Rambus Inc (RMBS) 2019 Q2 法說會逐字稿

Welcome to the Rambus Second 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 第二季和 2019 財政年度收益電話會議。（操作員說明）謹此提醒，本次電話會議正在錄音。我現在想將會議交給財務長拉胡爾·馬圖爾 (Rahul Mathur)。您可以開始您的會議了。

Thank you, Philip, and welcome to the Rambus Second Quarter 2019 Results Conference Call. I am Rahul Mathur, CFO; and on the call with me today is Luc Seraphin, our CEO.

謝謝 Philip，歡迎參加 Rambus 2019 年第二季業績電話會議。我是財務長拉胡爾‧馬圖爾 (Rahul Mathur)；今天與我通話的是我們的執行長 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 3471916 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 3471916 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 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, the expected benefits of our merger, acquisition and divestiture activity, including the expected timing of transaction completions, 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 年第三季及以後）、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服務於我們的合併、收購和剝離活動的預期收益，包括交易完成的預期時間，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 have posted on our website a reconciliation of these non-GAAP financials to the most directly comparable GAAP measures in our press release and our slide presentation. You can see this on our website at rambus.com on the Investor Relations page under Financial Releases.

為了讓我們的財務狀況更加清晰，我們在新聞稿和本次電話會議中同時使用 GAAP 和非 GAAP 財務簡報。我們在我們的網站上發布了這些非公認會計準則財務數據與我們的新聞稿和幻燈片演示中最直接可比較的公認會計準則衡量指標的調節表。您可以在我們的網站 rambus.com 的「投資者關係」頁面上的「財務發布」下看到此資訊。

The order of our call today will be as follows: 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？

Thank you, Rahul, and good afternoon, everyone. At the beginning of this year, we laid out a set of strategic priorities that are critical to our company's success that included refocusing our product portfolio and R&D around our core strength in semiconductor, optimizing the company for operational efficiency, and leveraging our strong cash generation to reinvest for amplified growth. With that, Rambus made great progress towards our strategic priorities and executed well in the second quarter.

謝謝拉胡爾，大家下午好。今年年初，我們制定了一系列對公司成功至關重要的戰略重點，其中包括圍繞我們在半導體領域的核心優勢重新調整我們的產品組合和研發、優化公司運營效率以及利用我們強大的現金生成能力再投資以擴大成長。至此，Rambus 在我們的策略重點方面取得了巨大進展，並在第二季度表現良好。

We delivered total revenue of $58.3 million, in line with guidance, and strengthened our balance sheet, generating $38.7 million in cash from operations. We continue to meet or exceed our commitment to the market as a company, and our product revenue continues to show strong growth.

我們實現了 5,830 萬美元的總收入，符合指導方針，並加強了我們的資產負債表，從營運中產生了 3,870 萬美元的現金。作為一家公司，我們繼續履行或超越我們對市場的承諾，我們的產品收入繼續呈現強勁成長。

The most notable recent events that took place to demonstrate our progress to strategy are last month's announcement of our agreement to sell our Payments and Ticketing business to Visa and today's announcement of our agreement to acquire Northwest Logic to augment our interface IT offerings with best-in-class digital controllers.

最近發生的最引人注目的事件，展示了我們在策略上取得的進展，包括上個月宣布的將支付和票務業務出售給Visa 的協議，以及今天宣布的協議收購Northwest Logic，以通過最佳的技術增強我們的介面IT 產品。一流的數位控制器。

First, the transaction with Visa simplifies our portfolio of offerings to redefine our parameter in the semiconductor market, which is a critical step in moving the company forward. With Visa, we are excited that the Payments and Ticketing group will have an opportunity to develop and deliver rich new solutions to the global market and make an industry leader like Visa even better with our tremendous product and talents.

首先，與 Visa 的交易簡化了我們的產品組合，重新定義了我們在半導體市場的參數，這是推動公司前進的關鍵一步。透過 Visa，我們很高興支付和票務團隊將有機會為全球市場開發和提供豐富的新解決方案，並利用我們豐富的產品和人才使像 Visa 這樣的行業領導者變得更好。

Second, as we complete the necessary steps to simplify, we also continue to seek out opportunities to amplify our market and technology positions with new investments that fit within our areas of focus. In line with that strategy, we have signed an agreement to acquire the digital controller company, Northwest Logic, and we will be integrating their offerings and design team in our IT core business.

其次，在完成必要的簡化步驟的同時，我們也繼續尋找機會，透過適合我們重點領域的新投資來擴大我們的市場和技術地位。根據該策略，我們簽署了收購數位控制器公司 Northwest Logic 的協議，我們將把他們的產品和設計團隊整合到我們的 IT 核心業務中。

As a market leader in memory, PCIe and MIPI digital controllers, Northwest Logic would expand our solutions by creating a complementary product portfolio of PHYs and controllers for data center, AI, communications and automotive. Every SoC design that uses a memory or SerDes PHY also needs to use the necessary controller. The combination of digital and physical IT portfolios from Northwest Logic and Rambus will create a one-stop shop for customers and improve the competitive positioning for the IP Cores team.

作為記憶體、PCIe 和 MIPI 數位控制器的市場領導者，Northwest Logic 將透過為資料中心、人工智慧、通訊和汽車創建 PHY 和控制器的互補產品組合來擴展我們的解決方案。每個使用記憶體或 SerDes PHY 的 SoC 設計也需要使用必要的控制器。Northwest Logic 和 Rambus 的數位和實體 IT 產品組合的結合將為客戶創建一站式服務，並提高 IP 核團隊的競爭地位。

The Northwest Logic acquisition is expected to close in Q3 of this year. Due to the timing of the close, this transaction will not materially impact 2019 results, but we expect it to have an immediate positive impact on the business and to be accretive to revenue and earnings in 2020.

對 Northwest Logic 的收購預計將於今年第三季完成。由於交易完成的時間表，該交易不會對 2019 年業績產生重大影響，但我們預計它將對業務產生立竿見影的正面影響，並增加 2020 年的收入和收益。

In addition to the inorganic changes to drive growth, Rambus business units continue to execute with overall product revenue for Server DIMM chips and silicon IP systematically increasing.

