 65%. The increase in revenue from our Memory and Security Divisions was driven by our continued execution on our acquisitions and our strong licensing program.

更詳細地說，我們的記憶體和介面收入為 7,060 萬美元，安全性收入為 2,320 萬美元，照明和顯示技術收入為 360 萬美元。與上一季相比，這些數字代表記憶體、安全業務成長 3%，以及我們預計照明業務因特許權使用費支付時間而出現 210 萬美元的季節性下降。與去年同期相比，MID 收入成長了 32%，我們的安全部門成長了 65%。記憶體和安全部門收入的成長得益於我們持續執行收購和強大的授權計劃。

As we look to 2017, we remain on track to meet our internal revenue targets for each of our acquisitions.

展望 2017 年，我們仍有望實現每次收購的內部收入目標。

Now let me walk you through our pro forma income statement on Slide 8. Along with our solid revenue performance in Q1, we continue to actively manage our expenses. Cost of revenue plus operating expenses, or what we refer to as total operating expenses, for the quarter came in at $66.8 million, at the low end of our expected range, without compromising our ability to invest in programs that we expect to drive long-term growth. We ended the quarter with headcount of 784, roughly flat with 767 in the previous quarter, and up from 626 a year ago. Again, the increase in headcount is related to the new employees we welcomed to Rambus through our acquisitions in 2016 to support our long-term growth.

現在，讓我帶您瀏覽幻燈片 8 上的預計損益表。除了第一季穩健的收入表現外，我們還將繼續積極管理我們的支出。本季的收入成本加上營運費用，或我們所說的總營運費用，為 6,680 萬美元，處於我們預期範圍的低端，但不影響我們投資於我們期望長期推動的項目的能力。期限成長。本季結束時，我們的員工人數為 784 人，與上一季的 767 人大致持平，高於一年前的 626 人。同樣，員工人數的增加與我們透過 2016 年的收購歡迎新員工加入 Rambus 有關，以支持我們的長期成長。

Revenue and operating expenses led to operating income of $30.6 million, again at the high end of our guidance of $23 million to $31 million and an increase of $0.5 million quarter-over-quarter.

收入和營運支出導致營運收入達到 3,060 萬美元，再次達到我們指導的 2,300 萬美元至 3,100 萬美元的上限，並且比上一季增加了 50 萬美元。

After adjusting for noncash interest expense on our convertible debt, pro forma interest and other expenses for the first quarter were $1.3 million even with Q4. Using a flat rate of 35% for pro forma pretax income, net income for the quarter was $19.0 million or $0.17 a share as compared to $18.7 million last quarter.

在對可轉換債務的非現金利息支出進行調整後，即使第四季度，第一季的預計利息和其他支出也為 130 萬美元。以 35% 的統一稅率計算預計稅前收入，本季淨利潤為 1,900 萬美元，即每股 0.17 美元，而上季為 1,870 萬美元。

Now let me turn to the balance sheet details on Slide 9. Overall cash, defined as cash, cash equivalents and marketable securities, was $187.6 million, an increase of $15.4 million from the previous quarter. During the quarter, we generated approximately $18 million in cash from operations. First quarter CapEx was $1.9 million and depreciation was $3.4 million. In 2017, we expect to make additional capital investments to help fuel our growth, specifically at some of our international facilities and for our chip programs. As a result, I expect we'll have roughly $12 million of CapEx for the year with another $5 million-or-so in the second quarter. Correspondingly, I expect depreciation of roughly $3.5 million per quarter. As we expected, we saw solid operating cash flow in the first quarter and our ability to generate cash positions us nicely in the current industry environment. Overall, we believe we have a strong balance sheet with limited debt, and we expect to continue to generate strong cash from operations in the future.

現在讓我來看看投影片 9 上的資產負債表詳細資料。總現金（定義為現金、現金等價物和有價證券）為 1.876 億美元，比上一季增加 1540 萬美元。本季度，我們從營運中產生了約 1800 萬美元的現金。第一季資本支出為 190 萬美元，折舊為 340 萬美元。2017 年，我們預計將進行額外的資本投資，以幫助推動我們的成長，特別是在我們的一些國際設施和晶片項目方面。因此，我預計今年我們將有大約 1200 萬美元的資本支出，第二季還會有 500 萬美元左右的資本支出。相應地，我預計每季折舊約為 350 萬美元。正如我們預期的那樣，我們在第一季看到了穩健的營運現金流，並且我們在當前的行業環境中產生現金的能力很好。總體而言，我們相信我們擁有強勁的資產負債表和有限的債務，我們預計未來將繼續從營運中產生強勁的現金。

Now let me turn to our guidance for the second quarter on Slide 10. As a reminder, our forward-looking guidance reflects our best estimates at this point of time and our actual results could differ materially from what I'm about to review. Also, given that a substantial portion of our revenue is related to licensing agreements, we don't exhibit the same seasonality as other semiconductor businesses that have a larger mix of product revenue.

現在讓我談談幻燈片 10 上的第二季指引。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即將審查的結果有重大差異。此外，鑑於我們收入的很大一部分與授權協議有關，我們的季節性與產品收入組合較大的其他半導體企業不同。

As a rule of thumb to use as you model our quarters, looking back over the last several years, on average, we find Q1 down 2% from Q4, Q2 down another 5% from Q1, Q3 up 5% on Q2 and then Q4 up 2% over Q3. We expect revenue in the second quarter between $90 million and $96 million, which represents our typical seasonality. As I mentioned earlier, our guidance was impacted as a result of an existing partner choosing to accelerate payments into Q1 we had anticipated in Q2. We expect Q2 non-GAAP total operating expenses, which includes COGS to be between $67 million and $71 million. Over the course of the year, we expect total operating expenses to stay roughly flat, as a reduction in our functional group operating expenses will be offset by higher COGS related to our expected revenue growth.

