Rambus Inc (RMBS) 2017 Q2 法說會逐字稿

Welcome to the Rambus Second Quarter and Fiscal Year 2017 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the conference over to Rahul Mathur, Chief Financial Officer. You may begin your conference.

歡迎參加 Rambus 第二季和 2017 財政年度收益電話會議。（操作員說明）謹此提醒，本次電話會議正在錄音。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, Karen, and welcome to the Rambus Second Quarter 2017 Results Conference Call. I am Rahul Mathur, CFO; and on the call with me today is Dr. Ron Black, our President and CEO.

謝謝 Karen，歡迎參加 Rambus 2017 年第二季業績電話會議。我是財務長拉胡爾‧馬圖爾 (Rahul Mathur)；今天與我通話的是我們的總裁兼執行長 Ron Black 博士。

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 36458130 when you hear the prompt. In addition, we are simultaneously webcasting this call, and along with the audio, we are webcasting slides that we will reference during a portion 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.

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。您可以透過撥打免費電話並在聽到提示時輸入 ID 號碼 36458130 來收聽重播。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一部分中參考這些投影片。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 our financials, we're using both GAAP and non-GAAP pro forma financial presentations in both our press release and also on this call.

為了讓我們的財務狀況更加清晰，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。

Our discussion today will contain forward-looking statements regarding our financial guidance for future periods, including Q3 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, amongst other things. These statements are subject to risks and uncertainties that are discussed during this call and may be more fully described in the documents we file with the SEC, including our 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.

我們今天的討論將包含有關我們未來時期財務指導的前瞻性陳述，包括2017 年第三季前景、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我們服務的各個市場等等。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 these 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」頁面的「財務發布」下查看這些內容。

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. We delivered a strong second quarter, and I am pleased with the progress we are making across all of our businesses. We continue to build upon our positive momentum from the start of the year. From a financial perspective, we delivered revenues of $94.7 million, up 24% year-over-year, and our non-GAAP diluted net income per share was $0.14.

謝謝拉胡爾，大家下午好。我們的第二季業績強勁，我對我們所有業務所取得的進展感到高興。我們繼續鞏固年初以來的正面動能。從財務角度來看，我們實現營收 9,470 萬美元，年增 24%，非 GAAP 攤薄後每股淨利為 0.14 美元。

Our IP business remains strong with key renewals and new customers signed, and we continue to receive important ongoing validation from the market that our technologies are solving the important problems in the data center and Mobile Edge. In this quarter, we closed material customer and partnership agreements with notable names like Cybertrust, Synopsys, Google and Interac. We had a positive quarter in our Memory and Interface Division, with progress in our patent and technology licensing programs, signing key renewals and new agreements. I'm also pleased to share that we closed the company's largest high-speed interface technology agreement to date with a large semiconductor company.

我們的 IP 業務仍然強勁，關鍵續約和新客戶簽約，我們繼續從市場獲得重要的持續驗證，證明我們的技術正在解決資料中心和行動邊緣的重要問題。在本季度，我們與 Cyber​​trust、Synopsys、Google 和 Interac 等知名公司簽訂了重要的客戶和合作夥伴協議。我們的記憶體和介面部門在本季度取得了積極的進展，我們的專利和技術許可計劃取得了進展，簽署了關鍵續約和新協議。我還很高興地告訴大家，我們與一家大型半導體公司簽署了迄今為止該公司最大的高速介面技術協議。

Expanding on our Server DIMM chipset family, we announced the industry's first production, JEDEC-standard DDR4 Non-volatile Register Clock Driver or NVRCD. The NVRCD chip is sampling now and builds upon our existing high-speed chip and signaling expertise to enable nonvolatile server memory modules to combine the performance of DRAM with the persistence of storage-class memory, delivering high performance and reliability of data for next-generation enterprise and data center systems.

為了擴展我們的伺服器 DIMM 晶片組系列，我們推出了業界首款量產的 JEDEC 標準 DDR4 非揮發性暫存器時脈驅動器或 NVRCD。NVRCD 晶片現已提供樣品，它建立在我們現有的高速晶片和訊號專業知識的基礎上，使非揮發性伺服器記憶體模組能夠將DRAM 的性能與儲存級記憶體的持久性相結合，為下一代提供高效能和資料可靠性企業和資料中心系統。

For IP cores, we were pleased to partner with Samsung on the development of our 56 Gbps SerDes PHY. As we discussed on our previous call, the PHY is built on Samsung's cutting-edge 10-nanometer LPP FinFET process to bring power and performance-optimized interconnects to data center and networking.

對於 IP 核，我們很高興與三星合作開發 56 Gbps SerDes PHY。正如我們在先前的電話會議中所討論的，該 PHY 基於三星尖端的 10 奈米 LPP FinFET 製程構建，可為資料中心和網路帶來功耗和性能優化的互連。

In addition, we announced the availability of our silicon-proven PCI Express 4.0 SerDes PHY that has been prevalidated with PLDA's PCI Express controller and Avery Design's verification IP for a complete preverified PCI Express subsystem. The solution enables easy integration and offers high performance, power efficiency and flexibility for today's most challenging networking and data center applications.