除了推動成長的無機變化之外，Rambus 業務部門繼續執行伺服器 DIMM 晶片和矽 IP 的整體產品收入系統性成長。

Q2 was a record quarter for our Server DIMM Chipset business, with first half revenue up significantly year-over-year and on track for 50% growth on the year as a whole. This growth continues to be driven by increased OEM and data center qualifications, leading to steady gains in our DDR4 buffer chip market share. We believe our growing market position will continue to outweigh any softness in the memory market, and we remain confident in our revenue target for the buffer chip in 2019.

第二季度是我們的伺服器 DIMM 晶片組業務創紀錄的季度，上半年營收年比大幅成長，全年可望實現 50% 的成長。這一成長持續受到 OEM 和資料中心資格提升的推動，從而導致我們的 DDR4 緩衝晶片市場份額穩步增長。我們相信，我們不斷增長的市場地位將繼續超過記憶體市場的任何疲軟，並且我們對 2019 年緩衝晶片的收入目標仍然充滿信心。

We're also well-positioned as the first mover for next-generation DDR5 server DIMM chips, shipping samples at the top-end speeds for both the RCD and DB chips. We are engaged 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.

作為下一代 DDR5 伺服器 DIMM 晶片的先行者，我們也處於有利地位，以最高速度交付 RCD 和 DB 晶片的樣品。我們致力於 DDR5 DIMM 的早期啟動和驗證，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 Cores business also performed extremely well, bringing record revenue for a second consecutive quarter. We announced the addition of our 112 gig SerDes PHY for 400 gig and 800 gig networking, a win for GDDR6 at Achronix, and continued to close new Tier 1 SoC design wins for data center, networking and AI. The team remains on the trajectory of approximately 50% compounded annual growth rate that has been set over the past few years and expects to further accelerate this growth with the addition of the digital IP from Northwest Logic.

我們的高速IP核能業務也表現非常出色，連續第二季創造了創紀錄的收入。我們宣佈為 400 GB 和 800 GB 網路增加 112 GB SerDes PHY，這是 Achronix 的 GDDR6 的勝利，並繼續為資料中心、網路和人工智慧贏得新的第 1 層 SoC 設計勝利。該團隊仍保持過去幾年設定的約 50% 複合年增長率的軌跡，並預計隨著 Northwest Logic 數位 IP 的加入，將進一步加速這一成長。

Over the course of the first half of the year, our Cryptography business has refined its strategy with a simplified go-to-market around secure silicon IP and provisioning. We are focused on creating the most resilient and deployable embedded security on the market. We're building the right portfolio mix to accelerate growth for the business, while managing cost to optimize profitability.

今年上半年，我們的密碼業務透過圍繞安全矽 IP 和配置的簡化上市來完善其策略。我們專注於創建市場上最具彈性和可部署的嵌入式安全性。我們正在建立正確的投資組合以加速業務成長，同時管理成本以優化獲利能力。

The team is delivering on an application-driven product roadmap, incorporating the direct requirements from our focused markets and customers. We expanded our family of CryptoManager Root of Trust cores to include a comprehensive suite of secure processors tailored for AI, data center, automotive and government. This makes the family of cores readily available to the market and easy to integrate for our customers. As a result, we are seeing increased traction in the market, including a security design win at a leading provider of AI accelerators for the large-scale state of the art data center chips.

該團隊正在提供應用程式驅動的產品路線圖，結合我們重點市場和客戶的直接要求。我們擴展了 CryptoManager Root of Trust 核心系列，包括專為人工智慧、資料中心、汽車和政府量身打造的一整套安全處理器。這使得該系列核心很容易上市，並且易於我們的客戶整合。因此，我們看到市場吸引力不斷增強，包括一家領先的人工智慧加速器供應商在大規模最先進資料中心晶片的安全設計方面獲勝。

In closing, Q2 was another solid quarter with continued execution on strategy, delivery on revenue and strong cash generation from operations. Despite a challenging macroeconomic and industry environment, we met our numbers in the first half and maintained our profit expectations for the year through operational execution and gains in market share. We remain focused on our core strength of moving and securing data. We will continue to leverage our technology expertise and strong IP portfolio to deliver first to market, high-quality memory, SerDes and embedded security solutions for our chip and system customers.

最後，第二季度又是穩健的季度，策略持續執行、收入交付以及營運產生的現金強勁。儘管宏觀經濟和行業環境充滿挑戰，但我們在上半年實現了業績目標，並透過營運執行和市場份額的成長維持了今年的利潤預期。我們仍然專注於行動和保護資料的核心優勢。我們將繼續利用我們的技術專長和強大的 IP 產品組合，為我們的晶片和系統客戶提供率先上市的高品質記憶體、SerDes 和嵌入式安全解決方案。

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 second quarter. Let me start with some highlights on Slide 6.

謝謝，盧克。我想先介紹我們第二季的財務表現。讓我從幻燈片 6 的一些亮點開始。

As Luc mentioned, we continue to execute on our product businesses and delivered solid financial results in line with our revenue and our 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 the beginning balance sheet adjustment. Our reported revenue amounts discussed herein are reflected under ASC 606. As a result, any comparison between second quarter 2019 results under ASC 606 and prior results under ASC 605 is not the best way to track our company's progress.

正如盧克所提到的，我們繼續執行我們的產品業務，並根據我們的收入和盈利預期實現了穩健的財務業績。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 年第二季結果與 ASC 605 下的先前結果進行任何比較都不是追蹤我們公司進展的最佳方式。

Now that we're 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一樣呈現結果。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 $58.3 million and licensing billings of $64.9 million, in line with our expectations. We ended the quarter with cash, cash equivalents and marketable securities of $337.7 million, up $31.8 million from the previous quarter due primarily to cash from operations of $38.7 million. We delivered solid financial 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.

