Rambus Inc (RMBS) 2019 Q1 法說會逐字稿

Welcome to the Rambus First Quarter and FY '19 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 第一季和 2019 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。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, Jesse, and welcome to the Rambus First Quarter 2019 Results Conference Call. I'm Rahul Mathur, CFO, and on the call with me today is Luc Seraphin, our CEO.

謝謝 Jesse，歡迎參加 Rambus 2019 年第一季業績電話會議。我是財務長 Rahul Mathur，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 9084526 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 9084526 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 Q2 2019 and beyond, prospects, products and investment strategies, timing of expected product launches, demand for existing and newly acquired technologies, the growth opportunities of the various markets we serve and the effects of ASC 606 on reported revenue 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的財務指引（包括2019 年第二季及以後）、前景、產品和投資策略、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的前瞻性陳述我們提供服務以及 ASC 606 對報告收入的影響等。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。

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've 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: Luc will start with an overview of the business; I will discuss our financial results, including our guidance for future periods; and then we'll end with Q&A.

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

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

我現在將把電話轉給 Luc，以提供本季的概述。呂克？

Thanks, Rahul, and good afternoon, everyone. Rambus executed well in the first quarter with solid results in line with expectations. We delivered total revenue of $48.4 million and strengthened our balance sheet, generating $28.8 million in cash from operations.

謝謝拉胡爾，大家下午好。Rambus 第一季表現良好，業績符合預期。我們實現了 4,840 萬美元的總收入，並強化了我們的資產負債表，從營運中產生了 2,880 萬美元的現金。

As we outlined on the last call, our top priorities as a company center around 3 primary objectives to drive long-term growth and profitability. First, we have refocused our product portfolio, research and patent development on our core strength in semiconductor, delivering high-speed interface and secure silicon IP as well as memory buffer chips to leading chip and system manufacturers worldwide. We target performance-driven, high-growth markets, including data center, networking, artificial intelligence, machine learning, IoT and automotive where demand for data and security are at their highest. The second strategic objective is to optimize the company for operational efficiency and profitability, leveraging the overlap in our ecosystem of customers, partners and influencers across our areas of focus. And finally, the third objective is to leverage our demonstrated ability to generate cash and reinvest in ourselves through both organic and inorganic growth to amplify our market and technology positions. These 3 strategic priorities set the foundation for the company, fuel growth and strengthen our industry leadership position.

正如我們在上次電話會議中所概述的那樣，作為一家公司，我們的首要任務圍繞著推動長期成長和獲利的 3 個主要目標。首先，我們重新將產品組合、研究和專利開發的重點放在半導體領域的核心優勢上，為全球領先的晶片和系統製造商提供高速介面和安全矽IP以及記憶體緩衝晶片。我們的目標是效能驅動的高成長市場，包括資料中心、網路、人工智慧、機器學習、物聯網和汽車，這些市場對資料和安全性的需求最高。第二個策略目標是利用我們重點領域的客戶、合作夥伴和影響者生態系統的重疊，優化公司的營運效率和獲利能力。最後，第三個目標是利用我們所展示的創造現金的能力，並透過有機和無機成長對自己進行再投資，以擴大我們的市場和技術地位。這三項策略重點為公司奠定了基礎，推動了成長並鞏固了我們的產業領導地位。

We have made solid progress towards these objectives in the first quarter, augmenting our product offerings, securing new design wins and systematically increasing our market share. Q1 was another positive quarter for our server DIMM chipset business with revenue up nearly 40% from the same period last year. We continue to increase the number of OEM and data center qualifications, making steady gains in our DDR4 buffer chip market share. We believe our improved market position will outweigh any softness in the memory market due to the near-term inventory corrections and remain confident in a revenue range of $50 million to $70 million for the buffer chip business in 2019.

第一季度，我們在實現這些目標方面取得了堅實的進展，擴大了我們的產品範圍，贏得了新的設計，並系統地增加了我們的市場份額。第一季是我們伺服器 DIMM 晶片組業務的另一個積極季度，營收比去年同期成長近 40%。我們不斷增加OEM和資料中心資質數量，DDR4緩衝晶片市場佔有率穩定提升。我們相信，我們市場地位的改善將抵消近期庫存調整導致的記憶體市場疲軟的影響，並對 2019 年緩衝晶片業務的收入範圍在 5,000 萬美元至 7,000 萬美元之間保持信心。

In addition to the steady growth in DDR4, we maintained our first mover position for next-generation DDR5 server DIMM chips, shipping samples at the top-end speeds for both the RCD and DB chips. We're well positioned in the early bring up and validation of DDR5 DIMM and continue to have strong collaboration with the memory vendors as well as the broader ecosystem.

除了 DDR4 的穩定成長之外，我們還保持了下一代 DDR5 伺服器 DIMM 晶片的領先地位，以高端速度交付了 RCD 和 DB 晶片的樣品。我們在 DDR5 DIMM 的早期部署和驗證中處於有利地位，並繼續與記憶體供應商以及更廣泛的生態系統保持密切合作。

Our high-speed IP Core business had a tremendous quarter, bringing in record revenue and multiple new SoC design wins for data center, networking and artificial intelligence. We closed a Tier 1 SoC customer that included several ASIC designs and remain on the trajectory of approximately 50% compounded annual growth rate that has been set over the past few years. I am pleased with the addition of our 32-gig and 112-gig SerDes PHY to our product portfolio. These high-performance solutions expand our customer engagement and strengthen our position in the fast-growing 5G infrastructure and 400 gig and 800 gig networking markets.

我們的高速 IP 核能業務在本季度表現出色，帶來了創紀錄的收入，並在資料中心、網路和人工智慧方面贏得了多個新的 SoC 設計。我們關閉了一個包含多種 ASIC 設計的一級 SoC 客戶，並保持了過去幾年設定的約 50% 複合年增長率的軌跡。我很高興在我們的產品組合中添加了 32g 和 112g SerDes PHY。這些高效能解決方案擴大了我們的客戶參與度，並鞏固了我們在快速成長的 5G 基礎設施以及 400 GB 和 800 GB 網路市場中的地位。

Moving over to our Cryptography business, the importance of semiconductor device level security continues to grow in the industry. We saw increased traction and opportunities for our silicon -- for our secure silicon IP with a new design win at a major OEM and expanded agreements for our provisioning services. We continue to build momentum for our CryptoManager Root of Trust in our key verticals of artificial intelligence and data centers.