作為我們的季度建模時所使用的經驗法則，回顧過去幾年，平均而言，我們發現第一季比第四季下降2%，第二季比第一季又下降5%，第三季度比第二季成長5%，然後第四季較第三季成長 2%。我們預計第二季的營收將在 9,000 萬美元至 9,600 萬美元之間，這代表了我們的典型季節性。正如我之前提到的，我們的指導受到了影響，因為現有合作夥伴選擇將我們預計在第二季的第一季付款加速。我們預計第二季非 GAAP 總營運支出（包括銷貨成本）將在 6,700 萬美元至 7,100 萬美元之間。在這一年中，我們預計總營運費用將大致保持不變，因為我們的職能部門營運費用的減少將被與我們預期收入成長相關的更高的銷貨成本所抵銷。

Non-GAAP operating income for the second quarter is expected to be between $19 million and $29 million. We expect roughly $1 million in non-GAAP interest and other income and expense. And based on a 35% tax rate, we expect between $6 million and $10 million in taxes. We expect our Q2 share count to be roughly 115 million fully diluted shares outstanding, which includes roughly 1 million shares of dilution related to the $138 million convertible debt that we have due in the third quarter of 2018. This leads you to between $0.10 and $0.16 of non-GAAP earnings per share for the quarter.

第二季非公認會計準則營業收入預計在 1,900 萬美元至 2,900 萬美元之間。我們預計非 GAAP 利息及其他收入和支出約為 100 萬美元。根據 35% 的稅率，我們預計稅收將在 600 萬至 1000 萬美元之間。我們預計第二季的完全稀釋流通股數約為 1.15 億股，其中包括約 100 萬股與 2018 年第三季到期的 1.38 億美元可轉換債務相關的稀釋股。這導致本季非 GAAP 每股收益在 0.10 美元到 0.16 美元之間。

Looking ahead to the remainder of 2017, we're very focused on ramping our acquisitions that they continue to deliver to our expectations as well as maintaining our long-term focus on profitable growth. While we will no longer be issuing annual guidance, as we look to forecast from our sell-side analysts, we continue to be comfortable with their revenue and earnings estimates in aggregate for the subsequent quarters and full year of 2017.

展望 2017 年剩餘時間，我們非常注重加大收購力度，確保它們繼續滿足我們的預期，並保持我們對獲利成長的長期關注。雖然我們將不再發布年度指引，但正如我們期待賣方分析師的預測那樣，我們仍然對他們對 2017 年後續季度和全年的總體收入和盈利預期感到滿意。

Let me finish with a summary on Slide 11. As I look in -- at the quarter, we are proud of the solid execution by our team and the progress we continue to make on our financial and business initiatives. Our strategy remains unchanged. We continue to execute well and are growing profitably through strategic acquisitions and execution on key programs. We have a large predictable high-margin revenue base, and we have a strong balance sheet to support our strategic initiatives.

最後讓我對投影片 11 進行總結。在我看來，在本季度，我們為我們團隊的紮實執行以及我們在財務和業務計劃上不斷取得的進展感到自豪。我們的策略保持不變。我們繼續表現良好，並透過策略性收購和關鍵項目的執行實現獲利成長。我們擁有龐大的可預測的高利潤收入基礎，並且擁有強大的資產負債表來支持我們的策略舉措。

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) And our first question comes from Suji Desilva with Roth Capital.

（操作員說明）我們的第一個問題來自 Roth Capital 的 Suji Desilva。

In terms of the second half, the visibility you have here, can you talk about what some of the key programs or products give you -- are that give you visibility into the statements about being comfortable with consensus?

就下半年而言，您在這裡所擁有的可見性，您能否談談一些關鍵計劃或產品為您提供了什麼 - 這是否使您能夠了解關於對共識感到滿意的聲明？

Yes. Sure, Suji. I'll give a high-level one and then Rahul could chime in and add some. I think it's the same discussion that we've been having for really the last several quarters. As you know, the base business, we're very lucky to have, is exceedingly profitable, really solid and we're continuing to close licensing agreements most notably in new spaces, which is great. We had Xilinx before. And now, we just did Western Digital. So that's still solid, but that base is not a fastly growing business. And the growth areas are really around the acquisitions that we had. So we're looking kind of half of the expected growth to be on the payment side and ticketing and the other half to be on the buffer chip and everything just keeps on tracking. Rahul, do you want to add anything?

是的。當然，蘇吉。我會給一個高級的，然後拉胡爾可以插話並添加一些。我認為這與我們過去幾個季度一直在進行的討論是一樣的。如您所知，我們非常幸運地擁有基礎業務，利潤豐厚，非常穩固，我們將繼續簽署許可協議，尤其是在新領域，這很棒。我們之前有 Xilinx。現在，我們剛剛做了西部數據。所以這仍然是穩固的，但這個基礎並不是一個快速成長的業務。成長領域實際上是圍繞著我們的收購進行的。因此，我們預期預期成長的一半來自支付和票務方面，另一半來自緩衝晶片，一切都在繼續進行。拉胡爾，你想補充什麼嗎？

No. I think what Ron said is exactly right, is that we have this very profitable foundation from that traditional licensing business. And with the recent announcements, particularly the ones that Ron mentioned, we've been able to expand upon that. The challenge that we have though is that our licensing agreements are scattered over time. So we're usually in a constant state of working with our customers for the next renewal cycle and that's what gives some of the fluidity in terms of the course of the year. So even though we don't have any other significant DRAM renewals up this year, the timing of these renewals and the new partnerships in our licensing business can be predictable to -- can be difficult to predict and that's really what gives us some variability over the course of the year. However, if you look at our engagements, because we've been able to broaden our engagements beyond just the traditional DRAM players as well as execute in terms of these acquisitions, that's what gives us comfort that we have what we need in place to hit our numbers for the rest of the year and beyond.

