Rambus Inc (RMBS) 2018 Q1 法說會逐字稿

Welcome to the Rambus First Quarter and Fiscal Year 2018 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.

歡迎參加 Rambus 2018 年第一季及財年財報電話會議。（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 call over to Rahul Mathur, Chief Financial Officer. Please begin.

我現在想將電話轉給財務長拉胡爾·馬圖爾 (Rahul Mathur)。請開始。

Thank you, and welcome to the Rambus First Quarter 2018 Results Conference Call. I'm Rahul Mathur, CFO. And on the call with me today is Dr. Ron Black, our President and CEO.

謝謝，歡迎參加 Rambus 2018 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。

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 9392458 when you hear the prompt.

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 9392458 來收聽重播。

In addition, we are simultaneously webcasting this call. And along with the audio, we are webcasting slides that we will reference during portions of today's call. 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 5:00 p.m. Pacific Time.

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，我們還播放了網路廣播幻燈片，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 5:00 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 regarding our financial guidance for future periods, including Q2 2018 and full year 2018 prospects, product strategies, timing of expected product launches, demand for existing and newly acquired technologies, potential benefits of our past acquisitions, the growth opportunities of the various markets we serve and changes that we will experience in our financial reporting due to our adoption of the new revenue recognition standard starting in Q1 2018, amongst other things.

我們今天的討論將包含有關我們未來時期財務指引的前瞻性陳述，包括2018 年第二季和2018 年全年前景、產品策略、預期產品發佈時間、對現有和新收購技術的需求、我們過去收購的潛在收益、我們所服務的各個市場的成長機會，以及由於我們從 2018 年第一季開始採用新的收入確認標準等，我們將在財務報告中經歷的變化。

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。

In an effort to provide greater clarity in our financials, we're using both GAAP and non-GAAP financial presentations in both our press release and also on this call. We 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.

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同時使用 GAAP 和非 GAAP 財務簡報。我們在我們的網站上發布了這些非公認會計準則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公認會計準則衡量指標的調節表。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。羅恩將從業務概述開始。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 solid first quarter, and are making strong progress across all of our businesses as we maintain our growth trajectory living up to our tagline, Rambus, making data faster and safer.

謝謝拉胡爾，大家下午好。我們第一季的業績表現強勁，所有業務都取得了強勁進展，我們保持了成長軌跡，不辜負我們的口號「Rambus，讓資料更快、更安全」。

From a financial perspective, in Q1, we delivered revenues of $46.4 million, which reflects the impact of the new accounting standard, ASC 606. As a reference point, under the prior ASC 605 accounting standard, our first quarter revenue would have been $100.5 million, which included $2.5 million from our Lighting division that was wound down during the quarter.

從財務角度來看，第一季我們實現了 4,640 萬美元的收入，這反映了新會計準則 ASC 606 的影響。作為參考，根據先前的 ASC 605 會計標準，我們第一季的收入將為 1.005 億美元，其中包括本季削減的照明部門的 250 萬美元。

If we compare under the same accounting standard and exclude Lighting, this equates to a 4% increase from Q1 of last year. We also delivered pro forma earnings per share in line with our expectations. So overall, we performed well with strong execution in our product groups, continued technology leadership on strategic programs and ongoing licensing of our broad IP portfolio.

如果我們在相同的會計準則下進行比較，並且排除照明，這相當於比去年第一季成長了4%。我們也提供了符合我們預期的預期每股收益。因此，總體而言，我們表現良好，產品組的強大執行力、戰略計劃的持續技術領先地位以及廣泛的知識產權組合的持續許可。

Q1 was a positive quarter for our Memory and Interfaces Division in both chips and IP cores. Our DDR4 memory buffer chip business continues to grow, with further OEM and cloud customer qualifications leading to further design wins at our customers. Indeed, we remain on track to meet our targets for the business and drive significant revenue growth for 2018.

第一季我們的記憶體和介面部門在晶片和 IP 核心方面都取得了積極的進展。我們的 DDR4 記憶體緩衝晶片業務持續成長，進一步獲得 OEM 和雲端客戶資格，從而為我們的客戶贏得更多設計勝利。事實上，我們仍有望實現我們的業務目標，並推動 2018 年營收大幅成長。

As we look to the next generation, we believe we maintain our leadership position for DDR5 memory buffer chips, being the first and only supplier with working silicon that supports the top end speeds for both the RCD and DD chips. We remain actively engaged with our customers and the ecosystem, leveraging our head-start in product development and learnings to help enable the industry develop both the hardware and software infrastructure required to support the bring-up of high-quality DDR5 solutions.

當我們展望下一代時，我們相信我們將保持 DDR5 記憶體緩衝晶片的領導地位，成為第一家也是唯一一家提供支援 RCD 和 DD 晶片高端速度的工作晶片的供應商。我們繼續積極與客戶和生態系統合作，利用我們在產品開發和學習方面的領先優勢，幫助產業開發支援高品質 DDR5 解決方案所需的硬體和軟體基礎設施。

Moving to the other side of our Memory and Interface Division. This quarter saw record revenues for IP cores, as we continue to grow our portfolio with new technologies and expand into new market segments. As we discussed in our previous call, we launched our new GDDR6 Memory PHY in January as part of a comprehensive solution alongside ecosystem partners, Micron, Northwest Logic and Avery Design, leveraging our expertise in high-speed interface design.