轉向我們的密碼業務，半導體設備級安全的重要性在行業中持續增長。我們看到了我們的晶片的吸引力和機會的增加——我們的安全晶片 IP 憑藉新的設計贏得了一家主要 OEM 的青睞，並擴大了我們的配置服務協議。我們繼續在人工智慧和資料中心的關鍵垂直領域為 CryptoManager 信任根打造動力。

In summary, we executed well in Q1 to deliver a solid quarter. We have renewed our focus on our core areas of expertise with improved operational efficiency and are seeing success in our target markets. I am pleased with our continued growth in product revenue to increase market share despite near-term macroeconomic and industry headwinds. Our commitment to innovation and advanced product development will propel our industry leadership and fuel ongoing cash generation.

總而言之，我們在第一季表現良好，實現了穩健的季度業績。我們重新專注於我們的核心專業知識領域，提高了營運效率，並在目標市場取得了成功。儘管近期宏觀經濟和產業面臨不利因素，但我對我們產品收入的持續成長以及市場份額的持續成長感到高興。我們對創新和先進產品開發的承諾將推動我們的行業領導地位並推動持續的現金創造。

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

接下來，我將把電話轉回給拉胡爾，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 6. As Luc mentioned, we continue to make progress in our product businesses and delivered solid financial results in line with our revenue and earnings expectations. As you know, we've chosen to adopt 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. Our reported revenue amounts discussed herein are reflected under ASC 606. As a result, any comparison between first quarter 2019 results under ASC 606 and prior results under ASC 605 is not the best way to track the company's progress.

謝謝，盧克。我想先介紹一下我們本季的財務表現。讓我先介紹投影片 6 中的一些要點。正如 Luc 所提到的，我們的產品業務繼續取得進展，並交付了符合我們收入和盈利預期的穩健財務業績。如您所知，我們選擇採用修改後的追溯法採用 ASC 606，該方法不會重述前期，而是透過留存收益作為期初資產負債表調整來計算採用的累積效應。我們在此討論的報告收入金額反映在 ASC 606 下。因此，將 ASC 606 下的 2019 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。

Now that we are through our transition period, we will no longer be presenting results as if we continue to recognize revenue under the old standard. However, we will continue to provide additional operational metrics such as licensing billings to give our investors better insight into our operational performance.

現在我們已經度過了過渡期，我們將不再像繼續按照舊準則確認收入那樣呈現結果。但是，我們將繼續提供額外的營運指標，例如授權帳單，以便我們的投資者更了解我們的營運績效。

We delivered revenue of $48.4 million and non-GAAP diluted net loss per share of $0.08. We also delivered licensing billing of $75.4 million, in line with our expectations. We ended the quarter with cash, cash equivalents and marketable securities of $305.9 million, up $28.1 million from the previous quarter, due primarily to cash from operations of $28.8 million. 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.

我們的營收為 4,840 萬美元，非 GAAP 攤薄後每股淨虧損為 0.08 美元。我們也交付了 7,540 萬美元的授權費用，符合我們的預期。本季末，我們的現金、現金等價物和有價證券為 3.059 億美元，比上一季增加 2,810 萬美元，主要是由於營運現金為 2,880 萬美元。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，並專注於記憶體和安全性。

Now let me talk you through some revenue details on Slide 7. Revenue for the first quarter was $48.4 million, higher than our expected range of $41 million to $47 million due to the structure of licensing agreements signed in the quarter. As we've mentioned previously, ASC 606 has a material difference in the timing of revenue recognition for our fixed fees licensing arrangements. Our licensing business continues to perform well. It is the foundation of our success and remains core to our initiatives in both our memory and security businesses and will continue to generate cash in years to come.

現在讓我向您介紹幻燈片 7 上的一些收入細節。第一季的收入為 4840 萬美元，由於本季度簽署的許可協議的結構，高於我們預期的 4100 萬美元至 4700 萬美元的範圍。正如我們之前提到的，ASC 606 在我們的固定費用許可安排的收入確認時間上存在重大差異。我們的授權業務持續表現良好。它是我們成功的基礎，仍然是我們記憶體和安全業務舉措的核心，並將在未來幾年繼續產生現金。

Royalty revenue for the first quarter was $24.8 million, while licensing billings was $75.4 million. The difference between licensing billings and royalty revenue primarily relates to timing as we don't always recognize revenue at the same quarter we bill our customers.

第一季的版稅收入為 2,480 萬美元，授權費用為 7,540 萬美元。授權帳單和特許權使用費收入之間的差異主要與時間安排有關，因為我們並非總是向客戶開立帳單的同一季度確認收入。

Going into additional detail. Our Memory and Interface revenue was $34.5 million and our security business revenue was $13.9 million. As expected, revenue for our payments and ticketing business was roughly $7 million for the quarter. We continue to expect that business to grow to $35 million to $40 million in 2019. As we announced last year, we're evaluating strategic options for that business, but it's still currently part of our operating results. We expect this business to be roughly breakeven in 2019, so regardless of which strategic options we choose, if any, I don't expect a significant impact to the company's overall profitability in 2019.