此外，我們還宣布推出經過矽驗證的 PCI Express 4.0 SerDes PHY，該 PHY 已通過 PLDA 的 PCI Express 控制器和 Avery Design 的驗證 IP 進行了預先驗證，以實現完整的預先驗證的 PCI Express 子系統。該解決方案可輕鬆集成，並為當今最具挑戰性的網路和資料中心應用提供高效能、能源效率和靈活性。

Turning to our Security Division. We were pleased with the continued momentum in our mobile payments, ticketing and cryptography businesses. Having secured hundreds of billions of payment and ticketing transactions to date, these businesses have a strong foundation for continued market leadership. For payments, we teamed with Google and Interac to enable Android Pay in Canada. Interac Debit is one of the most popular payment methods in Canada, and our collaboration on the token service provider solution with Interac will allow millions of consumers to enjoy secure mobile payments using Android Pay in Canada.

轉向我們的安全部門。我們對行動支付、票務和加密業務的持續成長動能感到高興。迄今為止，這些企業已完成數千億筆支付和票務交易，為持續保持市場領先奠定了堅實的基礎。在支付方面，我們與 Google 和 Interac 合作，在加拿大啟用了 Android Pay。Interac Debit 是加拿大最受歡迎的支付方式之一，我們與 Interac 在令牌服務提供商解決方案上的合作將使數百萬消費者能夠在加拿大使用 Android Pay 享受安全的行動支付。

Our ticketing team continues to make good progress with the first public pilot of our HCE mobile ticketing solutions with Strathclyde Partnership for Transport, or SPT, Scotland's largest regional transport partnership.

我們的票務團隊在與蘇格蘭最大的區域交通合作夥伴斯特拉斯克萊德交通合作夥伴（SPT）合作的 HCE 行動票務解決方案的首次公共試點方面繼續取得良好進展。

For cryptography, we've expanded our ecosystem of security customers and partners to better meet demand and accelerate the adoption of our provisioning solutions with 2 key announcements: The first had Cybertrust, a subsidiary of SoftBank Technology Corp., procure our CryptoManager infrastructure and software to deliver secure key provisioning and security services for connected devices, spanning from enterprise multifunction printers to connected cars; the second announcement, our collaboration with Synopsys to deliver secure key provisioning for their DesignWare tRoot Hardware Secure Modules with root-of-trust. Both partnerships will leverage our CryptoManager infrastructure and software for key provisioning to enable the secure, remote life cycle management and updates of connected devices.

對於加密技術，我們透過兩個重要公告擴展了我們的安全客戶和合作夥伴生態系統，以更好地滿足需求並加速我們的配置解決方案的採用：第一個公告是軟銀科技公司的子公司Cyber trust 採購了我們的CryptoManager 基礎設施和軟體為從企業多功能印表機到連網汽車的連網設備提供安全金鑰配置和安全服務；第二個公告是我們與 Synopsys 合作，為其 DesignWare tRoot 硬體安全模組提供具有信任根的安全金鑰配置。兩家合作夥伴都將利用我們的 CryptoManager 基礎架構和軟體進行金鑰配置，以實現安全、遠端生命週期管理和連接設備的更新。

We've spoken previously about our solutions to provide security from chip to cloud to crowd, and by extending the CryptoManager platform to manage trusted relationships and identify -- and identity access across the life cycle of an SSE. We made strong progress in this program and now commercializing CryptoManager in-field device management capabilities.

我們之前已經談到我們的解決方案可以提供從晶片到雲端再到人群的安全性，並透過擴展 CryptoManager 平台來管理可信任關係以及跨 SSE 生命週期的識別和身分存取。我們在該計劃中取得了巨大進展，現在將 CryptoManager 現場設備管理功能商業化。

Slide 4 highlights the security architecture, showcasing the solutions and services we monetize throughout the device life cycle from chip manufacturing to reoccurring end-user services in-field. Foundationally at the chip level, over 9 billion license chips per year employ our DPA countermeasures.

幻燈片 4 重點介紹了安全架構，展示了我們在從晶片製造到現場重複出現的最終用戶服務的整個設備生命週期中實現貨幣化的解決方案和服務。從根本上來說，在晶片層面，每年有超過 90 億個授權晶片採用我們的 DPA 對策。

Our CryptoManager platform, including our root-of-trust cores and infrastructure, has been deployed with Qualcomm and others, with over 1.5 billion chips configured in 2016. And lastly, this quarter also marked the launch of our in-field IoT device management service as part of our CryptoManager platform for turnkey secure device connectivity, monitoring and provisioning. This service is a natural evolution of our secure management solutions and complements our strategy of delivering security from chip to cloud to crowd.

我們的 CryptoManager 平台，包括我們的信任根核心和基礎設施，已與高通和其他公司一起部署，2016 年配置了超過 15 億個晶片。最後，本季也推出了我們的現場物聯網設備管理服務，作為我們的 CryptoManager 平台的一部分，用於交鑰匙安全設備連接、監控和配置。這項服務是我們安全管理解決方案的自然演變，補充了我們從晶片到雲端再到人群提供安全的策略。

Taking a closer look at the service for chip makers and OEMs, CryptoManager IoT device management can be implemented with a hardware root-of-trust for the highest level of security or with a software agent for increased flexibility and leverages a secure appliance to provision the keys to devices. The security-as-a-service is designed to work with leading cloud platforms and features an intuitive device monitoring dashboard and API to provide out-of-the-box connectivity to IoT service providers and device manufacturers.

