Rambus Inc (RMBS) 2018 Q2 法說會逐字稿

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

歡迎參加 Rambus 第二季和 2018 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。

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

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

Thank you, Sonia, and welcome to the Rambus Second Quarter 2018 Results Conference Call. I'm Rahul Mathur, CFO. And on the call with me today is Luc Seraphin, our CEO.

謝謝 Sonia，歡迎參加 Rambus 2018 年第二季業績電話會議。我是財務長拉胡爾·馬圖爾。今天與我通話的是我們的執行長 Luc Seraphin。

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 3034809 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 3034809 來收聽重播。

In addition, we are simultaneously webcasting this call, and along with the audio, we're webcasting slides that we will reference during portions of today's call. So even if you're joining us via conference call, you may want to access the webcast with 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，我們同時對本次電話會議進行網路廣播，並與音訊一起網路廣播投影片，我們將在今天電話會議的部分內容中引用這些投影片。因此，即使您透過電話會議加入我們，您也可能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 Q3 2018 and full year 2018 prospects, product strategies, timing of expected product launches, demand for existing and newly acquired technologies, the growth opportunities of the various markets we serve and changes that we will experience in our financial reporting due to our adoption of a new revenue recognition standard that started 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 年第三季和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、各個市場的成長機會由於我們採用了 2018 年第一季開始的新收入確認標準等，我們的服務和財務報告將經歷一些變化。

These statements are subject to risks and uncertainties that are discussed during this call and may be more fully described in the documents we filed 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 on 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 from 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」頁面的「財務發布」下查看此資訊。

The order of our call today will be as follows: Luc will start with an overview of the business; I will discuss our financial results, including 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：Luc 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 will now turn the call over to Luc to provide an overview of the quarter. Luc?

我現在將把電話轉給 Luc，以提供本季的概述。呂克？

Thanks, Rahul, and good afternoon, everyone. I have met many of you at our Annual Financial Analyst Day and investor conferences. Before we begin, I wanted to take a moment to briefly introduce myself. I joined Rambus 5 years ago as the leader of our worldwide sales organization and then became General Manager of our Memory and Interface Division. Now as the interim CEO, I'm excited to take on the role of guiding the company. With that, I'll turn now to the results for the quarter.

謝謝拉胡爾，大家下午好。我在年度金融分析師日和投資者會議上認識了你們中的許多人。在開始之前，我想花點時間簡單介紹一下自己。我於 5 年前加入 Rambus，擔任我們全球銷售組織的領導者，然後成為我們記憶體和介面部門的總經理。現在作為臨時首席執行官，我很高興能夠擔任指導公司的角色。現在，我將討論本季的業績。

We delivered a solid second quarter, making progress across all of our businesses as we continue to execute on strategy and maintain our growth trajectory. From a financial perspective, our performance was in line with our expectations. We delivered GAAP revenues of $56.5 million. For reference, our second quarter revenue would have been $98.8 million under the prior ASC 605 accounting standard. If we compare under the same accounting standard excluding the impact of our Lighting division, this equates to a 9% increase year-over-year.

我們第二季業績表現強勁，隨著我們繼續執行策略並保持成長軌跡，所有業務都取得了進展。從財務角度來看，我們的業績符合我們的預期。我們的 GAAP 收入為 5,650 萬美元。作為參考，根據先前的 ASC 605 會計標準，我們第二季的收入將為 9,880 萬美元。如果我們在相同的會計標準下進行比較，排除照明部門的影響，這相當於同比增長 9%。

Overall, we performed well with strong execution in our product groups and continued technology leadership on strategic programs. Our licensing program remains strong with a record number of deals closed in Q2, including IDM and Socionext and continued growth of our IP portfolio fueled by collaboration with our industry partners.

總體而言，我們憑藉產品組的強大執行力以及戰略計劃上持續的技術領先地位而表現出色。我們的授權計畫依然強勁，第二季完成的交易數量創歷史新高，其中包括 IDM 和 Socionext，並且在與產業夥伴的合作推動下，我們的 IP 組合持續成長。

For the Memory and Interface Division, Q2 was a positive quarter with ongoing broad OEM and cloud customer qualifications in chips and record first half revenue for IP cores. Our DDR4 memory buffer chip business continues to grow with steady gains in market share and revenue growth. We hit our financial target of $6 million in Q1 and $8 million in Q2 and continue to execute to remain on track to hit our target of $35 million to $40 million for the year.

對於記憶體和介面部門來說，第二季度是一個積極的季度，晶片領域持續獲得廣泛的 OEM 和雲端客戶資格，並且 IP 核上半年收入創紀錄。我們的DDR4記憶體緩衝晶片業務持續成長，市場佔有率和收入穩定成長。我們在第一季實現了 600 萬美元的財務目標，在第二季度實現了 800 萬美元的財務目標，並將繼續執行，以實現今年 3500 萬美元至 4000 萬美元的目標。

The next-generation DDR5 memory buffer chip, we maintained our leadership position as the first and only supplier with working silicon that supports the top-end speeds for both the RCD and DD chips. We are leveraging our head start in product development and continue to have strong collaboration with the memory vendors as well as the broad ecosystem to bring high-quality DDR5 solutions to market.

在下一代 DDR5 記憶體緩衝晶片中，我們作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，保持了領先地位。我們正在利用我們在產品開發方面的領先地位，並繼續與記憶體供應商以及廣泛的生態系統進行強有力的合作，將高品質的 DDR5 解決方案推向市場。

We continue our leadership in high-speed IP cores, with record revenue for the first half of 2018 and multiple new customer wins for GDDR6 and HBM2 on advanced process nodes. As the first IP supplier to offer GDDR6 PHY, we continue to see traction from customers across multiple high-performance applications including AI, automotive and networking.

我們繼續保持在高速 IP 核領域的領先地位，2018 年上半年收入創歷史新高，並在先進製程節點上的 GDDR6 和 HBM2 贏得了多個新客戶。作為第一家提供 GDDR6 PHY 的 IP 供應商，我們不斷看到來自人工智慧、汽車和網路等多種高效能應用的客戶的青睞。

We continue to collaborate with our ecosystem partners to extend our foundry access and gain traction in next-generation technologies, maintaining our market leadership in leading edge process nodes and performance capabilities while feeding our best-in-class IP portfolio.