進入更多細節。我們的記憶體和介面收入為 3,450 萬美元，安全業務收入為 1,390 萬美元。如預期，本季我們的支付和票務業務收入約為 700 萬美元。我們仍預期 2019 年該業務將成長至 3,500 萬至 4,000 萬美元。正如我們去年宣布的那樣，我們正在評估該業務的戰略選擇，但它目前仍然是我們經營業績的一部分。我們預計該業務在2019年將大致實現盈虧平衡，因此無論我們選擇哪種策略選擇（如果有的話），我預計不會對公司2019年的整體獲利能力產生重大影響。

Let me walk you through our non-GAAP income statement on Slide 8. Along with our solid revenue performance in Q4, we met our profitably 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 $67.3 million, slightly above our expectations, primarily related to increased facilities costs directly offset by a corresponding decrease in interest expense as a result of the adoption of ASC 842. We ended the quarter with headcount of 785, roughly flat from 796 in the previous quarter. We recorded $5.7 million of interest income related to the significant financing components from our fixed fee patent and technology licensing arrangements 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 8 上我們的非 GAAP 損益表。除了我們第四季穩健的營收表現外，我們還實現了非 GAAP 基礎上的獲利目標。本季的收入成本加上營運費用或我們所說的總營運費用為 6,730 萬美元，略高於我們的預期，主要與設施成本的增加直接被利息費用的相應減少所抵銷有關。透過 ASC 842。本季結束時，我們的員工人數為 785 人，與上一季的 796 人大致持平。我們記錄了 570 萬美元的利息收入，這些利息收入與固定費用專利和技術許可安排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收入。

We incurred $0.6 million of interest expense primarily related to the convertible notes we issued in Q4 2017. This was offset by incremental interest income related to the return on our cash portfolio. After adjusting for noncash interest expense on our convertible notes, this resulted in non-GAAP interest and other income for the first quarter of $6.8 million. Excluding the interest income related to the significant financing component related to ASC 606, this would have been $1.1 million.

我們產生了 60 萬美元的利息費用，主要與我們在 2017 年第四季發行的可轉換票據有關。這被與我們現金投資組合回報相關的增量利息收入所抵銷。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 680 萬美元。不包括與 ASC 606 相關的重要融資部分相關的利息收入，這將為 110 萬美元。

Using the assumed flat rate of 24% for non-GAAP pretax loss, non-GAAP net loss for the quarter was $9.2 million or a diluted net loss of $0.08 a share.

使用假設的非 GAAP 稅前虧損 24% 的統一比率，該季度的非 GAAP 淨虧損為 920 萬美元，或攤薄後淨虧損為每股 0.08 美元。

Now let me turn to the balance sheet details on Slide 9. We are very pleased with the strength of our balance sheet. Cash, cash equivalents and marketable securities totaled $305.9 million, up $28.1 million from the previous quarter due primarily to cash from operations of $28.8 million. We expect to maintain our ability to generate substantial cash from operations in 2019. This will be an important metric to monitor under ASC 606. At the end of Q1, we had contract assets worth $629.4 million, which reflects the net present value of unbilled AR related to licensing arrangements for which the company has no future performance obligations. I expect this number to continue to trend down as we bill and collect for these contracts. It's important to note that this metric doesn't represent the entire value of our existing licensing arrangements as several customers have royalty-based agreements that allow us to recognize revenue each quarter under ASC 606.

現在讓我談談投影片 9 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 3.059 億美元，比上一季增加 2810 萬美元，主要是由於營運現金 2880 萬美元。我們預計 2019 年將維持從營運中產生大量現金的能力。這將是 ASC 606 下監控的重要指標。截至第一季末，我們的合約資產價值 6.294 億美元，這反映了與公司沒有未來履約義務的許可安排相關的未開票 AR 的淨現值。我預計隨著我們為這些合約開立帳單和收取費用，這個數字將繼續下降。值得注意的是，該指標並不代表我們現有授權安排的全部價值，因為一些客戶簽訂了基於特許權使用費的協議，使我們能夠根據 ASC 606 每個季度確認收入。

As a reminder, Rambus has invested in technology R&D throughout its history, and our patent portfolio is foundational to our industry. As part of our strategic planning cycle, we have renewed our focus in investment on patent generation with an emphasis on key technology challenges facing the industry in the years to come.

謹此提醒，Rambus 在其整個歷史中一直投資於技術研發，我們的專利組合是我們產業的基礎。作為我們策略規劃週期的一部分，我們重新專注於專利生成投資，並專注於產業未來幾年面臨的關鍵技術挑戰。

Our patents provide a strong platform for our investments in product development and innovation, and we believe investing strategically in this area positions us to deliver long-term profitable growth. As we look ahead to our significant patent renewals in the future, we should note that while our typical licensing agreements last 5 to 10 years, our patents are valid for 20 years. Based on our strong record -- track record, we remain confident in our ability to continue to renew with our partners on favorable economic terms in the future.

我們的專利為我們在產品開發和創新方面的投資提供了強大的平台，我們相信在這一領域進行策略性投資將使我們能夠實現長期的獲利成長。當我們展望未來的重大專利更新時，我們應該注意到，雖然我們的典型授權協議持續 5 至 10 年，但我們的專利有效期為 20 年。基於我們良好的業績記錄，我們對未來繼續以有利的經濟條件與合作夥伴續約的能力充滿信心。

First quarter CapEx was $1.9 million and depreciation was $2.8 million. Looking forward, I expect roughly $3 million of CapEx for the second quarter and roughly $11 million for the full year of 2019. I also expect depreciation of roughly $3 million for the second quarter and roughly $12 million for the full year of 2019. Overall, we have a strong balance sheet with limited debt and expect to continue to generate strong cash from operations in the future.

第一季資本支出為 190 萬美元，折舊為 280 萬美元。展望未來，我預計第二季的資本支出約為 300 萬美元，2019 年全年的資本支出約為 1,100 萬美元。我還預計第二季折舊約為 300 萬美元，2019 年全年折舊約為 1,200 萬美元。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 second quarter on Slide 10. As a reminder, our forward-looking guidance reflects our current best estimates and our actual results could differ materially from what I'm about to review. Going forward, we will only provide financial outlook under ASC 606. Future revenue under ASC 606 will be volatile from financial 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 of our business as well as to provide the best economic structure.

現在讓我談談幻燈片 10 上的第二季指引。提醒一下，我們的前瞻性指導反映了我們目前的最佳估計，我們的實際結果可能與我即將審查的結果有重大差異。展望未來，我們將僅根據 ASC 606 提供財務前景。由於我們授權安排的時間安排和結構，ASC 606 規定的未來收入將在各個財務期間波動。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提供最佳的經濟結構。

To offer additional transparency, we have 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. As you see in the supplemental information we provided on Slide 17 of our earnings deck, licensing billings closely correlates with what we had historically reported as royalty revenue under ASC 605. We'll continue to provide licensing billings as another operational metric to help our investors understand the underlying performance of our company.