轉到記憶體和介面部門的另一邊。隨著我們繼續利用新技術擴大我們的產品組合併擴展到新的細分市場，本季 IP 核收入創下歷史新高。正如我們在之前的電話會議中討論的那樣，我們在1 月份推出了新的GDDR6 內存PHY，作為與生態系統合作夥伴Micron、Northwest Logic 和Avery Design 合作的綜合解決方案的一部分，利用我們在高速接口設計方面的專業知識。

As the first IP supplier to offer a broadly available GDDR6 PHY, we aim to enable new markets outside of graphics that require high-performance memory, including AI, automotive and networking. Indeed, during the quarter, we closed our first major design win for a non-graphics application.

作為第一家提供廣泛可用的 GDDR6 PHY 的 IP 供應商，我們的目標是開拓圖形以外需要高效能記憶體的新市場，包括人工智慧、汽車和網路。事實上，在本季度，我們完成了非圖形應用程式的第一個重大設計勝利。

For the IP cores business, we continue to collaborate with our ecosystem partners to extend our foundry access and gain traction in next-generation technologies, solidifying our market leadership in leading-edge process nodes and performance capabilities, while all the time feeding our IP portfolio with best-in-class innovation.

對於IP 核能業務，我們繼續與生態系統合作夥伴合作，擴大我們的代工範圍並獲得下一代技術的牽引力，鞏固我們在領先製程節點和性能能力方面的市場領導地位，同時始終為我們的IP 產品組合提供支援具有一流的創新。

Turning now to our Security division, which consists of our cryptography, ticketing and payments product groups. We continue to build strong momentum across all areas with solid commercial traction, product development and expanded patent licensing. Developers in our cryptography product group were part of the research team of world-class security experts that, earlier this year, identified 2 wide-reaching CPU vulnerabilities called Meltdown and Spectre. These vulnerabilities highlight the need for a secure chip security by design with controlled secure processing that does not depend on often inherently insecure general-purpose CPUs. The discovery of these vulnerabilities reinforces the importance of SoC designs implementing a strategy of security first, and highlights and the value of our CryptoManager security platform, which absolutely uses this approach.

現在轉向我們的安全部門，該部門由我們的密碼學、票務和支付產品組組成。我們繼續透過堅實的商業吸引力、產品開發和擴大的專利授權在所有領域建立強勁的勢頭。我們密碼產品組的開發人員是世界級安全專家研究團隊的成員，該團隊在今年稍早發現了 2 個影響廣泛的 CPU 漏洞，稱為 Meltdown 和 Spectre。這些漏洞凸顯了對安全晶片安全性的需求，其設計具有受控的安全處理，而不依賴通常本質上不安全的通用 CPU。這些漏洞的發現強調了 SoC 設計實施安全第一策略的重要性，並凸顯了我們的 CryptoManager 安全平台的價值，該平台絕對使用了這種方法。

Our first-generation CryptoManager security engine was an embedded security core that acted as a secure vault for sensitive keys in configuration information that can be used for secure provisioning and device authentication throughout the life cycle of a device. It was not, however, designed to provide processing capabilities or programmability with the core.

我們的第一代 CryptoManager 安全引擎是一個嵌入式安全核心，可作為設定資訊中敏感金鑰的安全保管庫，可用於在裝置的整個生命週期中進行安全性設定和裝置驗證。然而，它的設計目的並不是為核心提供處理能力或可程式性。

Recently, we announced our new next-generation CryptoManager Root of Trust that does provide such secure processing capabilities. This next-generation programmable secure core uses a RISC-V CPU that has been customized by our security experts to go beyond the secure vault and enable the siloed execution a secure code within the core, thus helping to protect against vulnerabilities, such as Meltdown and Spectre.

最近，我們宣布了新的下一代 CryptoManager 信任根，它確實提供了此類安全處理功能。這款新一代可程式安全核心使用由我們的安全專家客製化的 RISC-V CPU，超越安全庫，實現核心內安全程式碼的孤立執行，有助於防範漏洞，例如 Meltdown 和幽靈。

Also part of the cryptography product group is our DPA patent licensing program, which we continue to expand. In 1Q, we signed an agreement with Gemalto to provide access to our DPA countermeasures portfolio, which protects against side-channel attacks.

我們的 DPA 專利許可計劃也是密碼產品組的一部分，我們正在繼續擴展該計劃。第一季度，我們與金雅拓簽署了一項協議，提供對我們的 DPA 對策產品組合的訪問，該產品組合可防止側通道攻擊。

Turning to our ticketing products group, which is a market leader in smart ticketing, with ongoing deployments of our back-office software and services to train and bus operators across the U.K. Our mobile ticketing offering includes a ticket wallet service and white label app that utilizes Host Card Emulation, or HCE, to enable passengers to securely buy and download tickets directly to their smartphone, and then tap through the existing gates or readers to travel. We are looking forward to additional pilots in the coming months.

談到我們的票務產品部門，該部門是智慧票務市場的領導者，不斷向英國各地的火車和巴士營運商部署我們的後台軟體和服務。我們的行動票務產品包括票務錢包服務和白標應用程序，該應用程式利用主機卡模擬（HCE），使乘客能夠安全地購買門票並將其直接下載到智慧型手機上，然後透過現有的登機門或讀卡機進行旅行。我們期待在未來幾個月內增加更多試點。

Turning to our payments product group. There's ongoing traction for our tokenization solutions with worldwide implementation of our Token Service Provider software solution to replace traditional credit card primary account numbers with temporary unique identifiers, the payment tokens, that keep the actual account number secret. As global trends continue to shift toward new payment methods, like peer-to-peer and real-time payments, we see growing demand to bring the security benefits of tokenization beyond traditional mobile payments.