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，保持我們在領先製程節點和性能能力方面的市場領先地位，同時提供我們一流的 IP 產品組合。

Turning now to our Security division, which consists of our cryptography, ticketing and payment product groups. We continue to gain commercial traction on our product programs and build upon our global leadership position, embedded security and tokenization. As we discussed previously, early in the quarter, our Cryptography product group launched the CryptoManager Root of Trust to enable security by design with a secure core embedded directly in the hardware. The CryptoManager Root of Trust builds upon our first generation CryptoManager Security Engine by adding flexible and secure processing capabilities within the trust boundary of the core. Featuring a secure RISC-V CPU custom design by our security experts, the core help to address wide-reaching CPU vulnerabilities, like Meltdown and Spectre, in a broad range of applications including IoT, networking and automotive.

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。我們的產品計劃繼續獲得商業吸引力，並鞏固我們的全球領導地位、嵌入式安全性和代幣化。正如我們之前所討論的，在本季度初期，我們的密碼學產品組推出了 CryptoManager Root of Trust，透過直接嵌入硬體中的安全核心來實現安全設計。CryptoManager 信任根建構在我們的第一代 CryptoManager 安全引擎的基礎上，在核心的信任邊界內添加了靈活且安全的處理功能。此核心採用由我們的安全專家進行的安全 RISC-V CPU 客製化設計，有助於解決物聯網、網路和汽車等廣泛應用中廣泛的 CPU 漏洞，例如 Meltdown 和 Spectre。

As the importance of device level security continues to grow in multiple segments like IoT and networking, we are seeing rapidly increasing interest in the ability to securely position those devices with unique and trusted keys and identities at manufacturing and in the field. With nearly 5 billion devices provisioned to date by our CryptoManager infrastructure, Rambus remains the most mature provider of device level positioning solutions and expect to continue to see steady growth in demand and customer traction.

隨著設備級安全性在物聯網和網路等多個領域的重要性不斷增長，我們發現人們對在製造和現場使用唯一且可信賴的金鑰和身分安全地定位這些設備的能力的興趣迅速增長。迄今為止，我們的 CryptoManager 基礎設施已配置了近 50 億台設備，Rambus 仍然是最成熟的設備級定位解決方案提供商，並預計需求和客戶吸引力將繼續穩定成長。

As we look now to our ticketing and payment product groups, Q2 saw the announcement of new customers for each group. As a market leader in smart ticketing solution for trains and bus operators across the U.K., we announced implementation of our smart ticketing software with West Midlands. We are also pleased to report our Host Card Emulation or HCE Ticket Wallet Service has been selected to bring mobile ticketing to passengers on Scotland's national rail network.

當我們現在關注票務和支付產品組時，第二季每組都宣布了新客戶。作為英國火車和巴士營運商智慧票務解決方案的市場領導者，我們宣布與西米德蘭茲郡合作實施我們的智慧票務軟體。我們也很高興地報告，我們的 Host 卡模擬或 HCE 票務錢包服務已被選中為蘇格蘭國家鐵路網絡上的乘客提供行動票務服務。

With that, ScotRail’s passengers will be the first to be able to use their smartphones to securely buy, download and use their tickets to travel on rail in the U.K.

至此，ScotRail 的乘客將成為第一批能夠使用智慧型手機安全購買、下載和使用火車票的英國鐵路公司。

For our payments product group, we also announced last week that we have been selected by Coles, one of Australia's largest retail groups, to secure its digital payment solution. Featuring our Unified Payment Platform, Coles will be leveraged our bank proven tokenization solution for retail to enhance the customer-buying journey and provide a hassle-free omnichannel payment service.

對於我們的支付產品集團，我們上週也宣布，澳洲最大的零售集團之一 Coles 選擇我們來確保其數位支付解決方案的安全。憑藉我們的統一支付平台，Coles 將利用我們經過銀行驗證的零售代幣化解決方案來增強客戶的購買旅程，並提供無障礙的全通路支付服務。

Last but certainly not least is our Emerging Solutions Division, which focuses on advanced research, innovation and IP development. Through our ongoing partnerships with industry leaders like Microsoft and IBM, we continue to build our portfolio of advanced memory IP and develop technologies that help move the industry forward. Both our cold and hybrid memory programs continued to progress, with each in varying stages of prototype development. By collaborating on research and development for the future memory architectures, which includes a growing list of ecosystem partners, we are also able to leverage our learnings to drive licensing and product engagements with our memory and security customers.

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。透過與 Microsoft 和 IBM 等產業領導者的持續合作，我們持續建立先進記憶體 IP 組合併開發有助於推動產業發展的技術。我們的冷記憶體和混合記憶體專案都在繼續取得進展，每個專案都處於原型開發的不同階段。透過合作研究和開發未來的記憶體架構（其中包括越來越多的生態系統合作夥伴），我們還能夠利用我們的經驗來推動與記憶體和安全客戶的授權和產品合作。

In closing, Q2 was a strong quarter that continued to reinforce our confidence in our strategy and execution to plan.

最後，第二季度是一個強勁的季度，繼續增強了我們對策略和計劃執行的信心。

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, Luc. I'd like to begin with our financial results for the quarter. Let me start with some highlights on Slide 5.

謝謝，盧克。我想先介紹一下我們本季的財務表現。讓我從幻燈片 5 的一些亮點開始。

As Luc mentioned, we delivered solid financial results in line with our revenue and EPS expectations. As you know, we've chosen to adopt a new accounting standard, ASC 606, using the modified retrospective method, which does not restate prior periods but rather runs a cumulative effect of the adoption through retained earnings as a beginning balance sheet adjustment. As a result, any comparison between second quarter 2018 results under ASC 606 and prior results under ASC 605 is not the best way to track the company's progress. We are required to present a footnote that presents our 2018 results as if we continued to recognize revenue under the old standard. To make this transition easier for the readers of our financial statements, we will continue to present our results under the ASC 606 and ASC 605 through this transition period. This way, we can have a meaningful discussion regarding the performance of our business instead of focusing on accounting changes.

正如 Luc 所提到的，我們實現了穩健的財務業績，符合我們的收入和每股盈餘預期。如您所知，我們選擇採用新的會計準則 ASC 606，採用修改後的追溯法，該準則不會重述前期，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。因此，將 ASC 606 下的 2018 年第二季業績與 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。我們需要提供一個腳註，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能夠更輕鬆地完成這項過渡，我們將在此過渡期內繼續根據 ASC 606 和 ASC 605 公佈我們的業績。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 the new accounting standard ASC 606, we delivered revenue of $56.5 million. Under ASC 605, we would have delivered revenue of $98.8 million. Under ASC 606, we delivered non-GAAP diluted loss per share of $0.03. Under ASC 605, we would have delivered non-GAAP earnings per share of $0.21, just above the midpoint of our expected range. We delivered solid results while continuing 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.