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內向我們的許可客戶開出的發票金額。正如您在損益表投影片 17 上提供的補充資訊中所看到的那樣，授權費用與我們歷史上根據 ASC 605 報告的特許權使用費收入密切相關。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 ASC 606, we expect revenue in the second quarter between $57 million and $63 million. We expect royalty revenue between $25 million and $31 million. We also expect licensing billings between $61 million and $67 million. We expect Q2 non-GAAP total operating expenses, which includes COGS, to be between $69 million and $65 million, flat to Q1 spend. Over the course of 2018, we've kept operating expenses roughly flat as revenue grew, providing leverage to our financial model. I expect total operating expenses, which includes COGS related to our buffer chip business, to grow through 2019 as we ship more product. We continue to expect that our buffer chip business will grow to $50 million to $70 million in 2019.

儘管如此，根據 ASC 606，我們預計第二季的營收將在 5,700 萬美元至 6,300 萬美元之間。我們預計特許權使用費收入將在 2,500 萬美元至 3,100 萬美元之間。我們也預計許可費用在 6,100 萬美元至 6,700 萬美元之間。我們預計第二季非公認會計準則總營運支出（包括銷貨成本）將在 6,900 萬美元至 6,500 萬美元之間，與第一季支出持平。2018 年，隨著收入的成長，我們的營運支出基本上持平，這為我們的財務模型提供了槓桿作用。我預計隨著我們出貨更多產品，總營運費用（包括與緩衝晶片業務相關的銷貨成本）將在 2019 年成長。我們繼續預計我們的緩衝晶片業務將在 2019 年成長至 5,000 萬至 7,000 萬美元。

However, as we've mentioned in prior earnings calls, we have limited visibility due to macroeconomic issues, inventory in the supply chain and trade concerns with China. These factors could cause softness in buffer chip shipments. While we cannot control the macroeconomic environment, we remain focused on our execution and are very pleased with our continued market share gain in our buffer chip business.

然而，正如我們在先前的財報電話會議中所提到的，由於宏觀經濟問題、供應鏈庫存以及與中國的貿易問題，我們的能見度有限。這些因素可能導致緩衝晶片出貨量疲軟。雖然我們無法控制宏觀經濟環境，但我們仍然專注於我們的執行力，並對緩衝晶片業務的市佔率持續成長感到非常高興。

Under ASC 606, non-GAAP operating results for the second quarter is expected to be between a loss of $12 million and $2 million. For non-GAAP interest and other income and expense, which includes -- excuse me, which excludes interest income related to ASC 606, we would have expected $0.8 million in income, which includes $0.6 million of interest expense related to the notes due in 2023.

根據 ASC 606，第二季非 GAAP 營運業績預計將虧損 1,200 萬美元至 200 萬美元。對於非 GAAP 利息和其他收入和支出，包括——對不起，不包括與 ASC 606 相關的利息收入，我們預計收入為 80 萬美元，其中包括與 2023 年到期票據相關的 60 萬美元利息支出。

Based on the new tax legislation passed at the end of 2017, we expect our pro forma tax rate in 2019 to remain consistent with our 2018 pro forma tax rate of roughly 24%. The 24% is higher than the new statutory rate of 21% primarily due to higher taxes 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. We expect non-GAAP taxes to be between a benefit of $3 million and $1 million in Q2. We expect our Q2 share count to be roughly 111 million basic and diluted shares outstanding. This leads you to between a non-GAAP loss per share of $0.08 and $0.01 for the quarter.

根據 2017 年底通過的新稅法，我們預計 2019 年的預估稅率將與 2018 年約 24% 的預期稅率保持一致。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收較高。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。我們預計第二季非 GAAP 稅收收益將在 300 萬美元至 100 萬美元之間。我們預計第二季的流通股基本股和稀釋股約為 1.11 億股。這導致本季非 GAAP 每股虧損為 0.08 美元至 0.01 美元。

While we do not issue annual guidance as we have disclosed previously, this year, we have structural step downs in several of our long-term licensing agreements that will impact our 2019 revenue. In balance, we expect the growth we see in our product programs to offset these structural step downs. Therefore, we remain comfortable with current consensus, analyst expectations on the top and bottom line for each quarter of 2019. As previously disclosed, we are reviewing our strategic options for our payments and ticketing business and may make a financial update in the future depending on the action we choose if any.

雖然我們沒有像之前披露的那樣發布年度指引，但今年我們的幾項長期許可協議出現了結構性下降，這將影響我們 2019 年的收入。總的來說，我們預計產品計劃的成長將抵消這些結構性下降。因此，我們對目前的共識以及分析師對 2019 年每季的營收和利潤的預期仍然感到滿意。如同先前所揭露的，我們正在審查我們的支付和票務業務的策略選擇，並可能在未來根據我們選擇的行動（如果有）進行財務更新。

Through our focus on our core business, we also expect roughly flat cash flow in 2019 while continuing to invest strategically in our growing product programs. 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 ASC 606 added a level of complexity to our financial reporting, it's important to reiterate that the underlying financial strength of our business remains strong, reflected in the demonstrated ability to generate cash.

透過專注於核心業務，我們也預期 2019 年現金流大致持平，同時繼續對不斷成長的產品計畫進行策略性投資。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 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，這反映在所證明的產生現金的能力上。

In closing, we are refocusing our product portfolio around Rambus' core strength in the semiconductor industry, improving our operational efficiency and profitability, generating solid cash from operations and using our strong balance sheet to support our strategic initiatives. We continue to focus on our growth drivers and are well positioned for long-term profitable growth.