仔細研究為晶片製造商和OEM 提供的服務，CryptoManager 物聯網設備管理可以透過硬體信任根來實現，以實現最高層級的安全性，也可以透過軟體代理來實現，以提高靈活性，並利用安全設備來實現配置設備的密鑰。此安全即服務旨在與領先的雲端平台配合使用，並具有直覺的設備監控儀表板和 API，為物聯網服務供應商和設備製造商提供開箱即用的連接。

As part of the launch at IoT World in Santa Clara, we featured live demonstrations with both Qualcomm and STMicroelectronics processor chips, showcasing mutual authentication and communication. We look forward to sharing our progress, and we'll provide updates on ecosystem partners and pilot customers throughout the year.

作為聖克拉拉物聯網世界發布會的一部分，我們使用高通和意法半導體處理器晶片進行了現場演示，展示了相互身份驗證和通訊。我們期待分享我們的進展，並將全年提供生態系統合作夥伴和試點客戶的最新資訊。

In closing, we executed well and now have a product and service portfolio that allows us to leverage our expertise in memory and signaling while expanding our security offerings to drive value in-field. The programs we have in development are poised for growth in the future, while today, we focus on executing to plan. Additionally, we continue to drive partnership agreements with industry leaders to expand our reach.

最後，我們執行得很好，現在擁有一個產品和服務組合，使我們能夠利用我們在記憶體和訊號方面的專業知識，同時擴展我們的安全產品，以推動現場價值。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。此外，我們繼續推動與行業領導者達成合作夥伴協議，以擴大我們的影響力。

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

接下來，我將打電話給拉胡爾，討論季度財務表現。拉胡爾？

Thanks, Ron. Before I go through our financial results, I'd like to remind everyone 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 performance 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 and are not indicative of long-term performance.

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的，並不代表長期業績。

And with that, I'd like to turn to our financial results for the quarter. Let me start with some highlights on Slide 7. As Ron mentioned, we had a strong quarter. We delivered solid revenue growth of 24% year-over-year, towards the high end of our guided range. We are typically down 5% seasonally in Q2, but this was offset by strength in our business. We achieved another quarter of disciplined cost management without sacrificing investment in our growth initiatives and again delivered solid pro forma EPS. 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. Our Q2 revenue and profitability shows the continued execution on our key initiatives.

接下來，我想談談我們本季的財務表現。讓我從幻燈片 7 的一些亮點開始。正如 Ron 提到的，我們有一個強勁的季度。我們實現了 24% 的穩健收入同比增長，接近我們指導範圍的高端。第二季我們的業績通常會季節性下降 5%，但這被我們業務的實力所抵銷。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，並再次實現了穩健的預估每股收益。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，在這些領域我們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。我們第二季的營收和獲利能力顯示我們對關鍵措施的持續執行。

Now let me talk you through some revenue details on Slide 8. Revenue for the first -- for the second quarter was $94.7 million, towards the high end of the guidance we provided of $90 million to $96 million. Our strong revenue performance was due to strength in our licensing program and strong execution by our Security businesses. Going into additional detail, our Memory and Interface revenue was $67.4 million, Security was $23.4 million and our Lighting and Display Technology revenue was $4 million.

現在讓我向您介紹幻燈片 8 上的一些收入詳細資料。第一季（第二季）的收入為 9,470 萬美元，接近我們提供的 9,000 萬至 9,600 萬美元指引的上限。我們強勁的收入表現歸功於我們的授權計劃的實力和安全業務的強大執行力。更詳細地說，我們的記憶體和介面收入為 6,740 萬美元，安全性收入為 2,340 萬美元，照明和顯示技術收入為 400 萬美元。

As you can see in the detailed revenue charts in the appendix of our webcast deck on Slide 16, we are changing how we report revenue to help our investors more easily track our performance. Year-over-year, MID revenue grew by 24%, and our Security Division grew by 42%. The increase in revenue from our Memory and Security divisions was driven by our continued execution on our acquisitions and our strong licensing programs. We have a diversified revenue stream. And as we look at fiscal 2017, we remain on track to meet or exceed current revenue projections for the fiscal year.

正如您在投影片 16 網路廣播的附錄中的詳細收入圖表中看到的那樣，我們正在改變報告收入的方式，以幫助我們的投資者更輕鬆地追蹤我們的業績。與去年同期相比，MID 收入成長了 24%，我們的安全部門成長了 42%。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。我們擁有多元化的收入來源。展望 2017 財年，我們仍有望達到或超過目前財年的營收預測。

Let me walk you through our pro forma income statement on Slide 9. Along with our solid revenue performance in Q2, we continue to actively manage our expenses without sacrificing growth. Cost of revenue plus operating expenses, or what we refer to as total operating expenses, for the quarter came in at $69.3 million, at the midpoint of our expected range. We ended the quarter with headcount of 790, roughly flat with 784 in the previous quarter and up from 622 a year ago. Again, the year-over-year increase in headcount is related to the new employees we welcomed to Rambus through acquisitions in 2016 to support our long-term growth. Revenue and operating expenses led to operating income of $25.4 million. After adjusting for noncash interest expense on our convertible debt, pro forma interest and other expenses for the second quarter were $1.4 million, roughly flat with Q1. Using a flat rate of 35% for pro forma pretax income, net income for the quarter was $15.6 million or $0.14 a share, $0.01 better than the midpoint of our guidance.