根據新會計準則 ASC 606，我們實現了 5,650 萬美元的收入。根據 ASC 605，我們將實現 9,880 萬美元的收入。根據 ASC 606，我們的非 GAAP 攤薄每股虧損為 0.03 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。我們取得了堅實的成果，同時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，重點是記憶體和安全。

Now let me walk you through some revenue details on Slide 6. Revenue for the second quarter was $56.5 million under the new revenue accounting standard, higher than our expectations due to the structure of license agreements signed within the quarter. Revenue would have been $98.8 million under ASC 605 at the high end of our guidance range. Year-over-year, excluding the lighting business we shut down in Q1, our business was up 9%. 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 as the foundation of our success, and it's core to our initiatives in both our memory and security businesses.

現在讓我向您介紹投影片 6 上的一些收入詳細資訊。根據新的收入會計準則，第二季的收入為 5,650 萬美元，由於本季度簽署的許可協議的結構，高於我們的預期。根據 ASC 605，收入將為 9,880 萬美元，處於我們指導範圍的上限。與去年同期相比，不包括我們在第一季關閉的照明業務，我們的業務成長了 9%。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 $73.3 million, and our security business revenue would have been $25.5 million. We continue to gain commercial traction on our security product programs and build upon our global leadership position in tokenization and embedded security. As we develop our business, we've grown the size of the opportunities in our pipeline creating a different revenue profile than we previously anticipated. Specifically, some of the revenue we projected for 2018 will now be part of larger agreements structured over a longer period of time. As a result, we now expect security revenue in 2018 to remain roughly flat year-over-year. However, we remain confident in our ability to grow this business long term and are excited by the growing number of engagements and customer wins.

根據 ASC 605 的更多細節，我們的記憶體和介面收入將為 7,330 萬美元，我們的安全業務收入將為 2,550 萬美元。我們的安全產品計劃繼續獲得商業吸引力，並鞏固我們在代幣化和嵌入式安全領域的全球領導地位。隨著我們業務的發展，我們不斷擴大通路中的機會規模，從而創造出與我們先前預期不同的收入狀況。具體來說，我們預計 2018 年的部分收入現在將成為在較長時間內建立的更大協議的一部分。因此，我們現在預計 2018 年的安全收入將與去年同期大致持平。然而，我們對長期發展這項業務的能力仍然充滿信心，並對越來越多的合作和贏得客戶感到興奮。

Let me walk you through our non-GAAP income statement on Slide 7. Along with our solid revenue performance in Q2, we once again met our profitability targets on a non-GAAP basis. Cost of revenue plus operating expenses, or what we referred to as total operating expenses for the quarter came in at $66.8 million. We ended the quarter with headcount at 791, up from 771 in the previous quarter. Over the course of 2018, we expect to invest in headcount to support our growth initiatives in our Memory and Security businesses. Revenue and operating expenses under ASC 605 led to operating income of $32 million. We recorded $7 million of interest income under ASC 606 related to the significant financing component of license agreements for which we have not yet received payment, but recognize revenue under the new accounting standard.

讓我向您介紹投影片 7 上的非 GAAP 損益表。除了第二季穩健的收入表現外，我們再次實現了非 GAAP 基礎上的獲利目標。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 6,680 萬美元。本季結束時，我們的員工人數為 791 人，高於上一季的 771 人。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。ASC 605 下的收入和營運支出帶來了 3,200 萬美元的營運收入。我們根據 ASC 606 記錄了 700 萬美元的利息收入，這些利息收入與許可協議的重要融資部分相關，我們尚未收到付款，但根據新會計準則確認了收入。

We incurred $0.8 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. After adjusting for noncash interest expense on our convertible notes, this resulted in non-GAAP interest and other expense for the quarter of $0.7 million, up from Q1. Using an assumed flat rate of 24% for non-GAAP pretax income, non-GAAP net income for the quarter would have been $23.8 million under ASC 605 or $0.21 a share just above the midpoint of our guidance.

我們產生了 80 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。在可轉換票據的非現金利息費用進行調整後，本季的非公認會計準則利息和其他費用為 70 萬美元，高於第一季。假設非 GAAP 稅前收入統一率為 24%，根據 ASC 605，本季非 GAAP 淨利潤將為 2,380 萬美元，即每股 0.21 美元，略高於我們指導的中點。

Now let me turn to the balance sheet details on Slide 8. We are very pleased with the strength of our balance sheet. Cash, cash equivalents and marketable securities totaled $298.3 million, up $7.1 million from the previous quarter due primarily to proceeds from employee stock plans of $4.8 million and cash from operations of $3.6 million. We expect to maintain our ability to generate cash from operations in 2018. This will be an important metric to monitor as we adopt the 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 2.983 億美元，比上一季增加 710 萬美元，這主要是由於員工股票計劃收益 480 萬美元和營運現金 360 萬美元。我們預計 2018 年將維持營運產生現金的能力。當我們採用 ASC 606 時，這將是一個需要監控的重要指標。

We expect cash to go down in Q3 as we pay off the remaining $81 million balance on our notes due in 21 -- 2018. As a result of adopting ASC 606, at the end of Q2, we had contract assets worth $751 million, which reflects the net present value of unbilled AR related to licensing arrangements for which the company has no future performance obligations.

我們預計第三季現金將減少，因為我們還清了 2018 年 21 日到期票據的剩餘 8,100 萬美元餘額。由於採用了 ASC 606，到第二季末，我們的合約資產價值 7.51 億美元，這反映了與公司沒有未來履約義務的許可安排相關的未開票 AR 的淨現值。

Second quarter CapEx was $3.6 million, and depreciation was $2.6 million. Looking forward, I expect roughly $3 million of CapEx for the third quarter and roughly $10 million or $11 million for the full year of 2018. I also expect depreciation of roughly $3 million per quarter in 2018.

第二季資本支出為 360 萬美元，折舊為 260 萬美元。展望未來，我預計第三季的資本支出約為 300 萬美元，2018 年全年的資本支出約為 1,000 萬美元或 1,100 萬美元。我還預計 2018 年每季折舊約 300 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，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 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. To provide our investors and analysts additional transparency during this accounting transition, we're also providing financial outlook as if we are 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 patent portfolio to maximize the value for our business as well as provide the best economic structure for our customers.