最後，我們將圍繞Rambus 在半導體行業的核心優勢重新調整我們的產品組合，提高我們的營運效率和盈利能力，從營運中產生穩定的現金，並利用我們強大的資產負債表來支持我們的戰略舉措。我們繼續專注於成長動力，並為長期獲利成長做好準備。

With that, I'll turn the call back to our operator, Jesse, 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 Jesse，開始問答。我們可以問第一個問題嗎？

(Operator Instructions) Your first question comes 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。

So I'm trying to figure out how the 1Q number would look if I compare it to the 4Q as a 605 number, and I'm getting a revenue for 1Q that's just under $99 million and EPS of $0.22 if I use $1 million of interest income. I wanted to understand if that was in the ballpark of where the numbers would have come out.

因此，我試圖弄清楚，如果將605 數字與第四季度進行比較，第一季的數字會是什麼樣子，如果我使用100 萬美元，我第一季的收入略低於9,900 萬美元，每股收益為0.22 美元。利息收入。我想知道這是否在數字的大致範圍內。

So Suji, if I have it correctly, what you're doing is you're substituting licensing billings for royalty revenue to do that math and running it through the P&L.

所以 Suji，如果我沒理解錯的話，你所做的就是用許可費用代替特許權使用費收入來進行數學計算並通過損益表進行計算。

Correct.

正確的。

Yes. I think if I do that math, I get to the same $99 million, but I think we round to -- would round to $0.23. But of course, those are non-GAAP numbers. We have to use ASC 606.

是的。我想如果我這樣算的話，我會得到同樣的 9900 萬美元，但我認為我們四捨五入到 0.23 美元。但當然，這些都是非公認會計原則的數字。我們必須使用 ASC 606。

Understood. I just wanted to understand if I was in the ballpark. And then just for the guidance, Rahul, real quick. I get to [$96 million] (corrected by the company after the call) and $0.20, which is consistent with what consensus was. I just want to make sure that was also in the ballpark as well.

明白了。我只是想知道我是否在球場上。然後只是為了指導，拉胡爾，很快。我得到了 [9600 萬美元]（公司在電話會議後更正）和 0.20 美元，這與共識一致。我只是想確保這也在大致範圍內。

Yes. Suji, if I were to do the math, I'd get the same number.

是的。Suji，如果我算一下，我會得到同樣的數字。

Okay. Great. Appreciate that. And then as I look at the memory buffer business and you've guided $50 million to $70 million here, I just want to understand. Given the headwinds, I know that visibility is very difficult, but given the headwinds here is -- versus 3 months ago, if you were tracking toward the middle of the range before, are you tracking more to the low end now? Or if you don't have that level of clarity, what are the puts and takes that will put you at the high end versus the low end now? Is it just macro? Is it also some customer uptake? Any color there would be helpful.

好的。偉大的。感謝。然後，當我研究記憶體緩衝區業務時，您已經指導了 5000 萬至 7000 萬美元，我只是想了解一下。考慮到逆風，我知道能見度非常困難，但考慮到這裡的逆風是 - 與 3 個月前相比，如果您之前追踪到範圍的中間，那麼現在您是否會更多地追踪到低端？或者，如果您沒有那麼清晰，那麼現在哪些看跌期權和看跌期權會讓您處於高端與低端？只是宏嗎？是否也有一些客戶吸收？任何顏色都會有幫助。

Suji, Luc. The -- first of all, we remain confident about the memory market in the long run. We continue to believe that this market is going to continue to grow at a 20% rate over the next 3 years. Now what's happening this year is that we have an inventory correction that is hitting the market. Our customers' customers overbuilt last year, and now they are living off of their inventory. So this being said, we continue to grow. As I said earlier, we grew 40%, nearly 40% compared to the same quarter last year. And that's mainly due to the fact that we've won a lot of designs on the current generation of Intel platforms Skylake, and we continue to win designs on the next-generation platform. So despite the headwind in the market, which we think are going to be limited for the first half of this year, we continue to gain share and the impact is somewhat limited to us. So we maintain our guidance of $50 million to $70 million this year. The second half is going to tell us where we stand in that guidance. Things can turn very quickly.

蘇吉、呂克.首先，從長遠來看，我們對記憶體市場仍然充滿信心。我們仍然相信這個市場將在未來 3 年內繼續以 20% 的速度成長。今年發生的事情是，我們正在對市場進行庫存調整。我們客戶的客戶去年過度建造，現在他們靠庫存過活。話雖這麼說，我們仍在繼續成長。正如我之前所說，我們成長了 40%，與去年同期相比成長了近 40%。這主要是因為我們已經贏得了當前一代英特爾平台 Skylake 上的大量設計，並且我們將繼續贏得下一代平台上的設計。因此，儘管市場面臨逆風（我們認為今年上半年的影響有限），但我們的份額仍在繼續增長，而且對我們的影響在一定程度上是有限的。因此，我們今年維持 5,000 萬至 7,000 萬美元的指導。下半部分將告訴我們我們在這一指導中的立場。事情可能會很快發生轉變。

Okay. That's very helpful, Luc. And then lastly, I know that you gave some color on the payment and ticketing business and the process there. Appreciate all of that. Just can you give a sense of what the market appetite is for that asset just to give a sense of how quickly this may or may not get done, and obviously, the proceeds come in. If you're thinking about inorganic activity more aggressively, if there's a target-rich environment out there or any color on those 2 topics would be helpful as well.

好的。這非常有幫助，盧克。最後，我知道您對支付和票務業務及其流程進行了一些闡述。感謝這一切。您能否了解市場對該資產的興趣是什麼，只是為了了解這可能或可能不會完成的速度，顯然，收益會進來。如果您更積極地考慮無機活動，如果存在目標豐富的環境，或者這兩個主題的任何顏色也會有所幫助。

Thanks. Yes, as we said earlier, we are in process to look for these strategic options for the payment and ticketing group, and that's going well. As we said earlier, we expect to have more clarity before the end of the quarter. So things are going according to plan. Now to your other question about M&A activity, this is central to our thinking. We generate a lot of cash. As we just said, we generated $28.8 million of cash from operations in the first quarter. So we're looking at M&A opportunities, but we want to make sure that they fall into our strategic focus as we described it over the last 2 quarters and going to make sure that they are operationally and financially viable for us. So that's a key area of focus for myself and for the management team.