讓我向您介紹投影片 9 上的預期損益表。除了第二季穩健的營收表現外，我們還將繼續積極管理支出，同時不犧牲成長。本季的收入成本加上營運費用，或我們所謂的總營運費用，為 6,930 萬美元，處於我們預期範圍的中點。本季結束時，我們的員工人數為 790 人，與上一季的 784 人大致持平，高於一年前的 622 人。同樣，員工人數的同比增長與我們在 2016 年透過收購歡迎新員工加入 Rambus 以支持我們的長期成長有關。收入和營運支出帶來的營運收入為 2540 萬美元。在對可轉換債務的非現金利息支出進行調整後，第二季的預期利息和其他支出為 140 萬美元，與第一季大致持平。以 35% 的統一稅率計算預計稅前收入，本季淨利潤為 1560 萬美元，即每股 0.14 美元，比我們指導的中位數高 0.01 美元。

Now let me turn to the balance sheet details on Slide 10. Overall cash, defined as cash, cash equivalents and marketable securities, was $168 million, down $19.7 million from the previous quarter, as $25 million in cash from operations was offset by the $50 million accelerated share repurchase we announced on May 1. Second quarter CapEx was $1.6 million, and depreciation was $3.3 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 will have roughly $8 million of CapEx for the year, with another $4 million or so in the second half. Correspondingly, I expect depreciation of roughly $3 million per quarter. As we expected, we saw a solid operating cash flow in the second quarter, and as we announced, we repurchased 3.2 million shares in the quarter through our accelerated share repurchase program. Our ability to generate cash positions us nicely in the current industry environment. Overall, we have a strong balance sheet with limited debt and expect to continue to generate strong cash from operations in the future.

現在讓我來看看投影片 10 上的資產負債表詳細資料。現金總額（定義為現金、現金等價物和有價證券）為1.68 億美元，比上一季減少1,970 萬美元，因為來自營運的2,500 萬美元現金被我們5 月1 日宣布的5,000 萬美元加速股票回購所抵銷。 第二季資本支出 160 萬美元，折舊為 330 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 800 萬美元的資本支出，下半年還會有 400 萬美元左右的資本支出。相應地，我預計每季折舊約為 300 萬美元。正如我們預期的那樣，我們在第二季度看到了穩健的營運現金流，正如我們宣布的那樣，我們透過加速股票回購計畫在本季回購了 320 萬股股票。我們產生現金的能力使我們在當前的行業環境中處於有利地位。總體而言，我們擁有強勁的資產負債表和有限的債務，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 third quarter on Slide 11. As a reminder, our forward-looking guidance reflects our best estimates at this point in time and our actual results could differ materially from what I'm about to review. We expect revenue in the third quarter between $96 million and $102 million, which represents our typical seasonal growth. We expect Q3 non-GAAP total operating expenses, which includes COGS, to be between $67 million and $71 million, roughly flat with Q2. Over the course of the year, we expect total operating expenses to stay roughly flat, even as revenue grows. Non-GAAP operating income for the third quarter is expected to be between $25 million and $35 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 $8.5 million and $12 million in taxes. We expect our Q3 share count to be roughly 113 million fully diluted shares outstanding, which includes roughly 200,000 shares of dilution related to the $138 million convertible debt due in the third quarter of 2018. This leads you to between $0.14 and $0.20 of non-GAAP earnings per share for the quarter.

現在讓我談談幻燈片 11 上的第三季指引。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。我們預計第三季的營收將在 9,600 萬美元至 1.02 億美元之間，這代表了我們典型的季節性成長。我們預計第三季非公認會計準則總營運支出（包括銷貨成本）將在 6,700 萬美元至 7,100 萬美元之間，與第二季大致持平。在這一年中，即使收入成長，我們預計總營運支出仍將大致持平。第三季非公認會計準則營業收入預計在 2,500 萬美元至 3,500 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 850 萬至 1,200 萬美元之間。我們預計第三季的完全稀釋流通股數約為 1.13 億股，其中包括約 20 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 0.14 美元到 0.20 美元之間。

Looking ahead to the rest of 2017, we remain focused on ramping our acquisitions, as they continue to deliver to our expectations, as well as maintaining our long-term focus on profitable growth. While we do not issue annual guidance, as we look at consensus estimates from our sell-side analysts, our Q3 guidance, combined with our typical 2% seasonal growth in Q4, would indicate full year revenue slightly higher than current consensus estimates.

展望 2017 年剩餘時間，我們仍然專注於加強收購力度，因為它們繼續實現我們的預期，並保持我們對獲利成長的長期關注。雖然我們不發布年度指導，但根據賣方分析師的共識估計，我們的第三季度指導，加上第四季度典型的 2% 季節性增長，將表明全年收入略高於當前的共識估計。

Let me finish with a summary on Slide 12. As I look 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 very strong balance sheet to support our strategic initiatives.