我們實現了 5,830 萬美元的收入和 6,490 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 3.377 億美元，比上一季增加 3,180 萬美元，主要是由於營運現金為 3,870 萬美元。我們取得了穩健的財務業績，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性。

Now let me talk you through some revenue details on Slide 7. Revenue for the second quarter was $58.3 million, in line with our expected range of $57 million to $63 million, driven by execution in our product businesses. As we've mentioned previously, ASC 606 has material difference from the timing of revenue recognition for our fixed fee licensing arrangements. Our licensing business continues to perform well. It's the foundation of our success and remains core to our initiatives in both our Memory and Interface 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 上的一些收入詳細資料。第二季的收入為 5,830 萬美元，符合我們 5,700 萬美元至 6,300 萬美元的預期範圍，這得益於我們產品業務的執行。正如我們之前提到的，ASC 606 與我們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。這是我們成功的基礎，仍然是我們記憶體、介面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 second quarter was $27.1 million, while licensing billings was $64.9 million. The difference between licensing billings and royalty revenue primarily relates to timing as we don't always recognize revenue the same quarter we bill our customers. Going into additional detail, our Memory and Interface revenue was $45.5 million and our Security business revenue was $12.8 million.

第二季的版稅收入為 2,710 萬美元，授權費用為 6,490 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。更詳細地說，我們的記憶體和介面收入為 4,550 萬美元，安全業務收入為 1,280 萬美元。

For our Payments and Ticketing business, we expect to close our transaction with Visa in the coming months as we complete regulatory approvals and other customary closing conditions. While this business is currently reflected in our operating results, to help minimize any confusion about the performance of our remaining businesses, we've removed approximately $11 million of revenue from Payments and Ticketing from the quarterly guidance we issued today.

對於我們的支付和票務業務，隨著監管部門的批准和其他慣例成交條件的完成，我們預計將在未來幾個月內完成與 Visa 的交易。雖然該業務目前已反映在我們的經營業績中，但為了最大限度地減少對我們剩餘業務業績的混亂，我們從今天發布的季度指導中刪除了大約 1100 萬美元的支付和票務收入。

For Q2, revenue for Payments and Ticketing was roughly $6 million for the quarter. This was approximately $2 million lower than our initial expectations for the quarter as certain partners paused at the end of the quarter to digest the news that Visa will be acquiring this business. We continue to expect this business to grow to $35 million to $40 million in 2019 and be roughly breakeven.

第二季度，支付和票務收入約為 600 萬美元。這比我們對本季的最初預期低了約 200 萬美元，因為某些合作夥伴在本季結束時暫停了消化 Visa 將收購該業務的消息。我們仍預期該業務將在 2019 年成長至 3,500 萬美元至 4,000 萬美元，並大致實現收支平衡。

Let me walk you through our non-GAAP income statement on Slide 8. Along with our solid revenue performance in Q2, we met our profitability targets on a non-GAAP basis. Cost of revenue plus operating expenses, or what we refer to as total operating expenses, for the quarter came in at $64.1 million, below our expectations due to our cost containment actions and because certain expenses related to the sale of our Payments and Ticketing business will be accounted for as part of the transaction.

讓我向您介紹投影片 8 上的非 GAAP 損益表。除了第二季穩健的收入表現外，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，或我們所謂的總營運費用，為6,410 萬美元，低於我們的預期，這是由於我們的成本控制措施以及與出售我們的支付和票務業務相關的某些費用將作為交易的一部分進行會計處理。

We ended the quarter with a headcount of 772, down slightly from 785 in the previous quarter. We recorded $5.3 million of interest income related to the significant financing component from our fixed fee patent and technology licensing arrangements from which we have not yet received payment but recognize revenue under the new accounting standard.

本季結束時，我們的員工人數為 772 人，略低於上一季的 785 人。我們記錄了 530 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 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 second quarter of $6.1 million. Excluding the interest income related to the significant financing component related to ASC 606, this would have been $0.8 million. Using an assumed flat rate of 24% for non-GAAP pretax income, non-GAAP net income for the quarter was $0.2 million or a diluted net income of $0.00 a share.

我們產生了 60 萬美元與 2017 年第四季發行的可轉換票據相關的利息費用。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，第二季的非 GAAP 利息和其他收入為 610 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 80 萬美元。採用假定非 GAAP 稅前收入 24% 的統一稅率，該季度非 GAAP 淨利潤為 20 萬美元，或稀釋後每股淨利潤為 0.00 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 $337.7 million, up $31.8 million from the previous quarter due primarily to cash from operations of $38.7 million. We expect to maintain our ability to generate substantial cash from operations in 2019 and beyond. This will be an important metric to monitor 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 3.377 億美元，比上一季增加 3,180 萬美元，主要是由於營運現金 3,870 萬美元。我們預計 2019 年及以後將保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。

Given our strong performance in the first half of the year, we expect over $100 million of cash from operations this year, while continuing to invest strategically in our patent portfolio and our growing (inaudible). We also expect to collect roughly $70 million from the sale of our Payments and Ticketing business in the coming months, net of expenses. Our cash balance positions us very nicely to take advantage of the current opportunities in our industry.

鑑於我們上半年的強勁業績，我們預計今年的營運現金將超過 1 億美元，同時繼續對我們的專利組合和成長（聽不清楚）進行策略性投資。我們也預計在未來幾個月內透過出售支付和票務業務收取約 7,000 萬美元（扣除費用）。我們的現金餘額使我們能夠很好地利用行業當前的機會。

Let me spend a few minutes to discuss our capital allocation strategy. As we've discussed previously, our capital allocation priorities are organic growth, inorganic growth and return of capital to shareholders. First, in terms of organic growth, our primary focus is to invest in our patent portfolio and our product programs. Rambus has a long legacy investing in R&D throughout our history, and our patents are foundational to our industry. As part of our strategic planning cycle, we have renewed our focus and investment on patent generation with an emphasis on key technology challenges facing the industry in the years to come. Our patents provide a strong platform for our investment in product development and innovation, and we believe that investing strategically in this area positions us to deliver long-term profitable growth.

讓我花幾分鐘討論一下我們的資本配置策略。正如我們之前討論的，我們的資本配置重點是有機成長、無機成長和股東資本回報。首先，就有機成長而言，我們的主要重點是投資於我們的專利組合和產品計劃。Rambus 在我們的歷史中擁有悠久的研發投資傳統，我們的專利是我們產業的基礎。作為我們策略規劃週期的一部分，我們重新關注並投資於專利生成，重點關注產業在未來幾年面臨的關鍵技術挑戰。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。

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 track record, we remain confident in our ability to continue to renew with our partners at favorable economic terms in the future.