現在讓我談談幻燈片 9 上我們對第三季度的指導。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。為了在會計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。由於我們的授權安排的時間和結構，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 licensing customers during the period adjusted for certain differences. The differences between licensing billing 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，這是一個營運指標，反映了在針對某些差異進行調整的期間向我們的許可客戶開出的發票金額。ASC 605 下的授權計費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計費的同一季度確認收入。

As you've seen 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 billing as another operational metric to help our investors understand the underlying performance of our company.

正如您在我們的損益表投影片 16 上提供的補充資訊中看到的那樣，考慮到這種時間滯後，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計費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業績。

With that said, under the new ASC 606 revenue standard, we expect revenue in the third quarter between $45 million and $51 million. Under the ASC 605 revenue standard, we expect revenue in the third quarter would be between $97 million and $103 million. Excluding the impact of Lighting division, this is up 5% year-over-year.

話雖如此，根據新的 ASC 606 收入標準，我們預計第三季的營收將在 4,500 萬美元至 5,100 萬美元之間。根據ASC 605營收標準，我們預計第三季營收將在9,700萬美元至1.03億美元之間。排除照明部門的影響，這一數字年增 5%。

We expect Q3 non-GAAP total operating expenses, which includes COGS, to be between $68.5 million and $64.5 million, in line with Q2 spend. Over the course of 2018, I expect we will keep operating expenses roughly flat as revenue grows, providing leverage to our financial model.

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 6,850 萬美元至 6,450 萬美元之間，與第二季支出一致。2018 年，我預計隨著收入的成長，我們將保持營運支出大致持平，從而為我們的財務模型提供槓桿作用。

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.

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 third quarter is expected to be between $23.5 million and $13.5 million. Under the ASC 605 revenue standard, non-GAAP operating income for the quarter is expected to be between $28.5 million and $38.5 million. For non-GAAP interest and other income and expense, we expect roughly $5.6 million income for ASC 606 and a $1.4 million expense under ASC 605. This includes $0.8 million of interest related to the notes due in 2023 and $0.2 million related to the remaining notes due in 2018, which we expect to pay off in August.

根據新的 606 收入標準，第三季非 GAAP 營運虧損預計在 2,350 萬美元至 1,350 萬美元之間。根據 ASC 605 收入標準，本季非 GAAP 營業收入預計在 2,850 萬美元至 3,850 萬美元之間。對於非 GAAP 利息和其他收入和支出，我們預計 ASC 606 的收入約為 560 萬美元，ASC 605 的支出為 140 萬美元。這包括與 2023 年到期票據相關的 80 萬美元利息，以及與 2018 年到期剩餘票據相關的 20 萬美元利息，我們預計將在 8 月還清。

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 higher tax rates in our foreign jurisdictions. As a reminder, we pay roughly $20 million of cash taxes each year driven primarily by our licensing agreements with our partners in Korea. Under ASC 606 and based on a 24% tax rate, we expect a GAAP benefit between $4 million and $2 million from taxes in Q3. We expect our Q3 share count to be roughly 108 million basic shares outstanding. This leads you to between $0.13 and $0.06 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，主要是由於我們與韓國合作夥伴簽訂的許可協議所致。根據 ASC 606 和 24% 的稅率，我們預計第三季的 GAAP 稅收將在 400 萬至 200 萬美元之間。我們預計第三季已發行基本股數量約 1.08 億股。這導致本季非 GAAP 每股虧損 0.13 美元至 0.06 美元。

Under the ASC 605, using the same assumptions for operating expenses, $7 million to $9 million for taxes and 111 million fully diluted share count, we would expect between $20.6 million and $28.2 million of non-GAAP net income and between $0.19 and $0.25 of non-GAAP earnings per share for the quarter.

根據ASC 605，使用相同的營運費用假設、700 萬至900 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 淨利潤為2,060 萬至2,820 萬美元，非GAAP 淨利潤為0.19至 0.25 美元。- 本季公認會計準則每股收益。

Looking ahead, 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 Q4 2018 as reported under ASC 605 prior to the new revenue recognition rules.

展望未來，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，我們仍然對新收入確認之前根據 ASC 605 報告的 2018 年第四季度增長和收益的當前季度共識估計感到滿意規則。

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 we iterate that the underlying financial strength of our business remains strong. We continue to generate solid cash from operations and remain very focused for continued success as we head into the rest of 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，但我們重申，我們業務的潛在財務實力仍然強勁，這一點很重要。我們繼續從營運中產生穩定的現金，並在進入 2018 年剩餘時間時繼續專注於持續成功。

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

之後，我會將電話轉回索尼婭開始問答。我們可以問第一個問題嗎？

(Operator Instructions) Your first question comes from the line of Sidney Ho from Deutsche Bank.

（操作員指示）您的第一個問題來自德意志銀行的Sidney Ho。

This is [Martha] on behalf of Sidney. I was wondering if you could provide some color on what the customer adoption is looking like in your Security division, so across cryptography, payments the ticketing. And how can we think about those contracts contributing to revenue this year? I know you kind of guided it to be more flattish, if I understood that correctly.

我是[瑪莎]代表西德尼。我想知道您是否可以提供一些關於您的安全部門的客戶採用情況的信息，例如跨密碼學、支付票務等。我們如何看待這些合約對今年收入的貢獻？如果我理解正確的話，我知道你有點引導它變得更加扁平。

This is Luc. So first of all, last week, we announced that our Unified Payment Platform was selected by Coles in Australia for digital payments. And this week, we announced that ScotRail has adopted our ticketing solution. So we do see commercial traction across-the-board with our security product programs that build upon our leadership position in tokenization and embedded security. But as we develop the business, what we see is that we have grown the size of the opportunities in our pipeline, creating a different revenue profile than we previously anticipated. Specifically some of the revenue we projected for 2018 will now be part of larger agreements, structured over a longer period of time. So as a result, we now expect security revenue in 2018 to remain roughly flat year-over-year. However, we remain confident in our ability to grow this business long term, and I'm excited by the growing number of engagements and customer wins.

這是呂克.首先，上週我們宣布我們的統一支付平台被澳洲 Coles 選擇用於數位支付。本週，我們宣布 ScotRail 已採用我們的票務解決方案。因此，我們確實看到我們的安全產品計劃具有全面的商業吸引力，這些計劃建立在我們在代幣化和嵌入式安全方面的領導地位之上。但隨著我們業務的發展，我們看到我們的管道中的機會規模不斷擴大，創造了與我們之前預期不同的收入狀況。具體來說，我們預計 2018 年的一些收入現在將成為更大協議的一部分，並在更長的時間內建立。因此，我們現在預計 2018 年的安全收入將與去年同期大致持平。然而，我們對長期發展這項業務的能力仍然充滿信心，我對不斷增加的合作和贏得客戶感到興奮。

Okay, got it. And I guess, as my follow-up. I know you guys have said that Rambus remains committed to its previous business strategy despite the management transition. But given that you reevaluated your Lighting business a few quarters ago, is it fair to say you'll continue to sort of reevaluate your portfolio of product offerings going forward via both acquisitions and divestitures?