謝謝。是的，正如我們之前所說，我們正在為支付和票務集團尋找這些策略選擇，進展順利。正如我們之前所說，我們預計在本季末之前會更加明確。所以事情正在按計劃進行。現在回答你關於併購活動的另一個問題，這也是我們思考的核心。我們產生大量現金。正如我們剛才所說，我們第一季的營運產生了 2880 萬美元的現金。因此，我們正在尋找併購機會，但我們希望確保它們落入我們在過去兩個季度所描述的策略重點，並確保它們在營運和財務上對我們來說是可行的。因此，這是我自己和管理團隊關注的關鍵領域。

Your next question comes from John Pitzer with Crédit Suisse.

您的下一個問題來自瑞士信貸銀行的約翰‧皮策 (John Pitzer)。

This is Ada calling in for John. Can you maybe talk about -- provide additional color in your licensing billings versus your royalty revenues and what the delta there looks like over time?

這是艾達打電話給約翰。您能否談談——在您的許可賬單與您的特許權使用費收入之間提供更多的信息，以及隨著時間的推移，其中的增量是什麼樣的？

Sure. Absolutely. This is Rahul. With the earnings presentation that we provided, what we actually provided, if you look at Slide 17 of that presentation, and what we show is that comparison between revenue and licensing billings. And what you see, for example, for fiscal 2018 and I think in some of our historical presentations, we've shown you the numbers for prior years as well. And if we just look at fiscal 2018, what you see, that our total revenue under ASC 606 was $231 million. Had we reported revenue under ASC 605 for 2018, our revenue would have been $401.1 million, right? So that's a delta of about $170 million or so. Now if you look at our royalty revenue under ASC 606, that royalty revenue under ASC 606 would have been about $130 million, about $130.45 million. If you look at our royalty revenue under ASC 605, that would have been about $303 million, so substantially higher. Now what we show on our reconciliation also is then royalty revenue compared to licensing billings for 2018. So as I mentioned earlier, royalty revenue under 2018 was $130.45 million, whereas the licensing billings under -- for 2018 was $301.2 million. So historically, our licensing billings has compared very nicely to what we've reported as royalty revenue under ASC 605. And what I see a lot of our analyst investors are doing is simply using that as a better proxy for our actual cash flow because I think when most folks plug that in, the numbers they get in their models in terms of operating results more similarly match to what we report for cash flow operations.

當然。絕對地。這是拉胡爾。透過我們提供的收益演示，我們實際提供的內容，如果您查看該演示的幻燈片 17，我們展示的是收入和許可賬單之間的比較。例如，您所看到的 2018 財年，我認為在我們的一些歷史演示中，我們也向您展示了前幾年的數字。如果我們只看 2018 財年，您會發現我們在 ASC 606 下的總收入為 2.31 億美元。如果我們根據 ASC 605 報告 2018 年的收入，我們的收入將為 4.011 億美元，對嗎？因此，增量約為 1.7 億美元左右。現在，如果你看看我們在 ASC 606 下的特許權使用費收入，ASC 606 下的特許權使用費收入約為 1.3 億美元，約 1.3045 億美元。如果您查看 ASC 605 下我們的特許權使用費收入，您會發現該收入約為 3.03 億美元，因此要高得多。現在，我們在對帳中顯示的也是與 2018 年授權帳單相比的特許權使用費收入。正如我之前提到的，2018 年的特許權使用費收入為 1.3045 億美元，而 2018 年的授權費用為 3.012 億美元。因此，從歷史上看，我們的授權帳單與我們根據 ASC 605 報告的特許權使用費收入相比非常好。我看到我們的許多分析師投資者所做的只是使用它作為我們實際現金流的更好代理，因為我認為當大多數人將其插入時，他們在模型中獲得的營運結果數字更相似我們報告的現金流量營運狀況。

Got it. And can you talk about your OpEx trajectory through the remainder of the year? I know you talked about continuing to spend on the product line -- on the products.

知道了。您能談談今年剩餘時間您的營運支出軌跡嗎？我知道您談到了繼續在產品線上投入資金。

Yes. We'll continue to make investments in terms of where we see from a product perspective. I think what I talked about right now for Q2 was guidance of OpEx, which was roughly flat from where we had in Q1. And what you see there is that as we grow in things like buffer chip, then what you'll see is our COGS related to buffer chips starts to increase. I think as you look over the course of the year, what you'll see is total OpEx, operating expenses, be roughly flat or maybe slightly down because what we'll see is we'll see COGS grow from buffer chip as buffer chip grow, but then you'll see some other costs out, so namely the Q1 spike that we typically get in terms of terms of FICA and social security and the other items as well. But what I see from a total operating cost and expense, it's something roughly flat, maybe a little bit down over the course of the year.

是的。我們將繼續從產品角度進行投資。我認為我現在談論的第二季度是營運支出的指導，與第一季的情況大致持平。你會看到，隨著我們在緩衝晶片等領域的發展，你會看到我們與緩衝晶片相關的 COGS 開始增加。我認為，當你回顧這一年的過程時，你會看到總營運支出、營運費用大致持平或略有下降，因為我們將看到 COGS 從緩衝晶片成長為緩衝晶片成長，但隨後你會看到一些其他成本的下降，即我們通常在FICA 和社會安全以及其他項目方面出現的第一季高峰。但從總營運成本和支出來看，這一數字大致持平，甚至可能在這一年中略有下降。

Your next question comes 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 on licensing billing guidance declining from $75.4 million to $61 million to $67 million. Is that all driven by the licensing step down that you talked about? Or are there other factors that may impact that number from quarter-to-quarter? And maybe a follow-up to that. How should we think about the next couple of quarters? Are the step downs can be reset and -- in Q3? Or is it going to continue in Q3 and Q4?