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。

Our organic product programs also continue to grow nicely. Our buffer chip revenue of $16 million was a quarterly record, as was our IP Cores revenue for the quarter. We've been disappointed with the performance of our Security business over the past year, nevertheless, based on our current customer engagements, we continue to believe in the market for embedded silicon and are confident our investments in an area more central to our core strength will pay off in our future.

我們的有機產品計劃也持續良好成長。我們的緩衝晶片收入為 1600 萬美元，創季度記錄，本季 IP 核收入也是如此。我們對過去一年安全業務的表現感到失望，不過，根據我們當前的客戶參與情況，我們仍然相信嵌入式晶片市場，並對我們在更核心的領域進行投資充滿信心將會在我們的未來得到回報。

Second, in terms of inorganic growth, we were pleased to announce the acquisition of Northwest Logic. Our purchase price, including retention agreements, is approximately $30 million. This is highly synergistic and will integrate seamlessly into our existing IP Cores business; though this transaction will not materially impact 2019 results due to the expected timing of close and acquisition accounting, we do expect this acquisition to add roughly $10 million of accretive revenue in 2020. We continue to be very active in evaluating the M&A opportunities in our focus areas of high-speed interface, IP in chips and embedded security solutions. We will target complementary businesses that meet our strategic, financial and operational targets.

其次，就無機成長而言，我們很高興地宣布收購 Northwest Logic。我們的購買價格（包括保留協議）約為 3000 萬美元。這是高度協同的，並將無縫整合到我們現有的 IP 核業務中；儘管由於預期的交割時間和收購會計處理，此次交易不會對 2019 年業績產生重大影響，但我們預計此次收購將在 2020 年增加約 1,000 萬美元的營收成長。我們持續非常積極地評估高速介面、晶片內 IP 和嵌入式安全解決方案等重點領域的併購機會。我們將瞄準滿足我們策略、財務和營運目標的互補業務。

Third, we've been very active in returning capital to our stockholders. Since 2015, we've driven $200 million to our stockholders through accelerated share repurchase programs. While we are currently exploring several exciting M&A opportunities to drive long-term growth, we will continue to consider share repurchase at the appropriate times.

第三，我們一直非常積極地向股東返還資本。自 2015 年以來，我們已透過加速股票回購計畫為股東帶來了 2 億美元的收益。雖然我們目前正在探索幾個令人興奮的併購機會以推動長期成長，但我們將繼續考慮在適當的時候回購股票。

Let me now provide additional details about our balance sheet. At the end of Q2, we had contract assets worth $597.4 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.

現在讓我提供有關我們資產負債表的更多詳細資訊。截至第二季末，我們的合約資產價值 5.974 億美元，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。

It's important to note that this metric doesn't represent the entire value of our existing licensing agreements as several customers have royalty-based agreements that allow us to recognize revenue each quarter under ASC 606. As I mentioned previously, we entered into a share purchase agreement with Visa last month to acquire our Payments and Ticketing business for $75 million in cash. We expect to close in the coming months, pending regulatory approvals and other customary closing conditions.

值得注意的是，該指標並不代表我們現有授權協議的全部價值，因為有些客戶擁有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。正如我之前提到的，我們上個月與 Visa 簽訂了股份購買協議，以 7,500 萬美元現金收購我們的支付和票務業務。我們預計在未來幾個月內完成交易，等待監管部門的批准並滿足其他慣例成交條件。

We classify the assets and liabilities for our Payments and Ticketing business as held for sale until the transaction is completed. The net carrying amount of this business as of the second quarter was $88.5 million, considering assets and liabilities. After considering the $75 million purchase price and approximately $3.5 million in transaction costs, we recorded an impairment charge of $17 million in our GAAP results in Q2. Of course, these numbers are subject to final working capital amounts once the transaction closes.

我們將支付和票務業務的資產和負債分類為持有待售直至交易完成。考慮到資產和負債，截至第二季該業務的帳面淨值為 8,850 萬美元。考慮到 7,500 萬美元的購買價格和約 350 萬美元的交易成本後，我們在第二季的 GAAP 業績中記錄了 1,700 萬美元的減損費用。當然，這些數字取決於交易完成後的最終營運資金金額。

Second quarter CapEx was $3.3 million and depreciation was $3.1 million. Looking forward, I expect roughly $3 million of CapEx for the third quarter and roughly $11 million for the full year of 2019. I also expect depreciation of roughly $3 million for the third 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.

第二季資本支出為 330 萬美元，折舊為 310 萬美元。展望未來，我預計第三季的資本支出約為 300 萬美元，2019 年全年的資本支出約為 1,100 萬美元。我還預計第三季折舊約為 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 third 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.

現在讓我談談幻燈片 10 上的第三季指引。提醒一下，我們的前瞻性指導反映了我們目前的最佳估計，我們的實際結果可能與我即將審查的結果有重大差異。

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 for our business as well as to provide the best economic structure.

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'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. As you see in the supplemental information we provided on Slide 17 of our earnings deck, licensing billings closely correlates with what we've 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，反映了在此期間向我們的許可客戶開出的發票金額，並根據某些差異進行了調整。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。

As I mentioned previously, because we expect to close the sale of our Payments and Ticketing business in the coming months, we've excluded that business in the guidance we have provided today. Similarly, due to purchase accounting and the timing of close, I do not expect Northwest Logic to have a material impact on our guidance for the third quarter. With that said, under ASC 606, we expect revenue in the third quarter between $41 million and $47 million. We expect royalty revenue between $13 million and $19 million. We also expect licensing billings between $58 million and $64 million.

正如我之前提到的，由於我們預計在未來幾個月內完成支付和票務業務的出售，因此我們在今天提供的指導中排除了該業務。同樣，由於採購會計和關閉時間，我預計西北邏輯不會對我們第三季的指導產生重大影響。儘管如此，根據 ASC 606，我們預計第三季的營收將在 4,100 萬美元至 4,700 萬美元之間。我們預計特許權使用費收入將在 1,300 萬美元至 1,900 萬美元之間。我們也預計許可證費用在 5800 萬美元至 6400 萬美元之間。

Excluding the Payments and Ticketing business, we expect Q3 non-GAAP total operating expenses, which includes COGS, to be between $54 million and $58 million. Over the remainder of 2019, we expect to keep operating expenses roughly flat and provide leverage to our financial model.