最後讓我對投影片 12 進行總結。回顧本季度，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、可預測、高利潤的收入基礎，並且擁有非常強大的資產負債表來支持我們的策略性舉措。

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

之後，我會將電話轉回給凱倫以開始問答。我們可以問第一個問題嗎？

(Operator Instructions) Our first question comes from the line of Suji Desilva with Roth Capital.

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

First question on the partnerships. The Cybertrust partnership, is that your first working arrangement with a subsidiary of SoftBank? And did you coordinate with the parent ARM and -- parent organization, and perhaps the ARM acquisition in that effort?

關於夥伴關係的第一個問題。Cyber​​trust 合作夥伴關係是您與軟銀子公司的第一個工作安排嗎？您是否與母公司 ARM 和母公司組織進行了協調，或許還與 ARM 的收購進行了協調？

So that is our first partnership with SoftBank. I certainly look forward to more of them. The specific group that we're working with is part of their technology group, and it's not coordinated with anybody. It's just we work broadly and they have a fantastic position, especially in Japan.

這是我們與軟銀的第一次合作。我當然期待更多這樣的作品。我們正在合作的特定團隊是他們技術團隊的一部分，並且不與任何人協調。只是我們的工作範圍很廣，而且他們的職位非常好，尤其是在日本。

Excellent, very helpful there, Ron. And then on the third quarter growth, can you specify what you think the segment-by-segment growth is across Security, MID, and maybe specifically would give us what the buffer chip was in the second quarter and the outlook there, to give some color there?

非常好，非常有幫助，羅恩。然後，關於第三季度的增長，您能否具體說明您認為安全、MID 領域的逐個細分市場的增長情況，也許具體會告訴我們第二季度的緩衝芯片情況以及那裡的前景，以提供一些信息顏色在那裡？

Sure. So typically, what we see in the third quarter is about 2% growth quarter-over-quarter. I think you'll see some growth both on the security side as well as on the memory side. Most likely, you'll see a little more on the memory than you'll see on the security side. In terms of the buffer chip, I would expect our buffer chip, say, is roughly flat quarter-over-quarter. If you look at the detail we provided in our earnings call -- in the deck of the company, the cost, specifically on Slide 16, we've kind of changed the way that we classify our product revenue to make it easier. And just talking about the buffer chip, we do continue to execute on the program, and we believe we have leadership products that the market is responding to.

當然。通常情況下，我們在第三季度看到的季度環比增長約為 2%。我認為您會看到安全方面和內存方面的一些增長。最有可能的是，您在記憶體上看到的內容比在安全性方面看到的內容要多一些。就緩衝晶片而言，我預計我們的緩衝晶片季度將環比大致持平。如果你看一下我們在財報電話會議中提供的詳細信息——公司的資料、成本，特別是幻燈片 16 上的信息，我們已經改變了產品收入的分類方式，使其變得更容易。就緩衝晶片而言，我們確實繼續執行該計劃，我們相信我們擁有市場正在響應的領先產品。

(technical difficulty)

（技術難度）

Taking a little longer than we'd hoped to help manage the transition between product cycles. So while it's difficult for us to predict the dynamics of the market, we do anticipate to continue to gain in market share. And one of the nice things about having a broad revenue portfolio, like we do with not just the buffer chip but the memory products as well as the security products, is that it allows us to really have a kind of broad-based portfolio to compensate for any delays in adoption.

花費的時間比我們希望的要長一些，以幫助管理產品週期之間的過渡。因此，雖然我們很難預測市場的動態，但我們確實預期市場份額將繼續增加。擁有廣泛的收入組合的好處之一，就像我們不僅在緩衝晶片上，而且在內存產品以及安全產品上所做的那樣，它使我們能夠真正擁有一種基礎廣泛的產品組合來彌補因收養過程中出現任何延誤。

So just to clarify, Rahul, the product revenue is, today, the buffer chip revenue, and it will grow over time with other products. Is that the way to interpret what you said?

拉胡爾，澄清一下，今天的產品收入是緩衝晶片收入，隨著時間的推移，它會隨著其他產品的成長而成長。你所說的話是這樣解釋的嗎？

That is the way to interpret it. I mean, obviously, there are other things that we do in each of our programs that may go into licensing or other pieces. So it's not pure just in terms of the overall program, but I think that is the simplest way to look at it.

這就是解釋它的方式。我的意思是，顯然，我們在每個專案中所做的其他事情可能涉及許可或其他部分。因此，僅就整個程序而言，它並不純粹，但我認為這是最簡單的看待它的方式。

Great. And then my last question, I'll step back in the queue here. Both the AR and the deferred revenues went up on the balance sheet. I'm wondering if you're getting more visibility with some of these partnerships you have, where you're getting upfront payments that you recognize ratably, just to understand the drivers of the balance sheet changes there?