不。我認為羅恩所說的完全正確，我們從傳統的授權業務中擁有非常有利可圖的基礎。透過最近的公告，特別是羅恩提到的公告，我們已經能夠對此進行擴展。但我們面臨的挑戰是，我們的授權協議隨著時間的推移而分散。因此，我們通常會在下一個續約週期中與客戶保持持續合作，這就是為什麼在一年中提供一定流動性的原因。因此，儘管我們今年沒有任何其他重大的 DRAM 更新，但這些更新的時間以及我們授權業務中的新合作夥伴關係是可以預測的——可能很難預測，這確實給我們帶來了一些可變性這一年的歷程。然而，如果你看看我們的業務，因為我們已經能夠將我們的業務範圍擴大到傳統 DRAM 廠商之外，並執行這些收購，這讓我們感到安慰，因為我們擁有實現目標所需的東西。我們今年剩餘時間及以後的數據。

Okay, great. And then a question on the Western Digital Flash arrangement. I'm just trying to understand whether the Flash memory opportunity is incremental for you guys or not, on the one hand? The people who sell Flash also sell DRAM. You licensed across the DRAM side. And then on the other hand, it's obviously a different product category. So maybe you can help me understand the incremental market opportunity in Flash, if that's something you can articulate?

好的，太好了。然後是關於西部數據快閃記憶體安排的問題。一方面，我只是想了解快閃記憶體機會對你們來說是否是增量的？賣Flash的人也賣DRAM。您獲得了 DRAM 方面的許可。另一方面，這顯然是一個不同的產品類別。那麼也許您可以幫助我了解 Flash 的增量市場機會（如果這是您能闡明的內容的話）？

Yes. If you go back to the DRAM agreements that we have, they are broad-based agreements, not all on the security side, but on the memory side. So there is really little incremental benefit from the existing DRAM providers until the renewals, but that is 2019, 2022, and 2024 or something, so it's quite a ways away.

是的。如果你回顧我們現有的 DRAM 協議，你會發現它們是基礎廣泛的協議，並非全部涉及安全性方面，而是涉及記憶體方面。因此，在更新之前，現有 DRAM 供應商的增量收益實際上很少，但那是 2019 年、2022 年和 2024 年之類的，所以距離還很遠。

Okay, great. And then my last question is on the payment platform you showcased in Barcelona, I'm just wondering how the initial business model plays out in your financials as you start to gain traction with that payment platform initially and then over time?

好的，太好了。我的最後一個問題是關於您在巴塞隆納展示的支付平台，我只是想知道當您最初開始對該支付平台產生吸引力，然後隨著時間的推移，最初的商業模式在您的財務中如何發揮作用？

Sure. So at a high level, just -- and to manage expectations, understand that the way these things roll out is you first do pilots. So we're working on pilots for the second half, then lead into tenders. So it's a little more lumpy, which then lead into licensing agreements. What is a little bit different about this platform as you move -- and we still partner with the banks, it's one part of the banks acquiring side of it that service the retail space. So as we go to market with this, the bigger retailers would be straight licensing just like we do today. The smaller players would be in a SaaS model. So it'd be more subscription based. So you'd look at it as incremental and we think this will be attractive over time, because it will show a more steady growth and be able to be more predictable long time as opposed to big licensing deals for millions and millions of dollars that come and go over time.

當然。因此，在高水準上，為了管理期望，要明白這些事情的推出方式是先進行試點。因此，我們正在下半年進行試點，然後進行招標。所以它有點不穩定，然後導致許可協議。當你移動時，這個平台有一點不同——我們仍然與銀行合作，它是銀行收購方面的一部分，為零售領域提供服務。因此，當我們將此產品推向市場時，較大的零售商將像我們今天一樣直接獲得許可。較小的參與者將採用 SaaS 模式。所以它會更多地基於訂閱。因此，您會將其視為增量，我們認為隨著時間的推移，這將具有吸引力，因為與即將到來的數百萬美元的大型許可交易相比，它將顯示出更穩定的增長，並且能夠在較長時間內更加可預測。並隨著時間的推移。

And our next question comes from Matt Robison with Wunderlich.

我們的下一個問題來自 Matt Robison 和 Wunderlich。

Yes, I just wanted to get your perspective on announcement made today with Micron and Microsoft concerning their -- Authenta -- Micron's Authenta root-of-trust technology notice. Wondering if you're involved with that? Or how you see that industry development in terms of what you're trying to accomplish with root-of-trust?

是的，我只是想了解您對今天與美光和微軟發布的有關其 Authenta 的聲明的看法 - 美光的 Authenta 信任根技術通知。想知道您是否參與其中？或者您如何看待該行業的發展以及您試圖透過信任根實現的目標？

Yes. Matt, it's Ron. Thanks for asking the question and actually sending the e-mail. We hadn't seen it until you sent it. So no, that's not us. We're not involved with it, but we are extremely excited about this, because this is what we've been saying is a requirement for the industry for long term. And as you know, with our CryptoManager solution, it provisions things just like this. So we look at this as a great opportunity, we look at it as the industry is going exactly down the path that we wanted. It's new opportunities for DPA licensing technology, so it's super.