好，知道了。我想，作為我的後續行動。我知道你們說過，儘管進行了管理層換屆，Rambus 仍然致力於其先前的業務策略。但考慮到您在幾個季度前重新評估了您的照明業務，是否可以公平地說您將繼續透過收購和剝離來重新評估您的產品組合？

Thank you. Yes, so the first thing I would say is that through the transition, I noted we have a strong, very collaborative management team, and I'm really pleased with teamwork that we have with this team. I would say that the transition has given us an opportunity to look at the composition of our portfolio and to continue to refine that portfolio as we focus on growth. I think that will help us accelerate and improve the quality and the speed of the decisions we make. So as you said, in the past quarters, you've seen us reduce investments in areas where we haven't seen customer traction like the smart data accelerator, the imaging business and our Lighting division. And I think you'll see us continue to accelerate our decision making in this regard. And we'll focus on areas of growth organically and inorganically as well.

謝謝。是的，所以我要說的第一件事是，透過過渡，我注意到我們擁有一支強大的、非常協作的管理團隊，我對我們與這個團隊的團隊合作感到非常滿意。我想說，這一轉變讓我們有機會審視我們的投資組合的組成，並在我們專注於成長的同時繼續完善該投資組合。我認為這將幫助我們加快並提高決策的品質和速度。正如您所說，在過去的幾個季度中，您看到我們減少了在智慧數據加速器、成像業務和照明部門等沒有客戶吸引力的領域的投資。我想你會看到我們繼續加快這方面的決策。我們還將關注有機和無機成長領域。

Your next question comes from the line of Gary Mobley from Benchmark.

您的下一個問題來自 Benchmark 的 Gary Mobley。

Welcome to the call, Luc. I know we've met in the past, but I just wanted to welcome you to the call. Rahul, I noticed you mentioned that you've, with respect to the fourth quarter of 2018, you expressed comfort in the fourth quarter revenue estimate versus the full year 2018 consensus. And so therefore, I'm assuming you're expecting the normal seasonal sequential uptick in the fourth quarter. And given the upside that you showed in the second quarter and as you're guiding to in the third quarter, therefore, does that put the full year number somewhere in the neighborhood of $404 million in billings?

歡迎您的來電，盧克。我知道我們過去見過，但我只是想歡迎您來電。Rahul，我注意到您提到您對 2018 年第四季的營收預測與 2018 年全年共識相比表示滿意。因此，我假設您預計第四季度會出現正常的季節性連續上升。考慮到您在第二季所表現出的優勢以及您在第三季所指引的那樣，這是否會使全年的帳單金額接近 4.04 億美元？

Gary, thanks for your question. Let me make sure I look at the same numbers that you do. I think what we did today in terms of from a guidance perspective, and again I'm talking about ASC 605, which I think they're the numbers that you're talking, is that the midpoint of our range for Q3 was $100 million in revenue, which is up slightly from Q2. Remember, excluding the Lighting division, our revenue in Q2 was roughly flat from Q1, when normally it's down 5%. So it does kind of show that underlying growth rate of our business. What I talked about from a Q4 perspective is expressing comfort with consensus. So I think consensus estimates is about $102 million from a revenue perspective. And so if I look at maybe $100 million for us in Q3 and if you add the consensus of $102 million in Q4, I think that gets you closer to kind of a $401 million for 2018. But again, we guide 1 quarter at a time. So I gave you kind of top line and bottom line for Q3 and expressed comfort for top line and then consensus EPS also under 605 for Q4. Hopefully, that's helpful.

加里，謝謝你的問題。讓我確保我所看到的數字與您所看到的數字相同。我認為我們今天從指導的角度所做的事情，我再次談論 ASC 605，我認為它們是你所說的數字，我們第三季度範圍的中點是 1 億美元收入較第二季度略有增長。請記住，不包括照明部門，我們第二季度的收入與第一季大致持平，而通常情況下會下降 5%。所以它確實顯示了我們業務的潛在成長率。我從第四季的角度談到的是表達安慰和共識。因此，我認為從收入角度來看，共識估計約為 1.02 億美元。因此，如果我看一下第三季我們的營收可能為 1 億美元，如果你加上第四季 1.02 億美元的共識，我認為這會讓你更接近 2018 年的 4.01 億美元。但同樣，我們一次指引一個季度。因此，我給了你們第三季的營收和淨利潤，並對營收表示滿意，然後一致認為第四季每股收益也低於 605。希望有幫助。

Yes, I know we're just splitting hairs here. You mentioned record licensing deal activity in the second quarter. Can you give us some color as to where you saw that record licensing activity achieved or generated? Was it on the patent side? Was it on the core side? Or was it on the security side of the business? Or all of the above?

是的，我知道我們只是在這裡吹毛求疵。您提到第二季的許可交易活動創紀錄。您能否告訴我們一些關於您在哪裡看到的記錄許可活動實現或產生的信息？是在專利方面嗎？是在核心方面嗎？還是在業務的安全方面？還是以上皆是？

Yes, thanks, Gary. And thanks for the introduction words. It's actually across-the-board. Although we are covered by NDAs with our customers, I would say that we were able to close contracts on the patent licensing side, on the IP cores and on the security side. So it's a combination of all of those.

是的，謝謝，加里。並感謝您的介紹。這實際上是全面的。儘管我們與客戶簽訂了保密協議，但我想說，我們能夠在專利許可方面、IP 核和安全方面簽訂合約。所以它是所有這些的組合。

Gary, if I can add a little more color, I think it was part of our press release for the first half of the year, for us from a core perspective, was a record for us. And even if you look at the divisional trends, this is something I'd said last quarter, is that it's hard to look at anyone of our divisions on a quarter-to-quarter basis just because of how those deals can be structured. But we absolutely saw strength across-the-board, and you see that just in the growth quarter-over-quarter on the security side as well. Hopefully, that helps answer your question.