不包括支付和票務業務，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 5,400 萬美元至 5,800 萬美元之間。在 2019 年剩餘時間內，我們預計營運費用將保持大致持平，並為我們的財務模型提供槓桿作用。

We continue to expect that our buffer chip business will grow nicely in 2019 as we're executing at the run rate required for the $50 million to $70 million range we've discussed previously. 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.

我們繼續預計我們的緩衝晶片業務將在 2019 年實現良好成長，因為我們正在按照我們之前討論過的 5000 萬至 7000 萬美元範圍所需的運行速度執行。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 third quarter is expected to be between a loss of $16 million and $6 million. For non-GAAP interest and other income and expense, 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，第三季非 GAAP 營運業績預計將虧損 1,600 萬美元至 600 萬美元。對於非 GAAP 利息和其他收入和支出（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 the 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 arrangements with our partners in Korea.

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%，這主要是由於我們外國司法管轄區的稅收較高。提醒一下，我們每年繳納大約 2000 萬美元的現金稅，這主要是由我們與韓國合作夥伴的許可安排推動的。

We expect non-GAAP taxes to be between a benefit of $4 million and $1 million in Q3. We expect our Q3 share count to be roughly 113 million basic and diluted shares outstanding. This leads you to between a non-GAAP loss per share of $0.11 and $0.04 for the quarter.

我們預計第三季非 GAAP 稅收收益將在 400 萬美元至 100 萬美元之間。我們預計第三季的流通股基本股和稀釋股約為 1.13 億股。這導致本季非 GAAP 每股虧損為 0.11 美元至 0.04 美元。

While we do not issue annual guidance, as we have discussed previously, this year we have structural stepdowns in several of our long-term licensing agreements that impact our 2019 revenue. In balance, we've executed on growth and our product programs to offset these structural stepdowns. Therefore, we remain comfortable with current consensus analyst expectations on the bottom line for the fourth quarter of 2019. We will provide more detail about our business outlook at our Analyst Day on September 17 at NASDAQ in New York. We hope to see you there.

雖然我們沒有發布年度指引，但正如我們之前討論的那樣，今年我們對幾項長期許可協議進行了結構性削減，這影響了我們 2019 年的收入。總的來說，我們已經執行了成長和產品計劃來抵消這些結構性下降。因此，我們對分析師目前對 2019 年第四季獲利的普遍預期仍然感到滿意。我們將在 9 月 17 日紐約納斯達克的分析師日上提供有關我們業務前景的更多詳細資訊。我們希望看到你在那裡。

Let me finish with a summary on Slide 11. We're proud of the solid performance by our team and the progress we continue to make against our strategic initiatives to drive long-term profitable growth. We're very pleased with the announcement of the sale of our Payments and Ticketing business with Visa and our pending acquisition of Northwest Logic. 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 our demonstrated ability to generate cash.

最後讓我對投影片 11 進行總結。我們為團隊的穩健表現以及我們在推動長期獲利成長的策略性舉措方面不斷取得的進展感到自豪。我們非常高興宣布向 Visa 出售我們的支付和票務業務以及即將收購 Northwest Logic。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，這反映在我們所展示的產生現金的能力上。

In closing, we've refocused our product portfolio around Rambus' core strength in the semiconductor industry, improved our operational efficiency and profitability, generated solid cash from operations and leveraged 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，我們圍繞Rambus 在半導體行業的核心優勢重新調整了我們的產品組合，提高了我們的營運效率和盈利能力，從營運中產生了穩定的現金，並利用我們強大的資產負債表來支持我們的策略舉措。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 Philip to begin Q&A. Could we have our first question?

之後，我會將電話轉回給 Philip 開始問答。我們可以問第一個問題嗎？

(Operator Instructions) Your first question is from the line of Gary Mobley.

（操作員說明）您的第一個問題來自 Gary Mobley。

Bear with me for a minute as I sort of walk through all the different moving pieces, and if you could help me reconcile some of these numbers. So the midpoint of your license billing is $61 million. If I add in the -- what is implied in terms of the product revenue in the contract and other revenue, it gets to the $91 million mark. Is that correct?

請耐心等待我，我將逐步介紹所有不同的移動部分，如果您能幫助我協調其中一些數字。因此，您的許可證費用的中點是 6100 萬美元。如果我加上——合約中的產品收入和其他收入所隱含的內容，則達到 9,100 萬美元。那是對的嗎？

Gary, I'm sorry which quarter are you referring to?

加里，抱歉，您指的是哪個季度？

For your Q3 guide.

為您的第三季指南。

So for Q3, I think what you're referring to is that we gave a guidance on revenue between $41 million and $47 million of revenue. Included in that guidance was royalty revenue of $13 million to $19 million. And what we assumed operationally is we'd have licensing billings of $58 million to $64 million.

因此，對於第三季度，我認為您指的是我們給出的收入指引在 4,100 萬美元至 4,700 萬美元之間。該指引中包括 1,300 萬至 1,900 萬美元的特許權使用費收入。我們假設營運上的許可證費用為 5,800 萬至 6,400 萬美元。

Okay. And so...

好的。所以...

Our licensing billings and royalty revenue is roughly $45 million for Q3.

第三季我們的授權帳單和特許權使用費收入約為 4,500 萬美元。

Okay. And so to get to what was considered at one point a comparable metric to ASC 605 accounting is roughly $91 million, correct?

好的。因此，要達到一度被認為與 ASC 605 會計相當的指標約為 9​​,100 萬美元，對嗎？

I think if you were to take the midpoint of our revenue between $41 million and $47 million, which is about $44 million, and add that delta from the licensing billings, I think you'd have us at something a little closer to about $89 million, if I understand the math that you're trying to do.

我認為，如果您將我們收入的中點計算在 4100 萬美元到 4700 萬美元之間，即大約 4400 萬美元，再加上許可費用的增量，我認為我們的收入會接近 8900 萬美元。 ，如果我理解你想要做的數學。

Okay. And so if it were not for the exclusion of SCS or the revenue generated from the payment business, you'd be closer to $100 million, right?

好的。因此，如果不排除 SCS 或支付業務產生的收入，您的收入將接近 1 億美元，對吧？

Yes. I understand the math that you're doing. As I discussed in our prepared remarks, we took about $11 million of revenue out of our guidance for Q3 related to Payments and Ticketing business.