是的。馬特，是羅恩。感謝您提出問題並實際發送電子郵件。在你發送之前我們還沒有看到它。所以不，那不是我們。我們沒有參與其中，但我們對此感到非常興奮，因為這是我們一直所說的行業長期要求。如您所知，透過我們的 CryptoManager 解決方案，它可以提供類似這樣的內容。所以我們認為這是一個很好的機會，我們認為這個行業正在沿著我們想要的道路發展。這是 DPA 授權技術的新機遇，所以它非常好。

So there -- well, (inaudible) appears to be competitive, so do you see yourself participating with the other -- with their peers as they look to be competitive with this? Or do you see yourself also potentially upgrading this with DPA?

那麼，（聽不清楚）似乎很有競爭力，那麼您是否認為自己與其他人一起參與——與他們的同行一起參與，因為他們看起來對此有競爭力？或者您認為自己也有可能使用 DPA 進行升級？

From the release and what I saw, I wouldn't say it was competitive. I don't really know the details of it. But I didn't get the feeling it was competitive. It was more complementary. If you think about our offerings and what we've been describing really for the last 3 years, really at least solid 2 when we talked about CryptoManager is that the value in things shifts to provisioning that security is needed, that hardware-based security, hardware root-of-trust. In fact, I think that may have even been our word that the industry has been picking up on -- seems to be translating. Is the only way to guarantee right that you can really manage and securely manage keys. So as a cryptography company, which is little more specific than just general security, we think that this is perfect. So I don't see it as at all as anything other than exactly complementary. And hopefully, it's going to drive other industries and segments to look at this. So we're hoping that this is going to gain traction, and we are seeing a lot of general interest in our CryptoManager solution for IoT.

從發布和我所看到的情況來看，我不會說它具有競爭力。我實在不知道它的細節。但我沒有感覺到它有競爭力。這是更具互補性的。如果您考慮我們的產品以及我們在過去3 年中所描述的內容，那麼當我們談論CryptoManager 時，至少確實可靠的是，事物的價值已轉移到提供所需的安全性、基於硬體的安全性，硬體信任根。事實上，我認為這甚至可能是我們的話，業界一直在接受——似乎正在翻譯。是保證您能夠真正正確管理並安全管理金鑰的唯一方法。因此，作為一家密碼學公司，它的業務比一般安全性更具體，我們認為這是完美的。所以我認為它除了完全互補之外根本沒有其他意義。希望這將推動其他行業和領域關注這一點。因此，我們希望這能夠獲得關注，並且我們看到人們對我們的 IoT CryptoManager 解決方案表現出了濃厚的興趣。

And our next question comes from Gary Mobley with Benchmark.

我們的下一個問題來自 Benchmark 的 Gary Mobley。

Realizing that 2 pillars of growth for revenue growth that is relate to the DDR4 buffer chip and subsequent product cycles and as well the SCS side of the business for security. I wanted to ask where you guys stand and get an update where you guys stand with respect to the DDR4 buffer chip and getting traction with yearly customer as we look into the second half of the year?

認識到收入成長的兩個成長支柱與 DDR4 緩衝晶片和後續產品週期以及安全業務的 SCS 方面相關。我想問一下你們的立場，並了解你們在 DDR4 緩衝晶片方面的最新立場，以及在我們展望下半年時吸引年度客戶的立場？

So today, I think, we've spoken about this before, we're shipping in Haswell and Broadwell and we designed in for Skylake and introducing parts for Ice Lake. I think we're in very good position and feel comfortable also, particularly on DDR5. So that's kind of the status. There's really been no update from where it's been before. We have -- we're still learning the course of the seasonality and more of the details about the business, because it's our new entrant. But we still felt confident that we have more traction in the second half than we do in the first half and things are just kind of moving along.

所以今天，我想，我們之前已經討論過這個問題，我們在 Haswell 和 Broadwell 中發貨，我們為 Skylake 進行了設計，並推出了 Ice Lake 的部件。我認為我們處於非常有利的位置並且感覺很舒服，特別是在 DDR5 方面。這就是這樣的狀態。與之前相比，確實沒有任何更新。我們仍在了解季節性的過程以及有關業務的更多細節，因為它是我們的新進入者。但我們仍然有信心，我們下半場的牽引力比上半場更大，而且事情正在向前發展。

Okay. Correct me if I'm wrong, but I believe you have license renewals coming up with a couple of your SoC licensees, specifically NVIDIA, MediaTek license renewals this year that is, can you confirm that? And do you see any speed bumps associated with those renewals?

好的。如果我錯了，請糾正我，但我相信你們的幾個 SoC 被許可方，特別是 NVIDIA、聯發科今年都進行了許可證續訂，您能證實這一點嗎？您是否看到與這些續訂相關的任何減速？

Yes. I think it was in press releases. So I don't know the specific timing of those, but we have them periodically throughout the year. This was what Rahul was referencing in one of the previous questions. We don't have any of the big renewals with the DRAM manufacturers, but we have new business that we're working on and renewals throughout this year and next. It's kind of the typical cycle.