轉向我們的支付產品組。隨著我們的令牌服務提供者軟體解決方案在全球範圍內的實施，我們的令牌化解決方案不斷受到關注，該解決方案用臨時唯一識別碼（支付令牌）取代傳統的信用卡主帳號，從而使實際帳號保密。隨著全球趨勢繼續轉向新的支付方式，例如點對點和即時支付，我們看到越來越多的需求將標記化的安全優勢帶到傳統行動支付之外。

Our Unified Payment Platform that enables multiple payment options for real retail scan-and-go experience using our bank-grade tokenization security continues to attract global interest across multiple retail segments. As noted previously, we are engaged with a major retail customer in Asia Pacific to integrate and deploy the Unified Payment Platform into their digital payment system. This pilot offers not only multiple payment options, but also real-time loyalty point redemption, with the convenience of scan-and-go, and is all based on our hardened bank-grade tokenization software. More on this and other pilots in the coming months.

我們的統一支付平台使用我們的銀行級標記化安全性，支援多種支付選項，實現真正的零售掃描即走體驗，繼續吸引全球多個零售領域的興趣。如前所述，我們正在與亞太地區的一家主要零售客戶合作，將統一支付平台整合並部署到他們的數位支付系統中。此試點計畫不僅提供多種支付選項，還提供即時忠誠度積分兌換，具有掃描即用的便利性，並且全部基於我們強化的銀行級標記化軟體。未來幾個月將詳細介紹該試點計畫和其他試點計畫。

Last, but certainly not least, is our Emerging Solutions Division, which focuses on advanced research, innovation and IP development. We had 2 significant outcomes from the division. The first was a partnership with IBM to develop hybrid memory system architectures for future data centers. Much like our ongoing relationship with Microsoft on cryogenic memory, we are collaborating with IBM to explore advanced memory system architectures targeted at solving the industry's key performance challenges. As part of the collaboration, we will develop an architecture that combines the best attributes of DRAM and storage-class memory to create a high-capacity architecture at lowest cost per bit, with performance levels comparable to that of DRAM.

最後但同樣重要的是我們的新興解決方案部門，該部門專注於高級研究、創新和智慧財產權開發。我們從該部門取得了 2 項重大成果。第一個是與 IBM 合作，為未來的資料中心開發混合記憶體系統架構。就像我們與 Microsoft 在低溫記憶體方面的持續合作關係一樣，我們正在與 IBM 合作探索先進的記憶體系統架構，旨在解決業界的關鍵效能挑戰。作為合作的一部分，我們將開發一種結合了 DRAM 和儲存級記憶體最佳屬性的架構，以最低的每位元成本創建高容量架構，其效能等級可與 DRAM 相媲美。

The second, which just came out last week, was the formation of a joint venture in China with GigaDevice and THG Ventures called Reliance Memory, which focuses on commercializing embedded Resistive Random Access Memory, or ReRAM. Rambus has invested in RRAM technology for several years, and this joint venture is a natural way to continue the path to productization and provide innovative memory solutions for the next wave of state-of-the-art mobile devices.

第二個專案於上週剛公佈，是與 GigaDevice 和 THG Ventures 在中國成立一家名為 Reliance Memory 的合資企業，專注於嵌入式電阻式隨機存取記憶體 (ReRAM) 的商業化。Rambus 多年來一直投資 RRAM 技術，該合資企業是繼續產品化之路並為下一波最先進行動裝置提供創新記憶體解決方案的自然方式。

In closing, Q1 was a strong quarter that continued to reinforce our confidence and our strategy and execution to plan. With that, I'll turn the call to Rahul to discuss the quarterly financial results. Rahul?

最後，第一季是一個強勁的季度，繼續增強了我們的信心以及我們的策略和計劃執行力。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. I'd like to begin with our financial results for the quarter. Let me start with some highlights on Slide 5. As Ron mentioned, we delivered a solid financial results in line with our revenue and EPS expectations. We've chosen to adopt the new accounting standard, ASC 606, using the modified retrospective method, which does not restate prior periods, but rather runs the cumulative effect of the adoption through retained earnings as a beginning balance sheet adjustment.

謝謝，羅恩。我想先介紹一下我們本季的財務表現。讓我從投影片 5 的一些亮點開始。正如 Ron 所提到的，我們交付了符合我們收入和每股盈餘預期的穩健財務表現。我們選擇採用新的會計準則ASC 606，使用修改後的追溯法，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。

As a result, any comparison between first quarter 2018 results under ASC 606 and prior results under ASC 605 is not the best way to track the company's progress.

因此，將 ASC 606 下的 2018 年第一季業績與 ASC 605 下的先前業績進行比較並不是追蹤公司進展的最佳方式。

We are required to present a footnote that presents our 2018 results as if we continue to recognize revenue under the old standard. To make this transition easier to the readers of our financial statements, we will present our results under both ASC 606 and ASC 605. This way, we can have a meaningful discussion regarding the performance of our business instead of focusing on accounting changes.