是的。我明白你正在做的數學。正如我在準備好的發言中所討論的，我們從第三季與支付和票務業務相關的指導中扣除了約 1100 萬美元的收入。

And since that business [is] breakeven, no impact either way on the op margin, correct?

由於該業務是盈虧平衡的，因此對營運利潤率沒有任何影響，對嗎？

Well, there will be an improvement in op margin, but no impact in terms of operating or net profit.

嗯，營運利潤率將會改善，但對營運或淨利潤沒有影響。

Okay. All right. And could you give us a little more detail on sort of the evolution of Northwest Logic? I know the company's been around for, what, 25 years or so. I think it's been part of Altera and Intel. How does this stand today as an independent company? Employee count? And maybe some particular type of customer or ASIC concentration?

好的。好的。您能為我們提供更多關於西北邏輯公司演變的細節嗎？我知道這家公司已經存在了大約 25 年。我認為它是 Altera 和 Intel 的一部分。作為一家獨立公司，如今情況如何？員工人數？也許是某種特定類型的客戶或 ASIC 集中度？

Gary, this is Luc. So you're right, they've been around for some time. They were founded in 1995. At some point in time, they were part of Altera. At that time, they were more of a design house than a company designing IP per se. And after some time when the market was a little soft, Altera spun them off again. And they decided to do development of critical IP for the communication network. And specifically, they have been developing controllers for PCIe, interfaces for high-speed memory interfaces and for MIPI interfaces. And that's how we got to know them.

加里，這是盧克。所以你是對的，他們已經存在了一段時間了。他們成立於 1995 年。在某個時間點，他們是 Altera 的一部分。當時，他們更像是一家設計公司，而不是一家設計 IP 本身的公司。當市場稍顯疲軟一段時間後，Altera 再次將其剝離。他們決定為通訊網路開發關鍵IP。具體來說，他們一直在開發 PCIe 控制器、高速記憶體介面和 MIPI 介面。這就是我們認識他們的方式。

We've actually worked with Northwest Logic for many, many years, because in every SoC design for communication, every time you have a PHY, which we provide, you have to interface that PHY to a controller. So we've known these guys for a long time because with many of our customers, we are designing and supporting the customers together. So they provide PHYs -- sorry, controllers. As I said, the vast majority, memory controllers, about [50%], PCIe controllers and MIPI controllers. That's what they do. So we have a large, common set of customers. But they're also adding customers to our customer set because when you have controllers, you typically have broader channels.

實際上，我們已經與 Northwest Logic 合作了很多很多年，因為在每個用於通訊的 SoC 設計中，每次您擁有我們提供的 PHY 時，您都必須將該 PHY 連接到控制器。所以我們認識這些人很久了，因為我們與許多客戶一起設計和支援客戶。所以他們提供 PHY——抱歉，控制器。正如我所說，絕大多數是記憶體控制器，大約 [50%]、PCIe 控制器和 MIPI 控制器。這就是他們所做的。因此，我們擁有大量共同的客戶。但他們也將客戶加入我們的客戶群中，因為當你擁有控制器時，你通常會有更廣泛的管道。

This is a profitable company. They will add about $10 million of accretive revenue to our business in 2020. The group has been very stable. It's about 30 people. They're based in Hillsboro in Oregon. Same time zone, same type of cultures, so the integration is going to be very easy for us, if I say so. So it's a great acquisition for us. It gives additional potential for our PHYs. It will mean to us faster growth, driven by channel synergies and the rollout of GDDR6, HBM3, and PCIe Gen 5. And it's an accretive revenue for us in 2020. So we're really excited with this acquisition.

這是一家獲利的公司。他們將在 2020 年為我們的業務增加約 1000 萬美元的增量收入。團體一直非常穩定。大約有30人。他們的總部位於俄勒岡州希爾斯伯勒。相同的時區，相同的文化類型，所以如果我這麼說的話，融合對我們來說會很容易。所以這對我們來說是一次偉大的收購。它為我們的 PHY 提供了額外的潛力。在通路協同效應以及 GDDR6、HBM3 和 PCIe Gen 5 推出的推動下，這對我們來說意味著更快的成長。這對我們來說是 2020 年的營收成長。所以我們對這次收購感到非常興奮。

Okay. Last question, I'll hop into queue. I think your message is clear on the buffer chip business of growth mostly via market share gains. But could you give us an update on how you see the inventory situation as it relates to Data Center inventory digestion and sort of the order, linearity order patterns in the buffer chip business?

好的。最後一個問題，我將加入隊列。我認為您關於緩衝晶片業務成長的資訊很明確，主要是透過市場佔有率的成長。但是，您能否向我們介紹一下您如何看待庫存狀況的最新情況，因為它與資料中心庫存消化以及緩衝晶片業務中的訂單排序、線性訂單模式有關？

Yes. We had a record quarter in buffer chips since we began that business. Q2 was really, really good for us. As Rahul said, we are well on our trajectory to grow that business 50% compared to last year, which was also 50% compared to the year before. So we're making steady gains there. The inventory situation that we faced in Q1 in particular and the beginning of Q2, seems to ease up a bit now. We start to see orders coming our way. And as we said earlier, the strength of our design win footprint compensates for any inventory concerns that we had earlier in the year. So are we confident about the rest of the year? We're very confident about the rest of the year for this business. And again, it's based on the strength of our design win footprint.

是的。自從我們開始這項業務以來，我們的緩衝晶片季度創紀錄。第二季對我們來說真的非常好。正如 Rahul 所說，我們的業務預計將比去年增長 50%，與前年相比也增長 50%。所以我們在那裡取得了穩定的進展。我們在第一季尤其是第二季初面臨的庫存狀況現在似乎有所緩解。我們開始看到訂單來了。正如我們之前所說，我們的設計贏得足蹟的實力彌補了我們今年早些時候的任何庫存問題。那麼我們對今年剩下的時間充滿信心嗎？我們對今年剩餘時間的業務非常有信心。再說一遍，它是基於我們設計勝利足跡的力量。

Your next question is from the line of Suji Desilva.