加里，如果我可以添加更多色彩的話，我認為這是我們上半年新聞稿的一部分，從核心角度來看，對我們來說是一個記錄。即使你看看部門趨勢，我在上個季度說過，很難僅僅因為這些交易的結構而逐季度地觀察我們的任何一個部門。但我們絕對看到了全面的實力，而且您也可以在安全方面的季度環比增長中看到這一點。希望這有助於回答您的問題。

Sure, sure. My last question relates to the timing of DDR5 buffer chip revenue. I know it's your belief that you're first to market with working silicon, and I'm just wondering if you can give us a sense of how far of a lead you have compared to your competitors? And having worked in silicon, how that can translate into share as we transition to DDR5 and when you think the market opportunity in dollar terms evolves for DDR5?

一定一定。我的最後一個問題與 DDR5 緩衝晶片營收的時間安排有關。我知道您相信自己是第一個將可用晶片推向市場的人，我只是想知道您能否讓我們了解一下您與競爭對手相比領先了多少？當我們轉向 DDR5 時，當您認為 DDR5 的市場機會（以美元計算）發生變化時，我們在晶片領域的工作經驗如何轉化為份額？

Thanks, Gary. We see DDR5 ramping in volume in 2020. So it's some time away from us. The lead in DDR5 sampling is important because it allows us to work early with the ecosystem partners that are part of this DDR5 launch. So the memory partners and the processor partners all have to develop their ecosystem around the DDR5 technologies. And the very fact that we were the first to introduce, our chip was there, important from that standpoint. Of course, our competitors also introduced products, but that's going to be a race between now and the ramp in 2020. But having a head start and every time we have new samples, being able to improve our relationship and deepen our relationship with ecosystem partners is really, really important in our ability to gain share when the product ramps.

謝謝，加里。我們預計 DDR5 的銷售量將在 2020 年大幅成長。所以離我們還有一段時間。DDR5 採樣的領先地位非常重要，因為它使我們能夠儘早與參與本次 DDR5 發布的生態系統合作夥伴合作。因此，記憶體合作夥伴和處理器合作夥伴都必須圍繞 DDR5 技術開發自己的生態系統。事實上，我們是第一個推出我們的晶片的人，從這個角度來看，這一點很重要。當然，我們的競爭對手也推出了產品，但這將是從現在到 2020 年的競爭。但是，每次我們有新樣品時，能夠取得領先地位，能夠改善我們的關係並加深我們與生態系統合作夥伴的關係，對於我們在產品提升時獲得份額的能力來說非常非常重要。

Your next question comes from the line of Atif Malik from Citi.

您的下一個問題來自花旗銀行的 Atif Malik。

This is Amanda on for Atif. Can you give us a quick update on where you stand with the CEO transition? Luc, I know you're sort of in an interim role at this point, and congratulations on the new role. But can we just talk a little bit about how the transition is going? How the search for a permanent CEO is at this point?

這是阿曼達為阿蒂夫做的節目。您能否向我們簡單介紹一下您對執行長換屆的立場？Luc，我知道你目前處於臨時角色，恭喜你擔任新角色。但我們能簡單談談過渡的進展嗎？目前尋找永久執行長的情況如何？

Sure. Let me talk a little bit about that, Amanda. This is Rahul. So let me just talk about what I've been authorized to say by our board. So the board has commenced on a comprehensive search process to identify and evaluate internal as well as external candidates with the existence of a leading -- assistance, I should say, of a leading executive search firm. Frankly, as I look at our company today, we have a CEO. His name is Luc. So we're continuing to go run our business. In terms of timing, what I'll say is that we expect it will take several months to evaluate internal and external candidates, and have full confidence that the board will conduct a deliberate and thoughtful process. The benefit is that Luc has knowledge of our company's operations and has a strong relationship not just with the internal team but also with our customers. So we're continuing to move forward as before on our strategic and financial objectives. I think you heard Luc just mention now of having an opportunity to accelerate some of the resource decisions we've already been making. I think the only difference from a timing perspective is that this change has caused a bit of a short delay in our annual strategic planning cycle. So as you're aware, we typically present our strategic plan to our board in the middle of Q3 and then to our investors at the Analyst Day at the end of Q3. So with those delays, that means our Analyst Day may be pushed into Q4 instead. Let me also say some other words that I've been authorized to say just about the transition. The termination followed an incident from earlier this year that was unrelated to the company's strategy, financial or operational performance. Once our board became aware of the incident, they hired an independent outside investigator to conduct a thorough examination. The board also gave Dr. Black an opportunity to present his side directly to the board. After evaluating the information presented to them, the board determined that Dr. Black's conduct fell short of the company's standards and terminated his employment. And in connection with his termination of employment, Dr. Black resigned from his position as a board director. As the announcement we issued indicated, this decision had nothing to do with our strategy, financials or operations, and our board acted when it had the information it needed to make a decision. But just to come back to what I said earlier, we're running our company. We have a CEO in place, and we're moving forward.

當然。讓我談談這一點，阿曼達。這是拉胡爾。讓我談談我們董事會授權我說的話。因此，董事會已開始全面的搜尋流程，以識別和評估內部和外部候選人，並有一家領先的獵人頭公司的協助。坦白說，當我今天審視我們的公司時，我們有一位執行長。他的名字叫呂克。所以我們將繼續經營我們的業務。就時間安排而言，我要說的是，我們預計需要幾個月的時間來評估內部和外部候選人，並完全相信董事會將進行深思熟慮的流程。這樣做的好處是，Luc 了解我們公司的運營，並且不僅與內部團隊而且與我們的客戶都建立了牢固的關係。因此，我們將像以前一樣繼續推進我們的策略和財務目標。我想你聽到 Luc 剛剛提到現在有機會加速我們已經做出的一些資源決策。我認為從時間角度來看唯一的差異是這項變更導致我們的年度策略規劃週期出現了一些短暫的延遲。如您所知，我們通常會在第三季中期向董事會介紹我們的策略計劃，然後在第三季末的分析師日向投資者介紹。因此，由於這些延遲，這意味著我們的分析師日可能會推遲到第四季。我還被授權說一些關於過渡的其他話。此次終止是在今年稍早發生的與公司策略、財務或營運績效無關的事件之後發生的。我們的董事會得知這起事件後，立即聘請了一名獨立的外部調查員進行徹底檢查。董事會也為布萊克博士提供了直接向董事會陳述自己觀點的機會。在評估了向他們提供的資訊後，董事會確定布萊克博士的行為未達到公司標準並終止了他的僱傭關係。由於終止僱傭關係，布萊克博士辭去了董事會董事職務。正如我們發布的公告所示，這項決定與我們的策略、財務或營運無關，我們的董事會在掌握做出決定所需的資訊時採取了行動。但回到我之前所說的，我們正在經營我們的公司。我們已經任命了首席執行官，我們正在向前邁進。

Great. Another question that I have is sort of on the accounting change. And is there any change in how you're interacting with your licensing customers in terms of renewing contracts that are up or signing new licensing customers? Is there a different outlook in how you are building out those contracts going forward in order to have a more simplified, I guess, revenue recognition process?