我們需要提供一個腳註來介紹我們 2018 年的業績，就好像我們繼續按照舊準則確認收入一樣。為了使財務報表的讀者更容易完成這項轉變，我們將根據 ASC 606 和 ASC 605 展示我們的結果。這樣，我們就可以就我們的業務績效進行有意義的討論，而不是專注於會計變更。

Under our new accounting standard, ASC 606, we delivered revenue of $46.4 million. Under ASC 605, we would have delivered revenue of $100.5 million, which included roughly $2.5 million of revenue from our Lighting division, which we closed in the quarter. Excluding the benefit from RLD, our revenue was up year-over-year and in line with the midpoint of our guidance. Under ASC 606, we delivered non-GAAP diluted loss per share of $0.10. Under ASC 605, we would have delivered non-GAAP earnings per share of $0.21, just above the midpoint of our expected range.

根據我們的新會計準則 ASC 606，我們實現了 4,640 萬美元的收入。根據 ASC 605，我們將實現 1.005 億美元的收入，其中包括我們在本季關閉的照明部門的約 250 萬美元的收入。排除 RLD 帶來的收益，我們的收入年增，符合我們指導的中點。根據 ASC 606，我們的非 GAAP 攤薄每股虧損為 0.10 美元。根據 ASC 605，我們將實現非 GAAP 每股收益 0.21 美元，略高於我們預期範圍的中點。

We delivered solid results, while continuing our investments in our business to drive long-term profitable growth. To drive this growth, 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.

我們取得了堅實的業績，同時繼續對業務進行投資，以推動長期獲利成長。為了推動這一成長，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。

Now let me walk you through some of the revenue details on Slide 6. Revenue for the first quarter was $46.4 million under the new revenue accounting standard, and would have been $100.5 million under ASC 605, both within our expectations. Year-over-year, excluding Lighting, under ASC 605, our business was up 4%. As we've mentioned previously, the new revenue recognition standard has a material difference in the timing of revenue recognition for our fixed fee licensing arrangements. Our licensing business continues to perform well, is the foundation of our success and is core to our initiatives in both our Memory and Security businesses.

現在讓我向您介紹幻燈片6 上的一些收入詳細資料。根據新的收入會計標準，第一季的收入為4,640 萬美元，根據ASC 605，第一季的收入為1.005 億美元，均在我們的預期之內。根據 ASC 605，我們的業務年增 4%（不包括照明）。正如我們之前提到的，新的收入確認標準對我們的固定費用授權安排的收入確認時間有重大差異。我們的授權業務持續表現良好，是我們成功的基礎，也是我們記憶體和安全業務措施的核心。

Going into additional detail. Under ASC 605, our Memory and Interface revenue would have been $78 million; Security, $19.9 million; and our Lighting and Display Technology revenue, which we closed midway through the quarter, $2.5 million.

進入更多細節。根據 ASC 605，我們的記憶體和介面收入將為 7,800 萬美元；安全，1,990萬美元；我們的照明和顯示技術收入（本季中期）為 250 萬美元。

Let me know walk you through our non-GAAP income statement on Slide 7. Along with our solid revenue performance in Q1, we once again met our profitability targets on a non-GAAP basis. Cost of revenue, plus operating expenses, or what we refer to as total operating expenses, for the quarter came in at $68.7 million. Again, this included expenses from our Lighting division, which has historically been a breakeven business for us, and for which we don't anticipate will contribute to significant pro forma revenue or expenses going forward.

讓我帶您了解幻燈片 7 上的非 GAAP 損益表。除了第一季穩健的收入表現外，我們再次實現了非 GAAP 基礎上的盈利目標。該季度的收入成本加上營運費用，或我們所說的總營運費用，為 6,870 萬美元。同樣，這包括我們的照明部門的費用，該部門歷來對我們來說一直是盈虧平衡的業務，我們預計該部門不會對未來的預計收入或支出做出重大貢獻。

We ended the quarter with headcount of 771, down from 819 in the previous quarter, primarily due to the employees impacted by the Lighting closure. Over the course of 2018, we expect to invest in headcount to support our growth initiatives in our Memory and Security businesses.

本季結束時，我們的員工人數為 771 人，低於上一季的 819 人，這主要是由於員工受到 Lighting 關閉的影響。2018 年，我們預計將投資於員工隊伍，以支援我們記憶體和安全業務的成長計畫。

Revenue and operating expenses under ASC 605 led to operating income of $31.7 million. We recorded $7.5 million of interest income under ASC 606 related to the financing component of licensing agreements, for which we have not yet received payment, but recognized revenue under the new accounting standard. We incurred $0.6 million of interest expense, primarily related to the convertible notes we issued in Q4. This was offset by incremental interest income related to a higher return on our cash portfolio.

ASC 605 下的收入和營運支出帶來了 3,170 萬美元的營運收入。我們根據 ASC 606 記錄了與許可協議融資部分相關的 750 萬美元利息收入，我們尚未收到付款，但根據新會計準則確認了收入。我們產生了 60 萬美元的利息費用，主要與我們在第四季度發行的可轉換票據有關。這被與我們的現金投資組合報酬率提高相關的增量利息收入所抵銷。

After adjusting for noncash interest expense on our convertible notes, this resulted in non-GAAP interest and other income for the first quarter of $0.1 million, up from Q4.

在對可轉換票據的非現金利息支出進行調整後，第一季的非 GAAP 利息和其他收入為 10 萬美元，高於第四季。

Assuming a flat rate of 24% for non-GAAP pretax income, non-GAAP net income for the quarter was $24 million or $0.21 a share, just at the midpoint of our guidance.