我的第一個問題是許可計費指引從 7,540 萬美元下降到 6,100 萬美元，再到 6,700 萬美元。這都是由您談到的許可證逐步減少所驅動的嗎？或者還有其他因素可能會影響每季的數字嗎？也許是後續行動。我們該如何看待接下來的幾季？降級是否可以在第三季重置？還是會在第三季和第四季繼續？

Sidney, that's a great question. What I would tell you is that as we've been implementing ASC 606, what we've been doing is, for new contracts, we've been structuring them with our partners in a way that allows us to take revenue ratably over the course of the contract. And so what you'll see is that as some of these roll on, then that difference between licensing billings and royalty revenue will change on a quarter-to-quarter basis. As you noted, we do have a step down in multiple contracts over the course of the year, and so part of that difference is reflected there as well. But I think the real difference quarter-over-quarter is really more just about the structure of different contracts and how they come up over the course of the year. What we do note and I talked about this previously is that just from a seasonality perspective, Q2 is usually the lowest quarter in the year for us just in terms of how we've historically done our licensing and renewals. But I wouldn't read too much into that change. I think the combination of the licensing billings as well as the other product revenues give you an idea of what's the overall kind of billings of the company.

西德尼，這是一個很好的問題。我要告訴您的是，在我們實施 ASC 606 的過程中，我們一直在與合作夥伴一起建立新合同，以便我們能夠在整個過程中按比例獲取收入合同的。因此，您將看到，隨著其中一些項目的實施，許可帳單和特許權使用費收入之間的差異將逐季度發生變化。正如您所指出的，我們在這一年中確實減少了多份合同，因此部分差異也反映在其中。但我認為，季度與季度之間的真正差異實際上更多地在於不同合約的結構以及它們在一年中如何出現。我們確實注意到並且我之前談到過這一點，僅從季節性角度來看，就我們歷史上如何進行許可和續訂而言，第二季度通常是我們一年中最低的季度。但我不會過度解讀這項變化。我認為將許可帳單和其他產品收入結合起來可以讓您了解公司的整體帳單情況。

Okay. That's helpful. Maybe a follow-up question is -- I think last quarter, you talked about the lack of feasibility in the near term. I think you kind of reiterated that today. Has that improved since the last quarter? Maybe talk about where you see feasibility improving, where feasibility is still lacking. And I understand you also have -- your view on demand in China, I know there's no direct impact but just want to see if there's indirect impact on you guys.

好的。這很有幫助。也許後續問題是——我認為上個季度，您談到了短期內缺乏可行性。我認為你今天重申了這一點。自上個季度以來情況有改善嗎？也許可以談談您認為可行性在哪些方面有所改善，哪些方面仍然缺乏可行性。我知道你們對中國的需求也有看法，我知道這沒有直接影響，但只是想看看是否對你們有間接影響。

Yes, thanks, Sidney. So as you say, we have no direct impact in China, but it has impact on our customers. So the first thing I would say is that China does not impact our licensing billing forecast. It has a potential indirect impact on our buffer chip business. What we see is that some of our customers have to move their supply chain away from China. That delays the demand from some of those customers. But this being said, although we see softness for the first half of the year, we also have better visibility than we had last quarter in the sense that we believe things may pick back up sometime in Q3, Q4. And that's reflected in our discussions with our customers. There's still some softness, a little better visibility and an expectation that things will come back up in Q3, Q4 this year.

是的，謝謝，西德尼。所以正如你所說，我們在中國沒有直接影響，但對我們的客戶有影響。因此，我首先要說的是，中國不會影響我們的許可計費預測。它對我們的緩衝晶片業務有潛在的間接影響。我們看到的是，我們的一些客戶不得不將供應鏈從中國轉移出去。這延遲了其中一些客戶的需求。但話雖這麼說，儘管我們看到上半年的疲軟，但我們的能見度也比上季度更好，因為我們相信情況可能會在第三季、第四季的某個時候回升。這反映在我們與客戶的討論中。仍然存在一些疲軟，可見度有所提高，並且預計今年第三季、第四季情況會有所回升。

Okay. Wonderful. And maybe one last question for me. In terms of the high-speed IP Core business, first, can you remind us how big that business is? And second, you talked about taping out 112 gigabyte SerDes PHY on 7 nanometers. When do you expect that to contribute meaningfully to your revenue? And can you talk about competition there, for instance, to occur in generation of the 56G?

好的。精彩的。也許還有我的最後一個問題。就高速IP Core業務而言，首先您能否介紹一下該業務有多大？其次，您談到了在 7 奈米上流片 112 GB SerDes PHY。您預計什麼時候這會對您的收入產生有意義的貢獻？您能否談談那裡的競爭，例如 56G 世代中發生的競爭？

Yes, sure. As Rahul would say, our licensing billing is approximately $300 million per year. If we don't count the step downs, then that includes our IP Core business. The 112 gig, what you see in our IP Core business is that we have refocused our attention to things that we believe are going to gain traction in the market. So the 112-gig SerDes has been developed with in line of sight the deployment of 400 gig networks that we expect to see starting sometime in 2021. So a lot of SoC companies are actually developing today chips that will use this 112-gig SerDes for these markets. Similarly, we have developed a 32-gig SerDes in 7 nanometer. We are developing a 32-gig SerDes in 7 nanometer to address other the markets that we believe are going to gain traction like 5G infrastructure or PCIe Gen 5. So we're focusing our efforts onto those markets because we believe those markets are going to create demand. The way we play in those markets is we get the revenue from the SoC vendors who bill the SoCs for when the market are going to start in 2021. So we see licensing revenues from these SoCs earlier than 2021. That's why we're doing that. Our competitors -- our main competitor in that market is Broadcom. There are a lot of competitors that are trying to get in that market, but what we're seeing from customers and from the market today is that we are gaining nice traction with our customers and continue to gain share. I'll repeat that. Over the last 4 years, we've grown on an annual compound rate of 50% in the business.