是的。我認為這是在新聞稿中。所以我不知道這些的具體時間，但我們全年定期進行。這就是拉胡爾在之前的問題之一中提到的內容。我們沒有與 DRAM 製造商進行任何重大續約，但我們正在進行新業務，並在今年和明年進行續約。這是典型的循環。

Okay. And Rahul, you mentioned -- well, I guess, I can see from the balance sheet that you had about a $5 million sequential increase in deferred revenue and I know the total dollar amount is relatively small compared to your quarterly revenue, but I think your deferred revenues are at an all-time high. Could you speak to what's your driving that in terms of customer engagements and whatnot?

好的。拉胡爾，你提到——嗯，我想，我可以從資產負債表中看到，你的遞延收入連續增加了大約500 萬美元，我知道與你的季度收入相比，總金額相對較小，但我認為您的遞延收入處於歷史最高水平。您能談談您在客戶參與度等方面的推動力嗎？

Gary, it really is just the timing of payments and the contract that work in terms of our customer basis. Because as you know, in different parts of our businesses, we structure those contracts differently in terms of how they come in. So in some cases, we'll have customers that pay us upfront and then we'll recognize revenue ratably over a period of time or the period of the contract. So it's interesting because I've looked at multiple companies and tried to build the intuition on how deferred revenue works and it's just always been a challenge for me based on the timing of cycles. But as you said earlier, I think the variance quarter-over-quarter wasn't necessarily material, it was 300,000 more I believe, but it's really again just related to the timing of agreements and contracts.

加里，這實際上只是付款時間和合約對我們的客戶基礎起作用。因為如您所知，在我們業務的不同部分，我們以不同的方式建立這些合約。因此，在某些情況下，我們會有客戶預先向我們付款，然後我們將在一段時間內或合約期間內按比例確認收入。所以這很有趣，因為我研究了多家公司，並試圖建立關於遞延收入如何運作的直覺，而基於週期的時間安排對我來說一直是一個挑戰。但正如您之前所說，我認為季度環比差異不一定很大，我相信多了 300,000 個，但這實際上又與協議和合約的時間表有關。

Our next question comes from Paul Coster with JPMorgan.

我們的下一個問題來自摩根大通的保羅·科斯特。

First off, can you just confirm that the guidance that you've issued for the year doesn't really include any contribution from the emerging solutions? And then can you give us quick update on your thoughts around realizing revenue from those initiatives, especially those related to data center and memory?

首先，您能否確認您今年發布的指導意見實際上並未包含新興解決方案的任何貢獻？那麼您能否向我們快速介紹一下您對從這些計劃（尤其是與資料中心和記憶體相關的計劃）中實現收入的想法？

Sure, Paul. Why don't I take the first part of that question and I'll ask Ron to comment on the second. So we do invest in long-term growth opportunities and most of those investments are actually in that emerging solutions group. Now what I look at is for the broad number of programs that we invest in, is do we have partners who are investing alongside with us? Now in many cases (inaudible), we still have an engineering team and then -- Paul, you still -- okay, in many, what this means is that we'll have an engineering team and then the partner will have an engineering team as well and we're working together. In other cases, what it means is that we'll have an engineering team and then sometimes we may get some NRE from some of our partners for the work that we're doing. So not every initiative is the same in terms of the financials, but there is a small amount of NRE that we do get as part of these initiatives. And also from me, that's what gives me faith and confidence that we are working with our industry in terms of these long-term growth initiatives, and we actually meet our investments based on what our partners are doing as well. So there is some NRE that's associated with some of these activities in ESP, but truthfully there is also NRE in our other businesses as well. And it's just a validation that our customers in the industry are working alongside with us in terms of where we're headed. I'll ask Ron to answer your -- the second half of your question.

當然，保羅。為什麼我不回答這個問題的第一部分，我會請羅恩對第二部分發表評論。因此，我們確實投資於長期成長機會，其中大部分投資實際上是在新興解決方案領域。現在我關注的是我們投資的大量項目，我們是否有與我們一起投資的合作夥伴？現在在很多情況下（聽不清楚），我們仍然有一個工程團隊，然後- 保羅，你仍然- 好吧，在很多情況下，這意味著我們將擁有一個工程團隊，然後合作夥伴將擁有一個工程團隊我們也正在共同努力。在其他情況下，這意味著我們將擁有一個工程團隊，有時我們可能會從一些合作夥伴那裡獲得一些 NRE 來完成我們正在做的工作。因此，並非每個計劃的財務狀況都是相同的，但作為這些計劃的一部分，我們確實獲得了少量的 NRE。對我來說，這也給了我信心和信心，我們正在與我們的行業合作實施這些長期增長計劃，並且我們實際上也根據我們的合作夥伴所做的事情來滿足我們的投資。因此，有一些 NRE 與 ESP 中的某些活動相關，但事實上，我們的其他業務中也存在 NRE。這只是證明我們的行業客戶正在與我們共同努力，推動我們的發展方向。我會請羅恩回答你問題的後半部。

Can you repeat the second half of the question, again?

你能再重複問題的後半部嗎？

So Ron, I'm just wondering if in addition to -- well, it's good to hear that there is some NRE revenue coming through. I don't mention it's particularly material, but, of course, we're all very interested in potential payback from these really big R&D initiatives and what's the latest and what's your view of the timeline to realizing those paybacks?