偉大的。然後是我的最後一個問題，我將退到隊列中。資產負債表上的應收帳款和遞延收入均增加。我想知道您是否對其中一些合作夥伴關係有了更多的了解，您是否獲得了您認可的預付款，只是為了了解資產負債表變化的驅動因素？

Sure. So ARs did go up, and it's really just timing of payments, I mean, those payments we've already received in the beginning of Q3. So it's really nothing more than that. I think our DSO, well, I would expect it to come down next quarter. I think it was 25 last quarter, 35 this quarter, and I expect it to continue to trend down. From a deferred revenue perspective, deferred revenue does continue to grow, and I think that does -- leads you to the growth that we're anticipating in our business. I would caution you, though, that it's very difficult to build your intuition on deferred revenues, simply because we have so many different contracts and so many different types of contracts in terms of some that are annual or multiyear as opposed to just period versus period. So it's just something that -- it's a good indicator as it continues to grow, but it's hard to build intuition or metrics on deferred revenue as a predictor of what's going to happen in the future.

當然。所以 AR 確實上升了，這實際上只是付款時間的問題，我的意思是，我們在第三季初就已經收到了這些付款。所以其實也僅此而已。我認為我們的 DSO 預計下個季度會下降。我認為上個季度是 25 個，本季是 35 個，我預計它會繼續呈下降趨勢。從遞延收入的角度來看，遞延收入確實在持續成長，而且我認為這確實會帶來我們預期的業務成長。不過，我要提醒您，建立對遞延收入的直覺是非常困難的，因為我們有很多不同的合同和很多不同類型的合同，其中一些是年度或多年期的，而不僅僅是期間與期間的合約.因此，隨著它的持續成長，它是一個很好的指標，但很難建立關於遞延收入的直覺或指標來預測未來會發生什麼。

And our next question comes from the line of Gary Mobley with Benchmark.

我們的下一個問題來自 Benchmark 的 Gary Mobley。

I wanted to follow up with a question on a comment, Rahul, you made about how the dual in-line memory module chipset business is maybe taking a little bit longer than you expected. Could you give us a sense of where we're at on the revenue for this particular product line for fiscal year '17, and as well, perhaps where you see the business going beyond that? And it seems as though your security side of the business is making up for any delay in the ramp there. Is that a fair characterization?

我想在評論中提出一個問題，Rahul，您提出雙列直插內存模組晶片組業務可能比您預期的時間要長一些。您能否讓我們了解一下 17 財年該特定產品線的收入狀況，以及您認為除此之外的業務發展？看來您的業務安全方面正在彌補那裡的任何延遲。這是一個公平的描述嗎？

Sure. So let me just give you a little more detail. I think probably 6 months or more, we probably anticipated something in the $35 million to $40 million range on that Server DIMM chipset for 2017. And with some of the transition delays that we're seeing, that ramp has probably been pushed out a couple of quarters. So I think it's been roughly in the $5 million or $6 million per quarter range, and that's kind of what we look at continuing, if you look at 6-plus per quarter going out for the rest of 2017. Now that doesn't change how we feel about the program. That doesn't change our -- the share that we've gotten in subsequent generations. It's just a question of timing and adoption. And one of the things that you mentioned, Gary, is something that I actually am very encouraged by, that any given Sunday, when you have a broad portfolio, you're going to have some things that are doing a little better and you're going to have some things that aren't executing exactly as you anticipated. And really, between having the chip business, between having the licensing business, the security initiatives, all the other growth, long-term growth initiatives we have as well, what it allows us to do is smooth out that growth. And as you mentioned, we are doing very well on some of the security initiatives. And some of the things that Ron talked about in his prepared remarks, I think, position us very well for future growth.

當然。讓我為您提供更多細節。我想大概 6 個月或更長時間，我們預計 2017 年伺服器 DIMM 晶片組的價格將在 3500 萬至 4000 萬美元之間。由於我們看到一些過渡延遲，這一增長可能已經推遲了幾個季度。因此，我認為每季大約在 500 萬美元或 600 萬美元的範圍內，如果你看看 2017 年剩餘時間裡每季的支出超過 6 美元，我們會繼續考慮這種情況。現在這並沒有改變我們對該計劃的看法。這不會改變我們在後代中所獲得的份額。這只是時間和採用的問題。加里，你提到的一件事實際上讓我感到非常鼓舞，在任何特定的周日，當你擁有廣泛的投資組合時，你將會有一些事情做得更好一些，而且你’有些事情將不會完全按照您的預期執行。事實上，在擁有晶片業務、擁有許可業務、安全計劃以及我們還有的所有其他成長、長期成長計畫之間，它允許我們做的是平滑這種成長。正如您所提到的，我們在一些安全措施方面做得非常好。我認為，羅恩在準備好的發言中談到的一些事情，為我們未來的發展奠定了良好的基礎。

Okay. Ron, I wanted to get your opinion on something. As you probably are aware, there were some -- there was some speculation that the company has put itself up for sale. And I don't expect you to comment on that specific news item. But relating to this, in your view of creating shareholder value, how do you see things unfolding? And where is the priority as we look into 2018? And as we sit here today and look at the portfolio of companies, which do you think are performing the best relative to the expectations, and I think, conversely, lowest and might need more attention?