偉大的。我的另一個問題是關於會計變更的。在續約或簽署新的許可客戶方面，您與許可客戶的互動方式是否有任何變化？在如何制定這些合約方面，您是否有不同的看法，以便實現更簡化的收入確認流程？

Amanda, it's a great question and something that we've spent a lot of time on internally. What I'll say is that we've been unequivocal that we will not give up long-term value for our company in order to try to resolve a change in accounting standard. What we have been doing is looking at different contract terms that would allow us to take revenue ratably under ASC 606 much as we have had under ASC 605. And of course, we'll continue to do what's in the best interest of our partners as well as our company going forward. I think that's also one of the reasons that you will continue to see variability in terms of how we report our revenue under ASC 606. For example, Q2 under 606 was certainly above the guidance range that we provided earlier but that just has to do with the timing of contracts that we signed. That's why I'm also trying to give you 605 as well as licensing billings, so that you have all the information you need to read the underlying health of our company.

阿曼達，這是一個很好的問題，我們在內部花了很多時間。我要說的是，我們一直明確表示，我們不會為了解決會計準則的變化而放棄公司的長期價值。我們一直在尋找不同的合約條款，使我們能夠在 ASC 606 下按比例獲得收入，就像我們在 ASC 605 下獲得的收入一樣。當然，我們將繼續做最符合我們合作夥伴以及我們公司未來利益的事情。我認為這也是您將繼續看到我們根據 ASC 606 報告收入的方式存在差異的原因之一。例如，606 下的第二季肯定高於我們先前提供的指導範圍，但這與我們簽署合約的時間有關。這就是為什麼我還試圖向您提供 605 以及許可帳單，以便您獲得了解我們公司的基本健康狀況所需的所有資訊。

And then on a related note to that, with 606, do you see more of an impact if there are delays in little transitions at customers than the memories guide? Is that something that would impact being above or below guidance?

然後，與此相關的是，對於 606，如果客戶的小轉換出現延遲，您是否會看到比記憶指南更大的影響？這會影響高於或低於指導嗎？

So let me make sure I understand your question, Amanda. Could you ask that one again? Are you saying if there's delays in transition to new memories from our customers?

所以讓我確保我理解你的問題，阿曼達。你能再問一下那個嗎？您是說我們的客戶向新記憶的過渡是否有延遲？

Yes. Is that -- what would impact the up or down, above guidance range?

是的。那是什麼會影響高於指導範圍的上行或下行？

Got you. So most of the transitions we're talking about, right, have to do with the adoption of DDR4 and DDR5. And as Luc mentioned, we already have samples for what we think are going to be the standards for DDR5. He has certainly much more customer intimacy in terms of how those start to ramp. But I wouldn't be surprised to see that ramp starting in 2020. Now that's for our buffer chip revenue, and the revenue recognition for the chip revenue is actually pretty similar between ASC 605 and ASC 606. Where you start to see differences is in licensing agreements because under ASC 606, if there's no performance obligation in the contract, then we recognize the entire value of the deal the moment we sign it. I think if I can see a benefit in ASC 606 is that what you see in my balance sheet -- or I should say, in our balance sheet, is $751 million of present value, of contract assets for something that we have no performance obligation. So I look at that as almost $7 per share is in our stock for something for which we have no performance obligation in order to go collect. I think from a quarter-to-quarter basis, what's really going to determine whether or not we'll meet our guidance from 606 and 605 is just signing contracts. And I think what we've showed pretty consistently is we will continue to do what's the best interest in our company over the long term. I'm not going to give away value for our company in order just to make a quarter if it's a material difference for us from a revenue and cash flow and precedent perspective.

明白你了。所以我們談論的大多數轉變都與 DDR4 和 DDR5 的採用有關。正如 Luc 所提到的，我們已經有了我們認為將成為 DDR5 標準的樣本。就客戶的成長方式而言，他確實與客戶有更多的親密感。但如果看到 2020 年開始出現這種成長，我不會感到驚訝。現在這是我們的緩衝晶片收入，ASC 605 和 ASC 606 之間晶片收入的收入確認實際上非常相似。您開始看到許可協議中的差異，因為根據 ASC 606，如果合約中沒有履行義務，那麼我們在簽署交易時就承認交易的全部價值。我認為，如果我能看到ASC 606 的好處，那就是你在我的資產負債表中看到的——或者我應該說，在我們的資產負債表中，是我們沒有履約義務的合約資產的現值7.51 億美元。所以我認為，我們的股票中有近 7 美元每股，我們沒有履約義務來收取。我認為，從每個季度來看，真正決定我們是否能夠達到 606 和 605 的指導的只是簽署合約。我認為我們一貫表現出的就是我們將繼續做對我們公司長期最有利的事情。如果從收入、現金流量和先例的角度來看這對我們來說有重大影響，我不會為了賺一個季度的錢而放棄我們公司的價值。

Your next question comes from the line of Mark Lipacis from Jefferies.

您的下一個問題來自 Jefferies 的 Mark Lipacis。

First question on the memory buffer business. If you listen to the earnings calls of a lot of the hyperscale cloud players, you hear them talking about taking their CapEx forecasts up. And I'm wondering if this is -- is this filtering down to you guys? Are you seeing any better visibility in the demand profile or any conversations with your customers qualitatively about what the demand environment is like or what orders could be like, that might be above and beyond what you have been talking about in the $35 million, $40 million range? That's the first question.

關於記憶體緩衝區業務的第一個問題。如果你聽過許多超大規模雲端廠商的財報電話會議，你會聽到他們談論上調資本支出預測。我想知道這是否是你們的過濾？您是否在需求概況或與客戶的任何對話中看到了更好的可視性，以定性地了解需求環境是什麼樣的或訂單可能是什麼樣的，這可能超出了您在3500 萬美元、4000萬美元中談論的內容範圍？這是第一個問題。

Sure. I'll ask Luc just to talk about in terms of the demand profile. I think one of the benefits for us is -- particularly in the memory market is, years ago, we signed long term, very profitable, stable, predictable license agreements. And that really allows us to, one, just continue to invest in the future and what happens in the industry. I think the other benefit is exactly the second half of your question, Mark, is that by then engaging in a partnership that allows us to then grow in other areas, in some of these product areas that we have both on the memory side as well as on the security side. So certainly, our engagement with each of these customers is much broader. I'll ask Luc to talk about what he's seeing in terms of the ramp for the buffer chip, I think, which is what you're asking for in terms of DDR4.