所以，羅恩，我只是想知道，除了——嗯，很高興聽到有一些 NRE 收入。我並沒有提到它特別重要，但是，當然，我們都對這些真正大型研發計劃的潛在回報非常感興趣，最新情況是什麼？您對實現這些回報的時間表有何看法？

So each of them is different. So it depends on how broadly if there is some specific one. With respect to Microsoft, this is obviously a highly speculative program. They are investing heavily in doing it. And I think that the earliest we would see something is around 2020. Now we plan on building this. So what we said in the prepared remarks, I think, is the next phase is prototyping. We've done some work already taking it down in temperature, so we're kind of going through the plan. Laura and team are executing exactly on to plan, so it's very exciting. But it's a high-risk program. So 2020 would be it. Now what's so great about this is Microsoft is just -- I couldn't say a super partner. I went to visit some of them in Redmond and showed all the things that Rambus are doing there. They're very influential. They're really thinking through strategically where the data center is going to go, but we like it because we're co-investing, as you say, as Rahul said, and really partnering with them on this. And we're hoping that it's going to turn out to be a product. But obviously, it's highly speculative. It could be game changing or it could run into problems and be nothing. Was there any other of the programs that you...?

所以他們每個人都是不同的。因此，這取決於是否有特定的範圍。對微軟來說，這顯然是一個高度投機的計畫。他們為此投入了大量資金。我認為我們最早會在 2020 年左右看到一些成果。現在我們計劃建造這個。因此，我認為我們在準備好的發言中所說的是下一階段是原型設計。我們已經做了一些降低溫度的工作，所以我們正在執行這個計劃。勞拉和團隊正在完全按照計劃執行，所以這非常令人興奮。但這是一個高風險的計劃。所以2020年就這樣了。現在最棒的是微軟只是──我不能說是一個超級合作夥伴。我去雷德蒙德拜訪了他們中的一些人，並展示了 Rambus 在那裡所做的所有事情。他們非常有影響力。他們確實在策略上思考資料中心的發展方向，但我們喜歡它，因為我們正在共同投資，正如你所說，正如拉胡爾所說，並在這方面與他們真正合作。我們希望它能成為一種產品。但顯然，這是高度推測性的。它可能會改變遊戲規則，也可能會遇到問題卻一事無成。還有其他程式嗎？

Yes. So perhaps you can give us an upgrade -- update on the Intel initiative as well?

是的。那麼也許您可以給我們一個升級——英特爾計劃的更新？

So the Intel initiative, I think, is more just collaboration on DDR5. As we've said, we think we're in a very good position on that. Again, Intel is a great partner. They're working very closely with us. We're working very closely with them. We're expanding our focus. We're on track for all of the devices that we're trying to tape out and take to market. So it's going well. Was there another one?

因此，我認為英特爾的舉措更多的是在 DDR5 上進行合作。正如我們所說，我們認為我們在這方面處於非常有利的位置。再次強調，英特爾是個很好的合作夥伴。他們正在與我們密切合作。我們正在與他們密切合作。我們正在擴大我們的關注範圍。我們正在努力將所有設備流片並推向市場。所以進展順利。還有另外一個嗎？

And resistive RAM, but I mean there's no -- at least all seem pretty...

還有電阻式 RAM，但我的意思是沒有——至少看起來都很漂亮......

DDR5 is the same time frame, I think it's 2019 is where it starts shipments. It could be a little early. It could be a little later and then it ramps from there. The importance of being in this has been just by way of history. If you recall, Inphi led in DDR3 and got the lion's share of it. They had an issue and missed on part of DDR4, so that put them behind. Obviously, we entered the market much after the DDR4 had already initiated, because we were thinking about it more as a long-term play as we saw the attach rates go up. By combining the teams, I think we're in a position to gain share on DDR4. But to win big in this and achieve our long-term objectives is we need to be first with DDR5. So the game and the revenue for 2019, 2020, 2021 is how good we execute this year and next on DDR5, even though the revenue is not there. It's just the nature of the beast. Now the good news is, as we power into that, we don't need to add expenses, as Rahul and I have said for the last couple of years -- well, (inaudible) last couple of years for a shorter period of time as you came on. So this should -- is where you see the real leverage and I felt it and Rahul has said many times, this is a good margin business. This is not the struggling 30% gross margin chiclet-type business. It's solid. So we're still optimistic, cautiously focused on execution, but it's the path to lead to significantly higher stock prices over the next couple of years, and that's the good news. We'll know hopefully earlier that we're in the pole position.

DDR5也是同樣的時間範圍，我認為2019年是它開始出貨的時候。可能有點早了。可能會晚一點，然後從那裡開始斜坡。參與其中的重要性已從歷史上可見一斑。如果你還記得的話，Inphi 在 DDR3 領域處於領先地位，並獲得了最大份額。他們遇到了問題，錯過了部分 DDR4，因此落後了。顯然，我們在 DDR4 啟動之後很長時間才進入市場，因為我們看到附加率不斷上升，更多地將其視為長期投資。透過合併團隊，我認為我們能夠獲得 DDR4 市場份額。但要在這方面取得重大勝利並實現我們的長期目標，我們需要先採用 DDR5。因此，2019 年、2020 年、2021 年的遊戲和收入是我們今年和明年在 DDR5 上執行得有多好，儘管收入不存在。這只是野獸的本性。現在好消息是，隨著我們的努力，我們不需要增加開支，正如拉胡爾和我在過去幾年中所說的那樣——嗯，（聽不清楚）過去幾年的時間較短當你來的時候。所以這應該是你看到真正槓桿的地方，我感覺到了，拉胡爾已經說過很多次了，這是一個很好的利潤業務。這不是毛利率為 30% 的苦苦掙扎的巧克力式業務。它很堅固。因此，我們仍然樂觀，謹慎地專注於執行，但這是導致未來幾年股價大幅上漲的途徑，這是個好消息。希望我們能更早知道我們處於領先位置。

Okay. And then finally resistive RAM.