好的。羅恩，我想聽聽你對某件事的看法。您可能知道，有一些猜測稱該公司已將自己出售。我不希望你對那個特定的新聞發表評論。但與此相關的是，從您創造股東價值的角度來看，您如何看待事情的發展？展望2018年，我們的首要任務在哪裡？當我們今天坐在這裡審視公司的投資組合時，您認為哪些公司相對於預期表現最好，而我認為相反，哪些公司表現最低，可能需要更多關注？

Yes, obviously, I can't comment on that rumor, it's our policy not to. And people will always be looking at the business as we continue to execute. That's kind of a normal situation. As I said in the prepared remarks, I'm pretty happy across the board with everything that we're doing. I think we're executing together as a team. The team is focused. Each piece of the business is doing relatively well. There is the portfolio effect that Rahul just went through. So I won't belabor that, but I think we're executing.

是的，顯然，我不能對這個謠言發表評論，我們的政策是不要這樣做。當我們繼續執行時，人們將始終專注於業務。這是一種正常情況。正如我在準備好的演講中所說，我對我們正在做的一切感到非常滿意。我認為我們作為一個團隊一起執行。團隊很專注。每項業務都做得相對較好。拉胡爾剛經歷過投資組合效應。所以我不會多說，但我認為我們正在執行。

And our next question comes from the line of Paul Coster with JPMorgan.

我們的下一個問題來自保羅·科斯特與摩根大通的對話。

Any materiality to the NRE revenues in the year-on-year or sequential comparison, Rahul?

Rahul，同比或連續比較對 NRE 收入有何重要性？

I'm sorry, Paul. I had a bit of difficulty understanding your question. I think you're asking if there was anything on -- in terms of NRE revenues for those (inaudible).

對不起，保羅。我有點難以理解你的問題。我認為您是在問這些 NRE 收入方面是否有任何進展（聽不清楚）。

Yes, yes, yes.

對對對。

So what I would tell you is that we continue to have very active dialogues with different partners, and I think you may be referring to some of the future initiatives that we have. And what I'd tell you is that if you look at the different things that we have in the pipeline, we're really excited about the progress that we're making. I think one of the things in particular that we're really excited about is the program that we're doing with Microsoft and just the growth there, the progress we have. And again, as you know, this is specifically regarding the cryogenic memory program. What I will say more broadly is that one of the things that we like to focus on, even though we don't share specifics on any joint development program for obvious reasons, is we like to invest in programs where we have partners investing alongside with us. And what that means is not just they have their own internal teams, but as you mentioned, NRE as well, and that has been a part of our revenue growth quarter-over-quarter. And I expect that it will continue to maintain. So we're very pleased there, but as you can imagine, we don't break that out specifically.

所以我要告訴你的是，我們繼續與不同的合作夥伴進行非常積極的對話，我想你可能指的是我們未來的一些舉措。我要告訴你的是，如果你看看我們正在醞釀中的不同事情，我們對我們正在取得的進展感到非常興奮。我認為我們真正感到興奮的一件事是我們與微軟合作的專案以及那裡的成長和我們所取得的進步。再說一遍，如您所知，這是專門針對低溫記憶體程式的。我要更廣泛地說的是，我們喜歡關注的事情之一是，儘管我們出於明顯的原因沒有分享任何联合開發計劃的具體細節，但我們喜歡投資於有合作夥伴與我們一起投資的專案。我們。這意味著他們不僅擁有自己的內部團隊，而且正如您所提到的，NRE 也是如此，這也是我們季度收入成長的一部分。我預計它將繼續維持下去。所以我們對此非常滿意，但正如你可以想像的那樣，我們沒有具體說明這一點。

And Ron, regarding the CryptoManager initiatives, are you in a position to sort of quantify the opportunity and the time to, let's say, materiality for Rambus?

Ron，關於 CryptoManager 計劃，您是否能夠量化機會和時間，比如說，Rambus 的重要性？

Yes, so what we plan to do on IDM is to be in the position to be in pilots by the end of the year, which would -- depending on how the pilots go, will allow us to have more substantial revenue in the next year, and of course, more the year thereafter. The go-to-market strategy here, as we described in the prepared remarks, is to make it work with the cloud provider. So you look at this as a secure channel. So we're not going to standing up solutions for every possible vertical. We're going to be actually leveraging the existing infrastructure of those cloud providers who are already we're selling to, the IoT service provider. So I think it's the most effective and efficient way that we can go to market.

是的，所以我們計劃在 IDM 上做的是在今年年底之前進行試點，這將使我們在明年獲得更可觀的收入，具體取決於試點的進展情況，當然，此後的一年更多。正如我們在準備好的評論中所描述的，這裡的進入市場策略是使其與雲端供應商合作。所以你將其視為一個安全通道。因此，我們不會為每個可能的垂直領域提供解決方案。我們將實際利用那些我們已經向物聯網服務供應商銷售的雲端供應商的現有基礎設施。所以我認為這是我們進入市場最有效、最有效率的方式。

And our next question comes from the line of Atif Malik with Citi.

我們的下一個問題來自花旗集團的阿提夫馬利克 (Atif Malik)。

First question for Ron. Ron, can you update us on your work with Tsinghua University on the storage-class memory, where you guys stand? If I remember it correctly from last year's Analyst Day, the idea behind this was that maybe it could result into a potential licensing opportunity with them or you can sell it as a start-up to China. Can you just update us where you stand on that project?