您的下一個問題來自 Suji Desilva。

Congratulations on the transaction. So I was doing the same math Gary was. I just want to make sure I did it right as well. So for Q2, it was ASC 605, Rahul, I got $96 million roughly of revenues and $0.22. Is that roughly where that would have came out in 605? Does that sound ballpark?

祝賀交易成功。所以我也在做和加里一樣的數學計算。我只是想確保我也做對了。因此，對於第二季度，是 ASC 605，Rahul，我大約獲得了 9600 萬美元的收入和 0.22 美元。這大概就是 605 年出現的情況嗎？這聽起來大概嗎？

So Suji, we can't provide 605 numbers. But I think I understand the math you're trying to do. And if I were to do the same math, I think I would've gotten the same result.

Suji，我們無法提供 605 號碼。但我想我理解你想做的數學。如果我做同樣的數學，我想我會得到同樣的結果。

Okay. And I guess just to follow-up on that, with the 3Q guide, I just want to use the same math, obviously, and I got a midpoint of $89 million, $86 million to $92 million, and EPS of $0.23. Does that all sound ballpark as with the same math was used?

好的。我想，為了跟進這個問題，對於 3Q 指南，我顯然只想使用相同的數學，我得到的中點為 8900 萬美元、8600 萬美元至 9200 萬美元，每股收益為 0.23 美元。這聽起來是否與使用相同的數學原理一樣大致？

Yes, again, I mean, that's math we can't do. But if I were to follow your math and how you laid out your model, I'd get the same numbers.

是的，我再說一遍，這是我們做不到的數學。但如果我遵循你的數學和你如何佈置你的模型，我會得到相同的數字。

Excellent. And then also on the memory buffer business, just a question there. With DRAM prices being so volatile, is that impact favorable for you guys? Neutral? Or is it a headwind? Just to understand how the two are interplaying. I know you guys are gaining share more than impacted by the market, but maybe any color there would be helpful.

出色的。然後還有關於記憶體緩衝區業務，這只是一個問題。由於 DRAM 價格如此波動，這種影響對你們有利嗎？中性的？還是逆風？只是為了了解兩者如何相互作用。我知道你們獲得的份額超過了市場的影響，但也許任何顏色都會有幫助。

Yes, there were 2 reasons -- thanks, Suji. There were 2 main reasons for the volatility in the DRAM market. One was volume-based with the inventory buildup at the end of last year and the beginning of this year. And I think that we've gone through the worst part of it now, and people are starting to place orders again. The second factor was there was pressure on DRAM pricing, which does not really affect us at all. We're more dependent on the volume impact than the price impact on what's happening on the DRAM. So we see the current environment as being better than the environment we were facing a quarter ago.

是的，有兩個原因——謝謝，Suji。DRAM市場波動的主要原因有兩個。一種是基於數量的，去年年底和今年年初庫存增加。我認為我們現在已經經歷了最糟糕的部分，人們又開始下訂單了。第二個因素是 DRAM 定價面臨壓力，這對我們來說根本沒有影響。對於 DRAM 上發生的情況，我們更依賴銷售影響，而不是價格影響。因此，我們認為當前的環境比一個季度前面臨的環境要好。

What we also see is the market is transitioning from the Skylake platform to the Cascade Lake processor. And as we go through that transition, because our footprint is twice what it used to be in Skylake, we see a nice flow of orders coming our way, and nice growth for that business.

我們也看到，市場正在從 Skylake 平台過渡到 Cascade Lake 處理器。當我們經歷這一轉變時，由於我們的足跡是 Skylake 的兩倍，我們看到大量訂單湧入，業務也出現了良好的增長。

Okay. Then my last question is on the acquisition of Northwest. I just want to understand if the term digital controller has any implications versus you guys having a good competency in mixed-signal analog, whether that's just semantics. And also what kind of growth rate can we expect for the Northwest business long term?

好的。那麼我的最後一個問題是關於收購西北航空的。我只是想了解數位控制器這個術語與你們在混合訊號模擬方面擁有良好能力的人相比是否有任何影響，無論這是否只是語義。西北業務的長期成長速度是怎樣的？

So the growth rate is, typically, we expect to be double-digit growth, and that's what we've done historically. And it's a profitable business; it's a nice piece of business. In terms of the role of the controller, every time a processor has to transfer data over a memory bus or a PCIe interface, it needs a controller. And that controller actually sends the data to the PHY. So we do the PHY, which is analog technology. We didn't have the controller. But every interface, whether it's a memory interface or a serial interface, is both a PHY and a controller, and that's why it makes so much sense for us.

因此，我們通常預期成長率將達到兩位數，而這正是我們歷史上所做的。這是一門有利可圖的生意；這是一筆不錯的生意。就控制器的作用而言，每當處理器需要透過記憶體匯流排或PCIe介面傳輸資料時，它就需要一個控制器。該控制器實際上將數據發送到 PHY。所以我們做 PHY，這是模擬技術。我們沒有控制器。但每個接口，無論是記憶體接口還是串行接口，都是 PHY 和控制器，這就是為什麼它對我們如此有意義。

Your next question is from the line of Sidney Ho.

您的下一個問題來自 Sidney Ho。

I'll add my congrats to the 2 transactions. My first question is, I think the last quarter, you talked about in the near term, things are a little challenging, visibility is low, inventory is a little high. I think you kind of reiterated that, the challenging part. And the answers to your previous 2 questions mostly relate to buffer chipsets. Can you talk about maybe outside of buffer chipsets, any update on visibility? Is it getting better or getting worse? Any color on specific end market may be helpful.

我將對這兩筆交易表示祝賀。我的第一個問題是，我認為上個季度，你談到的短期內，事情有點具有挑戰性，能見度低，庫存有點高。我認為你重申了這一點，即具有挑戰性的部分。前兩個問題的答案主要與緩衝區晶片組有關。您能否談談緩衝區晶片組之外的可見性方面的任何更新？是好轉還是惡化？特定終端市場上的任何顏色都可能有幫助。

Right. So Sidney, if I understand, you're asking about the other business than buffer chip, right? So on the IP Cores business, we continue to have very good traction. That business has grown over the last 4 years at a CAGR of 50% per year. That was based on the strength of the technology and the design wins. And we had very good traction this quarter again. I think as I said earlier in my notes, this is the second-largest -- this the second time we have the largest revenue from that business in IP Cores. And the fact that we are acquiring Northwest Logic will accelerate that growth. And will also give us access to more customers, #1. And #2, it will accelerate our design. Because the PHY has to be designed in the SoC with the controller. If you don't own the controller, you have to have a 3-way relationship between your partner, your customer and yourself. So this whole process is going to accelerate as we do that.