假設非 GAAP 稅前收入統一稅率為 24%，則本季非 GAAP 淨利為 2,400 萬美元，即每股 0.21 美元，正好處於我們指引的中點。

Now let me turn to the balance sheet details on Slide 8. We're very pleased with the strength of our balance sheet. Cash, cash equivalents and marketable securities totaled $291.2 million, down $38.2 million from the previous quarter, due primarily to the $50 million accelerated share repurchase program we launched in the quarter. Cash also increased due to $16.5 million of cash generated from operations. We're pleased with our progress in this area, and we expect to maintain our ability to generate cash from operations in 2018. This will continue to be an important metric to monitor as we adopt ASC 606.

現在讓我來看看投影片 8 上的資產負債表詳細資料。我們對資產負債表的實力感到非常滿意。現金、現金等價物和有價證券總計 2.912 億美元，比上一季減少 3820 萬美元，這主要是由於我們在本季推出的 5,000 萬美元加速股票回購計畫。由於營運產生 1,650 萬美元現金，現金也有所增加。我們對這一領域的進展感到滿意，並預計 2018 年將保持營運產生現金的能力。隨著我們採用 ASC 606，這將繼續成為需要監控的重要指標。

As a result of adopting the new revenue standard, we recognized contract assets worth $818 million, which reflects a net present value of unbilled AR related to licensing arrangements, for which the company has no future performance obligations. The offset of this contract asset is primarily reflected in the $639 million net credit to accumulated deficit, predominantly from the acceleration of revenue recognized under the new revenue standard.

由於採用新的收入標準，我們確認了價值 8.18 億美元的合約資產，這反映了與許可安排相關的未開票 AR 的淨現值，該公司對此沒有未來的履約義務。該合約資產的抵銷主要反映在累計赤字的 6.39 億美元淨信貸上，主要來自新收入標準下確認的收入的加速。

First quarter CapEx was $1.7 million, and depreciation was $2.9 million. Looking forward, I expect roughly $3 million of CapEx for the second quarter and roughly $10 million for the full year of 2018. I also expect depreciation of roughly $3.5 million per quarter in 2018.

第一季資本支出為 170 萬美元，折舊為 290 萬美元。展望未來，我預計第二季的資本支出約為 300 萬美元，2018 年全年的資本支出約為 1,000 萬美元。我還預計 2018 年每季折舊約 350 萬美元。

Overall, we have a strong balance sheet with limited debt, and expect to continue to generate strong cash from operations in the future.

總體而言，我們擁有強勁的資產負債表和有限的債務，並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 9. 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.

現在讓我談談幻燈片 9 上我們對第二季度的指導。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。

To provide our investors and analysts additional transparency during this transition, we're also providing financial outlook as if we were still under ASC 605 as well as ASC 606 during this transition period. Please note that the presentation under ASC 605 is not a substitute for the new ASC 606 revenue recognition standard under GAAP. Future revenue under ASC 606 will be volatile from period-to-period due to the timing and structure of our licensing arrangements. We will continue to focus on leveraging our vast important patent portfolio to maximize the value for our business as well as to provide the best economic structure for our customers.

為了在過渡期間為我們的投資者和分析師提供額外的透明度，我們還提供財務前景，就好像在此過渡期間我們仍處於 ASC 605 和 ASC 606 之下一樣。請注意，ASC 605 下的列報不能取代 GAAP 下新的 ASC 606 收入確認標準。由於我們許可安排的時間安排和結構，ASC 606 下的未來收入將隨時間波動。我們將繼續專注於利用我們龐大的重要專利組合來最大化我們的業務價值，並為我們的客戶提供最佳的經濟結構。

To offer additional transparency, we've also been providing information on licensing billings, which is an operational metric that reflects amounts invoiced to our patent and technology licensing customers during the period, adjusted for certain differences. The differences between licensing billings and royalty revenue under ASC 605 are primarily related to timing, as we don't always recognize revenue the same quarter we bill our customers.

為了提高透明度，我們還提供了有關許可帳單的信息，這是一種營運指標，反映了在此期間向我們的專利和技術許可客戶開出的發票金額，並根據某些差異進行了調整。ASC 605 下的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，因為我們並不總是在向客戶開立帳單的同一季度確認收入。

As you see in the supplemental information we provided on Slide 16 of our earnings deck, on an annual basis, licensing billings closely correlates with what we reported as royalty revenue under ASC 605, given this timing lag. We'll continue to provide licensing billings as another operational metric to help our investors understand the underlying performance of our company.

正如您在損益表投影片 16 上提供的補充資訊中看到的那樣，考慮到此時間滯後，每年的授權費用與我們根據 ASC 605 報告的特許權使用費收入密切相關。我們將繼續提供許可帳單作為另一個營運指標，以幫助我們的投資者了解我們公司的基本績效。

With that said, under the new ASC 606 revenue standard, we expect revenue in the second quarter between $42 million and $48 million. Under the ASC 605 revenue standard, we expect revenue in the second quarter would be between $94 million and $100 million. Excluding the impact of the Lighting division, this is up 4% year-over-year and flat quarter-over-quarter when we are historically down 5% seasonally. We expect Q2 non-GAAP total operating expenses, which includes COGS, to be between $68 million and $64 million, down from Q1, primarily due to the exclusion of the Lighting division. Over the course of 2018, I expect we will keep operating expenses roughly flat as revenue growth providing leverage to our financial model. I expect total operating expenses, which include COGS related to our buffer chip business, to grow through the year as we ship more product. We continue to target $35 million to $40 million in buffer chip revenue in 2018.