第一個問題是問羅恩。Ron，您能為我們介紹一下您與清華大學在儲存層級記憶體的合作嗎？你們的立場如何？如果我沒記錯的話，去年的分析師日的想法是，也許這可能會給他們帶來潛在的許可機會，或者你可以將其作為新創公司出售給中國。您能否向我們介紹一下您對該專案的立場？

Yes, we continue to work very closely with -- on the project. This is the resistive RAM project. We are improving, along with their help, the technology. And we have bigger plans, but I'm not at liberty to describe them at this point,, but stay focused.

是的，我們將繼續在該項目上密切合作。這就是電阻式RAM項目。在他們的幫助下，我們正在改進技術。我們有更大的計劃，但我現在不能自由地描述它們，但請保持專注。

Okay. And then as a follow-up, Rahul, if you talk about the operating margins, your target model is 37% to 40%. You're at 27% Q1. Can you walk us through what will it take to get to that kind of target model operating margin from here?

好的。然後，Rahul，如果你談論營業利潤率，你的目標模式是 37% 到 40%。第一季的進度為 27%。您能否向我們介紹如何才能達到這種目標模式營運利潤率？

Sure, absolutely. What I'll tell you, Atif, is that each of our businesses has a slightly different profile. And I think the key thing that will help us get to that operating margin profile is really just the revenue growth that we anticipate, not just in the back half of this year but next year as well. What you see is that we have a base business. That includes our licensing, cores and lighting that provides roughly $290 million to $300 million of revenue per year. And what we're doing is we're leveraging that historic base business to fuel growth in other areas. So if you look at the growth in the other areas, what you'll see is that you have the buffer chip business, which we talked about earlier, and those margins are in the 50-odd percent range, which is very good margin for a chip business. And the good news is because we continue to invest in that program. So as that business grows, I don't anticipate making significant additional investments in the program. So you may see an incremental operating margin, which would support the targets that we're talking about. Same thing happens for us on the security and other businesses as well. Those businesses -- as you know, in software businesses, you can have margins in the 70%, 80%, 90% range, but what also happens is you have a larger infrastructure you have to support. And so those operating costs can be in the 30-plus range, but it still gets you to roughly a 40-odd percent incremental operating margin. So what I see is that as we have this portfolio growth initiative, no matter which ones strike at that particular time, incrementally, the operating margins are accretive to what we're posting now. Now obviously, the company has gone through a transition through our acquisitions, which have shown a lot of revenue growth and has -- will show profitable growth as well, but there's been some pressure on the operating margins by design as we've added in some of these new portfolios. But really, as we continue to execute is when you'll see that accretion in the coming years. And I'm really excited about the profitability that we're poised to post.

當然，絕對。阿蒂夫，我要告訴您的是，我們每家企業的概況都略有不同。我認為，幫助我們實現營業利潤率的關鍵實際上就是我們預期的收入成長，不僅是今年下半年，還有明年。你看到的是我們有基礎業務。其中包括我們的授權、核心和照明，每年提供約 2.9 億至 3 億美元的收入。我們正在做的是利用歷史悠久的基礎業務來推動其他領域的成長。因此，如果你看看其他領域的成長，你會發現緩衝晶片業務，我們之前談過，這些利潤率在 50% 左右，這對企業來說是非常好的利潤率。晶片業務。好消息是我們繼續投資該計劃。因此，隨著業務的成長，我預計不會對該計劃進行大量額外投資。因此，您可能會看到營業利潤率的增量，這將支持我們正在討論的目標。同樣的情況也發生在我們的安全和其他業務上。這些業務—如您所知，在軟體業務中，您的利潤率可以在 70%、80%、90% 範圍內，但同時發生的情況是您必須支援更大的基礎設施。因此，這些營運成本可能會在 30 % 以上的範圍內，但它仍然能讓您獲得大約 40% 的增量營運利潤。因此，我認為，隨著我們實施投資組合成長計劃，無論哪些計劃在特定時間實施，營業利潤率都會逐漸增加到我們現在公佈的水平。現在顯然，該公司已經透過我們的收購經歷了轉型，這些收購已經顯示出大量的收入成長，並且也將顯示出獲利成長，但正如我們所補充的，營運利潤率在設計上存在一些壓力其中一些新的投資組合。但實際上，隨著我們繼續執行，您將在未來幾年看到這種成長。我對我們即將發布的盈利能力感到非常興奮。

(Operator Instructions) At this time, there are no further questions. This concludes our question-and-answer session. I'd like to turn the call back over to Dr. Black for any additional comments.

（操作員說明） 此時，沒有進一步的問題。我們的問答環節到此結束。我想將電話轉回給布萊克博士以徵求任何其他意見。

Thank you, Karen. As I hope you can see, we feel that we're very well aligned with the needs of the industry and have the right programs in place to capitalize on the trends driving technology choices. Thank you again for your continued interest and time. Have a very nice day.

謝謝你，凱倫。正如我希望您看到的那樣，我們認為我們非常符合該行業的需求，並且制定了正確的計劃來利用推動技術選擇的趨勢。再次感謝您的持續關注和時間。祝你有美好的一天。

Ladies and gentlemen, thank you for your participation in today's conference. This does conclude the program, and you may now disconnect.

女士們、先生們，感謝你們參加今天的會議。這確實結束了程序，您現在可以斷開連接。