當然。我會請 Luc 談談需求概況。我認為對我們來說的好處之一是——特別是在記憶體市場，幾年前我們簽署了長期、利潤豐厚、穩定、可預測的授權協議。這確實使我們能夠，第一，繼續投資於未來和行業中發生的事情。我認為另一個好處正是你問題的後半部分，馬克，就是到那時建立合作夥伴關係，使我們能夠在其他領域發展，在某些我們在內存方面也有的產品領域就像在安全方面一樣。當然，我們與這些客戶的接觸範圍要廣泛得多。我會請 Luc 談談他在緩衝晶片的斜坡方面所看到的情況，我想，這就是您在 DDR4 方面所要求的。

Yes. We do see great potential for our DDR4 ramp this year and next year. We do see those dynamics between the hyperscale data centers and the OEMs and the memory vendors. One of the focus we had over the last year is to be in direct contact with the end customers, the OEMs, the hyperscale vendors, so that we can track those shifting demand. And we believe that we are going to continue to grow this business this year and next year. Our footprint is really strong as memory vendors introduce new memory types and as the processor vendors introduce new versions of their processors. And as the demand shifts between the end customers, we're staying close to that.

是的。我們確實看到了今年和明年 DDR4 產能提升的巨大潛力。我們確實看到了超大規模資料中心與 OEM 和記憶體供應商之間的動態。去年我們的重點之一是與最終客戶、原始設備製造商、超大規模供應商直接聯繫，以便我們能夠追蹤這些不斷變化的需求。我們相信，今年和明年我們將繼續發展這項業務。隨著記憶體供應商推出新的記憶體類型以及處理器供應商推出新版本的處理器，我們的足跡非常強大。隨著最終客戶之間的需求變化，我們會緊跟其後。

Fair enough. On the GDDR6 PHY product, where are you in the deployment cycle? Are you -- are customers sampling this and testing it? Or are they putting this into production systems yet? And if not yet, when might that happen?

很公平。在 GDDR6 PHY 產品上，您處於部署週期的哪個階段？您是否—客戶正在採樣並測試它？或者他們已經將其投入生產系統了嗎？如果還沒有，那麼什麼時候會發生？

Without breaking any NDAs, we are engaged with customers as we speak in the development and deployment of GDDR6 IP into their products. It's an IP as opposed to a buffer chip type of product.

在不違反任何保密協議的情況下，我們與客戶合作，將 GDDR6 IP 開發並部署到他們的產品中。它是一種 IP，而不是緩衝晶片類型的產品。

But I believe it's still a little bit early in terms of that adoption, is that right?

但我認為就採用而言還為時過早，對嗎？

Yes. And I think you'll start to see some of the revenue growth probably starting in next year related to that, not as much this year. I think some of these initiatives that we talk about, both on the memory side and the security side, like the announcements that we had earlier this week that we've mentioned on security, really helped fueled our future growth.

是的。我認為你會開始看到一些收入成長可能從明年開始與此相關，而不是今年那麼多。我認為我們在記憶體方面和安全性方面討論的一些舉措，例如我們本週早些時候提到的有關安全的公告，確實有助於推動我們未來的成長。

Fair enough. And then on the record number of licensing deals that you signed this quarter, are these things that are a long time in coming? Or are these deals that are conceived then executed within the same quarter?

很公平。然後，根據您本季簽署的創紀錄數量的授權協議，這些事情是否需要很長時間才能實現？或者這些交易是在同一季度內構思並執行的嗎？

So very rarely are any of these deals conceived of and executed in terms of the first quarter. Typically, what we have is we have scores, I should say, dozens of different partners that are under license, Mark. And what happens is those licenses usually extend for a certain term. So what happens is that usually about a year before the end of the term, we start engaging with our partner in terms of renewing that agreement. The reason that we do have any seasonality in our business is just we just happen to have more agreements signed in Q2 than we do in other quarters. But I think overwhelmingly, what you're seeing is for us to continue to renew at a very favorable rate. What you're also seeing is that we are able to add new licensees as well. So those are usually negotiations that are not in quarters but usually longer, sometimes 1 year or 2 years in the making. And one of the things that's been really pleasing to see is that you've seen us be able to expand licensing from not just the DRAM industry but also into broader memory or semis in terms of SoC or FPGA. And you've also seen us be able to expand our footprint from a licensing perspective on the security side as well. So our licensing program goes very well. It's very strong. And between that and our cores, I expect our licensing cores to be roughly flat and continue to serve as the backbone of our company.

因此，這些交易很少是在第一季構思和執行的。通常，我們擁有的是，我應該說，我們有幾十個不同的獲得許可的合作夥伴，馬克。所發生的情況是這些許可證通常會延長一定期限。因此，通常會在任期結束前約一年，我們開始與合作夥伴就續約協議進行接觸。我們的業務確實存在季節性的原因只是我們在第二季簽署的協議比其他季度多。但我認為絕大多數情況下，您所看到的是我們繼續以非常優惠的價格續訂。您還看到的是，我們也能夠新增新的被授權人。因此，這些談判通常不是以季度為單位進行的，而是通常會持續更長的時間，有時甚至持續一年或兩年。令人非常高興的一件事是，您看到我們不僅能夠將許可範圍從 DRAM 行業擴展到更廣泛的內存或半成品（SoC 或 FPGA）。您也看到我們能夠從安全方面的授權角度擴大我們的足跡。所以我們的許可計劃進展順利。它非常強大。在這與我們的核心之間，我預計我們的授權核心將大致持平，並繼續作為我們公司的支柱。

At this time, there are no further questions. This concludes the question-and-answer session. I would now like to turn the conference back over to the company.

目前，沒有其他問題了。問答環節到此結束。我現在想將會議轉回公司。

So as you can see, we continue to demonstrate our leadership and execution across all of our products and deliver profitable growth across the company.

正如您所看到的，我們繼續在所有產品中展示我們的領導力和執行力，並在整個公司範圍內實現盈利增長。

Thank you for your continued interest and time, and have a good day.

感謝您持續的關注和時間，祝您有美好的一天。

Thank you. This now concludes today's conference.

謝謝。今天的會議到此結束。