話雖如此，根據新的 ASC 606 收入標準，我們預計第二季的營收將在 4,200 萬美元至 4,800 萬美元之間。根據ASC 605營收標準，我們預計第二季營收將在9,400萬美元至1億美元之間。排除照明部門的影響，這一數字同比增長 4%，環比持平，而我們歷史上季節性下降 5%。我們預計第二季度非公認會計準則總營運費用（包括銷貨成本）將在 6,800 萬美元至 6,400 萬美元之間，低於第一季度，這主要是由於不包括照明部門。在 2018 年，我預計我們將保持營運支出大致持平，因為收入成長為我們的財務模型提供了槓桿。我預計隨著我們出貨更多產品，總營運費用（包括與我們的緩衝晶片業務相關的銷貨成本）將在這一年中成長。我們繼續將 2018 年緩衝晶片收入目標定為 3,500 萬至 4,000 萬美元。

Under the new 606 revenue standard, non-GAAP operating loss for the second quarter is expected to be between $26 million and $16 million. We expect roughly $1.7 million in non-GAAP interest and other income and expense. These include $0.6 million of interest expense related to the 2023 notes and $0.2 million related to the remaining 2018 notes, which we expect to pay off in Q3.

根據新的606收入標準，第二季的非GAAP營運虧損預計在2,600萬美元至1,600萬美元之間。我們預計非 GAAP 利息及其他收入和支出約為 170 萬美元。其中包括與 2023 年票據相關的 60 萬美元利息支出和與 2018 年剩餘票據相關的 20 萬美元，我們預計將在第三季償還。

Based on the new tax legislation passed at the end of December, we expect our pro forma tax rate to drop to roughly 24%. The 24% is higher than the new statutory rate of 21%, primarily due to the higher tax rates in our foreign jurisdictions. As a reminder, we pay roughly $20 million of cash taxes per year, driven primarily by our licensing agreements with our partners in Korea. Based on a 24% tax rate, we expect a GAAP benefit of between $7 million and $4 million from taxes in Q2. We expect our Q2 share count to be roughly 107 million basic shares outstanding. This leads you to between $0.20 and $0.13 of non-GAAP loss per share for the quarter.

根據 12 月底通過的新稅法，我們預計預計稅率將降至 24% 左右。24% 高於新的法定稅率 21%，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。根據 24% 的稅率，我們預計第二季的 GAAP 稅收將在 700 萬至 400 萬美元之間。我們預計第二季已發行基本股數量約 1.07 億股。這導致本季非 GAAP 每股虧損 0.20 至 0.13 美元。

Under the ASC 605 revenue standard, using the same assumptions for expenses and other income and expenses, $6 million to $8 million for taxes and 111 million fully diluted share count, we would expect between $19 million and $26 million of non-GAAP net income and between $0.17 and $0.23 of non-GAAP earnings per share for the quarter.

根據ASC 605 收入標準，使用相同的支出和其他收入和支出假設、600 萬至800 萬美元的稅金和1.11 億股完全攤薄後的股票數量，我們預計非GAAP 淨利潤和1900 萬美元至2600 萬美元本季度非 GAAP 每股收益在 0.17 美元至 0.23 美元之間。

Looking ahead to 2018, while we do not issue annual guidance, as we look at consensus estimates from our sell-side analysts, we remain comfortable with current quarterly consensus estimates for growth and earnings for 2018, as reported under ASC 605 prior to the new revenue recognition rules.

展望2018 年，雖然我們不發布年度指引，但在我們查看賣方分析師的共識估計時，我們仍然對當前對2018 年增長和收益的季度共識估計感到滿意，如新法案之前的ASC 605 中報告的那樣。收入確認規則。

Let me finish with a summary on Slide 10. We are proud of the solid performance by our team, and the progress we continue to make against our strategic initiatives. While we understand that the adoption of ASC 606 adds a level of complexity to our financial reporting, it's important to reiterate that the underlying financial strength of our business remains strong. We continue to generate solid cash from operations, and remain very well positioned for continued success as we head into fiscal 2018.

最後讓我對投影片 10 進行總結。我們為我們團隊的穩健表現以及我們在策略性舉措方面不斷取得的進展感到自豪。雖然我們知道採用 ASC 606 增加了我們財務報告的複雜性，但重要的是要重申我們業務的潛在財務實力仍然強勁。我們繼續從營運中產生穩定的現金，並在進入 2018 財年時保持良好的狀態以繼續取得成功。

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 is from Suji Desilva with Roth Capital.

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

I just want to check next quarter, that would be 0 Lighting revenue, is that right, from the guidance?

我只想檢查下個季度，根據指導，照明收入將為 0，對嗎？

Yes, Suji. The next quarter assumes 0 revenue for Lighting for the quarter. We may have some small immaterial amounts of revenue associated with Lighting, primarily associated to patent or technology licensing over the course of the year. But I don't expect that to be material, and it's excluded from our guidance.

是的，蘇吉。下個季度假設該季度​​照明收入為 0。我們可能有一些與照明相關的小額非實質收入，主要與全年的專利或技術授權相關。但我認為這不會是實質性的，並且它被排除在我們的指導之外。

Okay, helpful. And then on the -- as I look at the Security business, the royalties there are down in the first quarter versus the fourth quarter, third quarter for Security. Is that seasonality? Or is there some other trend going on there?

好的，有幫助。然後，當我觀察安全業務時，第一季的特許權使用費比第四季和第三季的安全費有所下降。這就是季節性嗎？或是有其他趨勢嗎？

Yes. It's a combination of seasonality, and also just timing of arrangements and agreements. I'll tell you, Suji, one of the benefits of our business is because we do have so many different growth opportunities, is we're not dependent on any one of them in order to make our commitments to you on a quarterly basis. So in this case, it was just simply timing of agreements.