好的。最後是電阻式 RAM。

Resistive RAM, we continue to partnership in China. We have increased our sales team in China. We're gaining a lot of interest by a variety of groups. There's activity, but I can't announce anything. I think we've spoken about a variety of different test chips -- they're out. They're functioning. We're looking through the right segment to go in. The focus initially is not on standalone chips, but more on embedded solutions, things like smart cards, where performance matters and cost matters. And so we think it could be getting primed for that. We can see long-term embedded applications into automotive and IoT. But at this point, the technology, I don't believe, really makes it from a temperature spectrum. But as we keep working with our fab partner there, we'll keep tweaking the process with them, tweaking the design and hopefully be able to look at this technology being broadly licensed. If not us doing some selective designs ourself.

電阻式RAM，我們繼續在中國的合作關係。我們增加了在中國的銷售團隊。我們引起了各種團體的極大興趣。有活動，但我不能宣布任何事情。我想我們已經討論過各種不同的測試晶片——它們已經上市了。他們正在運作。我們正在尋找合適的細分市場。最初的重點不是獨立晶片，而是更多的嵌入式解決方案，例如智慧卡，其中性能很重要，成本也很重要。所以我們認為它可能已經為此做好了準備。我們可以看到汽車和物聯網的長期嵌入式應用。但在這一點上，我不相信這項技術真的能夠從溫度範圍內實現。但隨著我們繼續與那裡的晶圓廠合作夥伴合作，我們將繼續與他們一起調整流程、調整設計，並希望看到這項技術得到廣泛許可。如果不是我們自己做一些選擇性設計。

Okay. I've got one last question for Rahul. Sorry about all these questions. You talked of strength in licensing, can you give us some sense of what the organic sort of year-on-year comps look like, to the extent you're able to do so?

好的。我有最後一個問題要問拉胡爾。對於所有這些問題，我深表歉意。您談到了授權方面的實力，您能否讓我們了解一下有機的同比比較是什麼樣子，在您能夠做到的範圍內？

Sure. Sure, Paul, and never a bother. Happy to have as much of a dialogue as you'd like. When I look at the organic versus inorganic and we've tried to give you all a little more information here. I think it's on Slide 16 of our earnings deck. What you see is that, we have a base business, where that base business is roughly kind of $290 million to $300 million. And that base business I consider is made up of our licensing business, our cores and our lighting business. And what we've seen is, if you look at our numbers for 2016 and if you look at the estimates for 2017 is we expect the growth off that base business to come from our recent acquisitions and the other leading-edge programs in the long term, many of the ones that you and Ron were just talking about. So as Ron and I said earlier, those acquisitions are tracking to our plan and we're seeing our company's growth. And honestly, I look at that financial performance that we printed last quarter, this quarter and the guidance that we've given for Q2 is a validation of that M&A strategy. So one of the benefits we have then is we're leveraging this high-margin historic base business that fuel growth in adjacent areas, where we have that strong technical and market expertise, particularly in these focus areas of memory and security.

當然。當然，保羅，而且從來不麻煩。很高興能進行盡可能多的對話。當我研究有機與無機時，我們試圖在這裡為大家提供更多資訊。我想它就在我們收益報告的第 16 張投影片上。你看到的是，我們有一個基礎業務，這個基礎業務大約是 2.9 億到 3 億美元。我認為這個基礎業務由我們的授權業務、我們的核心業務和我們的照明業務組成。我們看到的是，如果你看看我們 2016 年的數據，如果你看看 2017 年的估計，我們預計基礎業務的增長將來自我們最近的收購和長期的其他領先項目術語，其中許多是你和榮恩剛才談論的。正如羅恩和我之前所說，這些收購正在按照我們的計劃進行，我們正在看到我們公司的成長。老實說，我查看了我們上個季度和本季公佈的財務業績，以及我們為第二季度提供的指導，這是對併購策略的驗證。因此，我們獲得的好處之一是我們正在利用這一高利潤的歷史基礎業務來推動鄰近領域的成長，我們在這些領域擁有強大的技術和市場專業知識，特別是在記憶體和安全這些重點領域。

Our next question comes from Atif Malik with Citigroup.

我們的下一個問題來自花旗集團的 Atif Malik。

Ron, we saw quite a few announcements with Samsung and Microsoft and HBM, can you just talk about a little bit top level what's going on in data centers and networking, which is kind of driving accelerated kind of partnerships with these guys?

Ron，我們看到了與三星、微軟和 HBM 的許多公告，您能談談資料中心和網路方面正在發生的一些頂級事情嗎？這在某種程度上推動了與這些公司加速建立合作關係？

Yes, sure. There's a few different things. Most of the focus is on our expanded portfolio of both technologies and technology nodes and data rates on the SerDes. So we introduced our 56 gig, which has gone spectacularly well. We've had a lot of customer interest in this. As you know, there is not a lot of providers of this technology, that is why it was important to do kind of classic consolidation with the Semtech-Snowbush team. We're working together, I'd say, rather well. By expanding the number of designs, the number of designers, combining the revenue, we're just kind of hitting our milestones. So in general, as you look at going in 100 meg increments, 56 gig is the natural node. But we're also selling, as we referenced in this, the 28 gig in a variety of different -- or 25 gig in special depending on how they're actually using it. So we're really trying to do off-the-shelf designs using existing product. We've gotten them in a variety of places, I think on the last call I mentioned in China. So we're even getting traction there and then really expanding and trying to get all of the new 56 gig designs with the FinFET technology which is really challenging to do.