是的，當然。正如 Rahul 所說，我們的授權費用每年約為 3 億美元。如果我們不計算裁員，那麼這包括我們的 IP 核能業務。112 演出，你在我們的 IP 核能業務中看到的是，我們已經將注意力重新集中到我們相信將在市場上獲得吸引力的事情上。因此，112 GB SerDes 的開發符合 400 GB 網路的部署，我們預計將於 2021 年某個時候開始部署。因此，現在許多 SoC 公司實際上正在開發針對這些市場使用 112 GB SerDes 的晶片。同樣，我們開發了 7 奈米 32 Gb SerDes。我們正在開發 7 奈米的 32 G SerDes，以應對我們認為將獲得關注的其他市場，例如 5G 基礎設施或 PCIe Gen 5。因此，我們將重點放在這些市場上，因為我們相信這些市場將創造需求。我們在這些市場中的運作方式是從 SoC 供應商那裡獲得收入，他們在 2021 年市場啟動時向 SoC 收取費用。因此，我們會在 2021 年之前看到這些 SoC 的授權收入。這就是我們這樣做的原因。我們的競爭對手－我們在該市場的主要競爭對手是博通。有很多競爭對手試圖進入這個市場，但我們從客戶和今天的市場上看到的是，我們正在獲得客戶的良好關注並繼續獲得份額。我再說一次。在過去 4 年裡，我們的業務年複合成長率為 50%。

(Operator Instructions) Your next question is from Mark Lipacis with Jefferies.

（操作員說明）您的下一個問題來自 Jefferies 的 Mark Lipacis。

A couple on crypto and one on the memory buffer business. On the crypto side, you mentioned the key design win with the new OEM. Could you share with us where you are in that product or project deployment and how big that could be ideally? And when you talk about building momentum in CryptoManager in the data center, could you provide any more color about what's going on there? What's the application? And then I have a follow-up on the memory buffer.

一對是關於加密貨幣的，一對是關於記憶體緩衝區業務的。在加密方面，您提到了新 OEM 的關鍵設計勝利。您能否與我們分享您在該產品或專案部署中的進度以及理想的規模有多大？當您談到在資料中心的 CryptoManager 中建立動力時，您能否提供更多有關那裡正在發生的事情的資訊？有什麼應用？然後我對記憶體緩衝區進行了跟進。

Yes. Thank you, Mark. So we are currently on a trajectory of about 1 design win with an OEM every quarter as to -- we got a design win for one of our IP cores in crypto last quarter. And unfortunately, we cannot disclose the name, but that's a different OEM than the OEMs we used to have in the past. But that's a good sign that this market is picking up for us. The other thing that happened for us last quarter is that we had expanded some of our provisioning agreements with existing customers, which is a sign that the demand for these products is still good. Now moving forward, what we see is we see traction with a couple of customers in 2 main areas. One is the -- in the automotive, and one is the cloud infrastructure area. I think it's too early at this point in time to give details about that. In general, what we see is a regular pace of new design wins and new design opportunities in new segments that gives us confidence into our growth in that business. This gives me an opportunity to say that in 2019, every one of our products initiatives is going to grow over 2018, which is really good for us.

是的。謝謝你，馬克。因此，我們目前正處於每個季度與 OEM 獲得約 1 項設計勝利的軌道上——上個季度我們在加密領域的一個 IP 核獲得了設計勝利。不幸的是，我們不能透露這個名字，但那是一個與我們過去擁有的 OEM 不同的 OEM。但這對我們來說是一個好兆頭，顯示這個市場正在回升。上季我們發生的另一件事是，我們擴大了與現有客戶的一些供應協議，這表明對這些產品的需求仍然良好。現在，我們看到的是，我們在兩個主要領域看到了一些客戶的吸引力。一是汽車領域，一是雲端基礎設施領域。我認為現在提供相關細節還為時過早。總的來說，我們看到的是新設計的勝利和新細分市場的新設計機會的定期節奏，這讓我們對該業務的成長充滿信心。這讓我有機會說，2019 年，我們的每項產品計劃都將比 2018 年有所成長，這對我們來說非常有利。

Okay. Excellent. And then on the memory buffer business, you mentioned some issues with the supply chain. I just want to make sure -- I think I understand what this is. Is this your customers or your customers -- or your customer customers downstream trying to take the manufacturing out of China and putting it in nontariff locations and then setting up that supply chain and then -- and now you're seeing orders? Is that kind of the idea that maybe some orders pushed out in addition to the inventory issues? Or is this supply chain issue that has to do with resetting up manufacturing outside of China? I just want to make sure if that's the issue.

好的。出色的。然後關於記憶體緩衝區業務，您提到了供應鏈的一些問題。我只是想確定一下——我想我明白這是什麼。這是你的客戶還是你的客戶——或者你的下游客戶客戶試圖將製造業從中國轉移到非關稅地點，然後建立供應鏈——現在你看到了訂單？除了庫存問題之外，是否有一些訂單被推遲的想法？或者這個供應鏈問題與在中國境外重置製造業有關？我只是想確定這是否是問題所在。

Yes, correct. We see a combination of challenges that has hit the market recently. One is the inventory situation across the board. As we said earlier, we believe that should clear up in Q3 or Q4 this year. The other thing is you're absolutely right. Some of our customers had to move their manufacturing locations from China to other countries to deal with the tariff situation. So if you combine these 2 factors, that explains the softness that we've seen in the first half of this year. But as I said earlier, we had a very good trajectory of design wins. We were not immune to that softness, but the impact of that softness on the demand side has been less than expected on our supply.

是，對的。我們看到最近市場面臨一系列挑戰。一是全線庫存狀況。正如我們之前所說，我們認為這種情況應該會在今年第三季或第四季得到緩解。另一件事是你是絕對正確的。我們的一些客戶不得不將製造地點從中國轉移到其他國家以應對關稅情況。因此，如果將這兩個因素結合起來，就可以解釋我們在今年上半年看到的疲軟狀況。但正如我之前所說，我們的設計獲勝軌跡非常好。我們也未能倖免於這種疲軟的影響，但需求上的疲軟對我們供應的影響小於預期。

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 Luc.

目前，沒有其他問題了。問答環節到此結束。我現在想把會議轉回給呂克。

Thank you. As you can see, we continue to navigate with confidence, demonstrating our technology leadership and ability to execute across the company. Thank you for your continued interest and time, and have a good day. Thank you.

謝謝。正如您所看到的，我們繼續充滿信心地前進，展示了我們在整個公司的技術領先地位和執行能力。感謝您持續的關注和時間，祝您有美好的一天。謝謝。

Thank you. This now concludes today's conference.

謝謝。今天的會議到此結束。