是的。這是季節性的結合，也是安排和協議的時間安排的結合。我告訴你，Suji，我們業務的好處之一是因為我們確實有很多不同的成長機會，我們不依賴其中任何一個來每季向您做出承諾。因此，在這種情況下，這只是協議的時間安排。

Okay, helpful there. And then the OpEx, if I look at your guidance versus the revenue guidance, it seems like it's up as a percent of revenue. Is additional investment going on there? Or any other factors?

好的，有幫助。然後是營運支出，如果我看看你的指導與收入指導，它似乎佔收入的百分比上升了。那裡正在進行額外投資嗎？還是有其他因素？

So we are continuing to invest in both our Memory and Security businesses, but what's also changing is that as our buffer chip revenue grows, there's more COGS associated with that. And so you'll see a little more of the total operating expenses related to those COGS.

因此，我們將繼續投資記憶體和安全業務，但同樣變化的是，隨著我們的緩衝晶片收入的成長，與之相關的銷貨成本也隨之增加。因此，您會看到更多與這些銷貨成本相關的總營運費用。

That's -- that kind of leads me to one of my other question, which is on the cost on the gross margin. What would be the drift down there as the memory buffer business grows? What would you expect that to exit the year rather? Just some quantification there would be helpful.

這讓我想到了另一個問題，即毛利率成本。隨著記憶體緩衝區業務的成長，那裡會發生什麼變化？您預計今年會發生什麼事？只要進行一些量化就會有所幫助。

Sure. I wouldn't be surprised to see our overall pro forma gross margins under 605 drop a couple of points towards the end of the year just as the buffer chip business grows. That said, we still have a lot of other very exciting interesting opportunities on the licensing and core side, which is almost 100% gross margin. But by design, as that chip business grows, I wouldn't be surprised to see a couple of tics down from gross margin on a year-over-year basis.

當然。當緩衝晶片業務成長時，我們在 605 下的整體預期毛利率在年底下降幾個百分點，我不會感到驚訝。也就是說，我們在授權和核心方面仍然有很多其他非常令人興奮的有趣機會，毛利率幾乎為 100%。但按照設計，隨著晶片業務的成長，如果毛利率比去年同期出現一些下降，我不會感到驚訝。

Okay. And then my last question, and I'll get back in the queue. For Ron, perhaps, on the RISC-V CPU you guys have developed here. Is there extensively use for that beyond the CryptoManager Root of Trust, where it's first showing up here?

好的。然後是我的最後一個問題，我會回到隊列。對於 Ron，也許是你們在這裡開發的 RISC-V CPU。除了首次出現在這裡的 CryptoManager 信任根之外，它是否還有廣泛的用途？

Yes. I'm very pleased to say that we've had unprecedented interest in it. Part if it -- we found the Spectre and Meltdown issues when we're developing this last year, a brilliant technology as in the Security division. And our announcement of the new initiative has generated interest in both licensing as a core, but also us using it as a chip in various applications. So we're very broadly exploring that with a lot of very high-profile names. Unfortunately, I can't reveal them.

是的。我很高興地說我們對它產生了前所未有的興趣。部分原因是——我們去年開發這項技術時發現了 Spectre 和 Meltdown 問題，這是安全部門的一項出色技術。我們宣布的新舉措引起了人們對作為核心的許可以及我們在各種應用中將其用作晶片的興趣。因此，我們正在與許多非常知名的名字進行非常廣泛的探索。不幸的是，我不能透露它們。

Your next question is from Sidney Ho with Deutsche Bank.

您的下一個問題來自德意志銀行的 Sidney Ho。

My first question is, you have said in the past that you expect the security revenues to grow 10% to 15%. Is that still your target? Maybe a little color on how much of that growth comes from IP and cores, how much from tech implementation and maybe how much from subscription model that you're hoping to transform, too?

我的第一個問題是，您過去曾說過預計安全收入將成長10%至15%。這仍然是你的目標嗎？也許可以稍微說明一下，這種成長有多少來自IP和核心，有多少來自技術實施，還有多少來自您希望轉變的訂閱模式？

Yes, sure. That is -- Sidney, it's Ron. It's exactly what we expect. I mean, obviously, we're targeting more aggressively than that. But that's what we expect. I think we've said in the past that the licensing in cores is more flattish. And the growth is really about the CryptoManager, the IoT security service, the software side of things than the patent -- or the payments and ticketing, which are tokenization solutions. So again, software-based security parts. Now what can change that trajectory is the announcement that we just made with the RISC-V core, given the demand that we have. That may see a significantly higher uptick in more of these embedded security solutions over time.

是的，當然。那是－－西德尼，我是羅恩。這正是我們所期望的。我的意思是，顯然我們的目標比這更積極。但這正是我們所期望的。我想我們過去曾說過，核心的許可更加平坦。成長實際上與 CryptoManager、物聯網安全服務、軟體方面有關，而不是專利——或者是支付和票務，這些都是代幣化解決方案。再說一次，基於軟體的安全部分。現在，考慮到我們的需求，我們剛剛發布的 RISC-V 核心公告可以改變這一軌跡。隨著時間的推移，這些嵌入式安全解決方案的數量可能會顯著增加。

That's helpful. My follow-up question is, if you look at your royalty revenue for your Memory division, it has accelerated in the past few quarters to now, I think, if my math is right, is close to 14% year-over-year. Is there any one-time benefit in those numbers? Or is that more sustainable going forward? Just looking at the royalties and what's in MID.