是的，當然。有一些不同的事情。主要關注點是我們擴展的技術和技術節點以及 SerDes 上的資料速率的產品組合。所以我們推出了 56 場演出，進展得非常順利。我們有很多客戶對此感興趣。如您所知，這項技術的提供者並不多，這就是為什麼與 Semtech-Snowbush 團隊進行經典整合非常重要。我想說，我們合作得很好。透過擴大設計數量、設計師數量，結合收入，我們正在達到我們的里程碑。因此，一般來說，當您考慮以 100 兆增量進行時，56 兆是自然節點。但正如我們在本文中提到的，我們也銷售各種不同的 28 演出，或特殊的 25 演出，具體取決於他們實際使用的方式。因此，我們確實嘗試使用現有產品進行現成的設計。我們在很多地方都得到了它們，我想是在我上次提到的中國電話會議上。因此，我們甚至在那裡獲得了關注，然後真正擴展並嘗試使用 FinFET 技術獲得所有新的 56 gig 設計，這確實具有挑戰性。

Thanks. And for Rahul, thanks a lot for providing the seasonality comments on 4 quarters, that helps out on the modeling. I'm just trying to better understand what drives the seasonality down in Q2. Is this in the memory business? Or is it in the security business? And which segment drives the seasonal downtick in Q2?

謝謝。對於 Rahul，非常感謝您提供 4 個季度的季節性評論，這對建模很有幫助。我只是想更了解是什麼導致第二季季節性下降。這是記憶體產業嗎？還是從事安全業務？哪個細分市場推動了第二季的季節性下滑？

What really drives it dramatically, is just the timing of the license agreements and the renewals? So I would say just from a segment perspective it's pretty much aligned with the relative revenue contribution of the segments. But what happens is that, just in terms of the historical timing on when have these contracts have been signed, many of them end up being signed in the Q2 time frame. And honestly, I think Ron and I and the rest of the management team are very clear on this that we have absolutely no desire whatsoever to sacrifice any long-term value for our company in order to meet a short-term quarterly revenue target. And that's why you see a slightly wider range in terms of Q2. But really that timing of those agreements is really what drives that variability. And I think, largely, you'll see it on the memory side, but you'll see some of it on the security side as well.

真正推動它戲劇性發展的只是授權協議和續約的時間？因此，我想說，僅從細分市場的角度來看，它與細分市場的相對收入貢獻非常一致。但實際情況是，就這些合約簽署的歷史時間而言，其中許多合約最終是在第二季簽署的。老實說，我認為羅恩和我以及管理團隊的其他成員都非常清楚這一點，我們絕對不想為了實現短期季度收入目標而犧牲公司的任何長期價值。這就是為什麼你會看到第二季的範圍稍寬。但事實上，這些協議的時機確實是導致這種變化的原因。我認為，很大程度上，您會在內存方面看到它，但您也會在安全方面看到其中一些。

Okay. One last question on capital allocation. In terms of the use of cash from here, M&A is still the top priority or share repurchases is up with M&A, can you just help us out?

好的。最後一個問題是關於資本配置。從這裡現金的使用來看，併購仍然是重中之重，或者說，併購之後就是股份回購，你能幫我們解決嗎？

So what I'll tell you from a use of cash perspective is that we absolutely explore all different kinds of opportunities. We're exploring all sorts of different types of M&A right now. But I'd tell you there's nothing eminent. We do see a lot of conversations and opportunities with all the industry consolidations that's on the table and that means not just companies, but also parts of companies may come -- become available. And so we're always looking for opportunities that leverage our existing core markets or technology. Now with that said, as you mentioned, we have executed on buybacks in the past and would consider one in the future. So in the recent past, we viewed that capital to fuel the M&A strategy. But I do expect we'll continue to generate strong cash flows and it positions us well, because we'll use our existing operating cash flow or (inaudible) either for incremental M&A or return it to shareholders in the form of a buyback. But honestly, what we look at, Atif, is just the most effective and efficient ways to deliver shareholder value back to our investors.

因此，我從現金使用的角度告訴您，我們絕對會探索所有不同類型的機會。我們現在正在探索各種不同類型的併購。但我要告訴你，沒有什麼了不起的。我們確實看到了很多關於所有行業整合的對話和機會，這意味著不僅是公司，而且公司的一部分可能會出現——變得可用。因此，我們一直在尋找利用我們現有核心市場或技術的機會。話雖如此，正如您所提到的，我們過去已經執行過回購，並且將來會考慮進行回購。因此，在最近，我們認為這些資本可以推動併購策略。但我確實預計我們將繼續產生強勁的現金流，這使我們處於有利地位，因為我們將使用現有的營運現金流或（聽不清楚）進行增量併購或以回購的形式將其返還給股東。但老實說，Atif，我們所關注的只是將股東價值回饋給我們的投資者的最有效和最高效的方式。

And I'm showing no further questions. I would now like to turn call back to Dr. Ron Black for any further remarks.

我沒有再提出任何問題。我現在想回電給羅恩·布萊克博士，以徵求進一步的意見。

Thank you, operator. As you can see, we are well aligned with the needs of industry and have the right programs in place to capitalize on the trends driving technology choices. Thank you for continued interest and time. Have a nice day.

謝謝你，接線生。正如您所看到的，我們很好地滿足了該行業的需求，並制定了正確的計劃來利用推動技術選擇的趨勢。感謝您持續的關注和時間。祝你今天過得愉快。

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program, and you may all disconnect. Everyone, have a great day.

女士們、先生們，感謝你們參加今天的會議。程式到此結束，大家可以斷開連線了。大家，祝你有美好的一天。