這很有幫助。我的後續問題是，如果你看看你的記憶體部門的特許權使用費收入，它在過去幾個季度中一直在加速增長，我認為，如果我的數學正確的話，它同比接近 14%。這些數字有什麼一次性好處嗎？或者說，這種情況未來是否更可持續？只需查看版稅和 MID 中的內容即可。

Your next question is from Gary Mobley with Benchmark.

您的下一個問題來自 Benchmark 的 Gary Mobley。

(technical difficulty)

（技術難度）

Sure. I should apologize to the last question or the last caller. But with respect to the mobile interface division, and this relates to the last question asked, I was hoping that you could break down the split between the buffer chips, IP core licensing and just straight patent royalties and give us a sense of the growth of the IP cores and the buffer chips as the year progresses.

當然。我應該向最後一個問題或最後一個來電者道歉。但關於行動介面部門，這與最後一個問題相關，我希望你能打破緩衝晶片、IP 核許可和直接專利使用費之間的劃分，讓我們了解行動介面的成長情況。隨著時間的推移，IP核和緩衝晶片也會不斷增加。

Sure. So if you look at Slide 15 in the deck that we provided, Gary, we break down revenue under both 606 as well as 605. And what you'll see on the mid-side in terms of what we report as product revenue, that's predominantly what we do from a buffer chip perspective. Now the royalty and technology revenue is on the royalty revenue line, and then we also have some cores in the contract and other revenue line as well. So those aren't broken out as cleanly. But what you'll see is that we have about $6 million in buffer chip revenue in Q1, and what I'd expect is that I'd expect that to grow in each subsequent quarter of 2018 to get to the $35 million to $40 million for the total year. I think from the patent side, particularly on MID for the royalty contract and other, I'd expect that to continue to be maybe roughly flat, go up or down just based on the timing of renewals for different partners and customers.

當然。因此，加里，如果您查看我們提供的幻燈片中的幻燈片 15，我們將在 606 和 605 下細分收入。您將在中間看到我們報告的產品收入，這主要是我們從緩衝晶片的角度所做的事情。現在特許權使用費和技術收入都在特許權收入線上，然後我們在合約和其他收入線上也有一些核心。所以這些並沒有那麼清晰地分解。但你會看到，我們第一季的緩衝晶片收入約為 600 萬美元，我預計 2018 年後續每季的營收將成長到 3,500 萬至 4,000 萬美元全年。我認為從專利方面來看，特別是在專利使用費合約和其他方面，我預計專利數量將繼續大致持平，僅根據不同合作夥伴和客戶的續約時間而上升或下降。

Okay. And on the China resistive -- RRAM JV that you announced last week, can you give us a sense of how that may impact the P&L statement and the balance sheet as well looking out over the next couple of quarters?

好的。關於您上週宣布的中國電阻-RRAM 合資企業，您能否讓我們了解一下這可能對損益表和資產負債表以及未來幾季的前景產生怎樣的影響？

Sure. What I'll tell you is that's still relatively new, and I think it's going to take us a while to get the traction from a product perspective. So we did make a small investment into that JV. And we invested not just cash, but patents as well. But I'd expect it's going to take at least a year or 2 in order for that to really come out with some sort of product revenue. So there's a small bit of cash that was deployed for that JV that we announced last week, but I don't expect it to have material benefits from revenue for at least 1 or 2 years.

當然。我要告訴你的是，這仍然是相對較新的，我認為我們需要一段時間才能從產品的角度獲得吸引力。所以我們確實對該合資企業進行了少量投資。我們不僅投資了現金，還投資了專利。但我預計至少需要一兩年的時間才能真正產生某種產品收入。因此，我們為上周宣布的合資企業部署了少量現金，但我預計它至少在一兩年內不會從收入中獲得實質收益。

Okay. Last question for me. You mentioned on your last earnings call that you were -- your intent was to get out of the Lighting business, but your hope was to find a buyer for the business. And I assumed is that you had a restructuring charge and basically winding down the business that you were unable to find a buyer? Or is that still perhaps in the cards.

好的。對我來說最後一個問題。您在上次財報電話會議上提到，您的意圖是退出照明業務，但您希望為該業務找到買家。我認為你有重組費用並且基本上結束了你無法找到買家的業務？或者說這仍然是可能的。

We ended up, Gary, it's Ron, really breaking it into pieces and selling different parts of the business. But there wasn't a sustainable long-term business there from our perspective. And as a consequence, there was no buyer of the whole asset.

我們最終，加里，是羅恩，真正將其分解並出售了業務的不同部分。但從我們的角度來看，那裡沒有可持續的長期業務。結果，整個資產沒有買家。

(Operator Instructions) And there are no further questions. Ron, do you have any closing remarks?

（操作員說明）並且沒有其他問題。羅恩，您有什麼結束語嗎？

Yes. Thank you. As you can see, we continue to demonstrate our leadership and execution across our products, and deliver profitable growth across the company. Thank you for your continued interest and time. Have a very nice evening.

是的。謝謝。正如您所看到的，我們繼續在產品中展示我們的領導力和執行力，並在整個公司中實現盈利成長。感謝您的持續關注和時間。祝您有個愉快的夜晚。

Thank you for attending today's conference. You may now disconnect.

感謝您參加今天的會議。您現在可以斷開連線。