正確的。所以西德尼，如果我理解的話，你問的是緩衝晶片以外的其他業務，對吧？因此，在 IP 核能業務上，我們繼續擁有非常好的吸引力。該業務在過去 4 年中以每年 50% 的複合年增長率成長。這是基於技術的實力和設計的勝利。本季我們再次獲得了很好的牽引力。我認為正如我之前在筆記中所說，這是第二大收入——這是我們第二次從 IP 核業務中獲得最大收入。我們收購 Northwest Logic 將加速這一成長。並且也將使我們能夠接觸到更多客戶，#1。第二，它將加速我們的設計。因為PHY必須與控制器一起設計在SoC中。如果您沒有控制器，則您的合作夥伴、客戶和您自己之間必須建立三向關係。因此，當我們這樣做時，整個過程將會加速。

So IP Cores, very good results. I would say more on the strategic side than IP Cores. One of the reasons we see that growth is that over the past few years, we have invested in all the foundries, in particular in TSMC, who has the largest market share. Historically, we were with the other 2 foundries, which we continue to be. But by investing in TSMC, we have a larger customer pool to go after. And we're also focusing our development to markets that matter. In the past, we used to do all sorts of interface developments for all sorts of customers. Bespoke developments, I would say.

所以IP核，效果非常好。我想說的更多是戰略方面而不是 IP 核。我們看到成長的原因之一是，在過去的幾年裡，我們投資了所有的代工廠，特別是市佔率最大的台積電。從歷史上看，我們曾與另外兩家鑄造廠合作過，現在仍然如此。但透過投資台積電，我們可以爭取更大的客戶群。我們還將開發重點放在重要的市場上。過去，我們為各種客戶進行各種介面開發。我想說的是客製化開發。

Now our developments are really focused on applications that we think are going to generate demand. For example, PCIe Gen 4 and Gen 5 are going to be a large -- going to create large demand, in particular in 5G or in network. We are developing 112 gig PHYs in TSMC 7-nanometer that will be critical to 400-gig networks and 800-gig networks. And for the high-speed memory side, we are betting on our ability to develop high-speed, high-bandwidth memory, not only for the graphics space, but also for spaces that need this high bandwidth and high speed, but specifically AI and automotive. So we refocused our product portfolio. We expanded into TSMC. We're targeting markets that are going to create demand. We're adding content with the digital controller. We're expanding our segments because digital controllers address more segments. So with all of that, we expect to continue to see growth with the IP business.

現在我們的開發真正集中在我們認為會產生需求的應用程式上。例如，PCIe Gen 4 和 Gen 5 將產生巨大的需求，特別是在 5G 或網路領域。我們正在台積電 7 奈米開發 112 gig PHY，這對於 400 gig 網路和 800 gig 網路至關重要。對於高速記憶體方面，我們押注於我們開發高速、高頻寬記憶體的能力，不僅適用於圖形空間，也適用於需要這種高頻寬和高速的空間，特別是人工智慧和汽車。因此，我們重新調整了產品組合的重點。我們擴展到台積電。我們的目標市場是能夠創造需求的市場。我們正在使用數位控制器添加內容。我們正在擴大我們的細分市場，因為數位控制器可以滿足更多細分市場的需求。因此，我們預計 IP 業務將持續成長。

On the Cryptography business, we've done a lot in terms of simplifying that business and creating growth. We started a bit later than the other 2 businesses, but we see very good traction. Remember that the 2 things we did is we refocused on embedded security for the semiconductor ecosystem. So we developed secure silicon IP for AI, data center, defense, IoT and automotive segments. They're based on programmable processors. So we have an approach, again, which is not an approach of creating bespoke solutions for customers, but we are creating programmable solutions based on the platform and the royalties for different markets.

在密碼學業務方面，我們在簡化業務和創造成長方面做了很多工作。我們的起步比其他兩家企業晚一些，但我們看到了非常好的吸引力。請記住，我們所做的兩件事是我們重新關注半導體生態系統的嵌入式安全性。因此，我們為人工智慧、資料中心、國防、物聯網和汽車領域開發了安全的矽 IP。它們基於可編程處理器。因此，我們再次有一種方法，這不是為客戶創建客製化解決方案的方法，而是我們正在基於平台和不同市場的版稅創建可程式解決方案。

And the second part of our offering is the secure provisioning for the general semiconductor market. So we've simplified our offering. We've refocused on semiconductors. And we're starting to see traction. If you remember, our first customer was Qualcomm in the mobile space. In Q4 of last year, we announced a win an IoT with Micron. In this quarter, we got a major design win with an AI acceleration chip for a major data center provider. So in terms of design win, we see that traction. We see the attractiveness of the product portfolio. And we're starting to see growth in the business as well. That summarizes what we do outside of buffer chip.

我們產品的第二部分是針對一般半導體市場的安全配置。因此，我們簡化了我們的產品。我們重新關注半導體。我們開始看到吸引力。如果您還記得的話，我們的第一個客戶是行動領域的高通公司。去年第四季度，我們宣布與美光贏得物聯網。在本季度，我們為一家主要資料中心供應商贏得了人工智慧加速晶片的重大設計勝利。因此，就設計獲勝而言，我們看到了這種吸引力。我們看到了產品組合的吸引力。我們也開始看到業務的成長。這總結了我們在緩衝晶片之外所做的事情。

Sounds great. Wonderful. That's a good segue for my next question. Now that you have sold your software [to an organization] ticketing business, which obviously, have pretty good growth rate in the last year as well, how do you think about the overall growth trajectory for the remaining of the business on an organic basis? And specifically, if you back out the memory or related revenues whether it's licensing or chipset revenues, I want to see how we should think about the remaining of that business going forward.

聽起來很棒。精彩的。這是我下一個問題的一個很好的延續。既然您已經將軟體出售給了票務業務（顯然，該業務在去年也有相當不錯的成長率），那麼您如何看待剩餘業務的自然成長軌跡？具體來說，如果你取消記憶體或相關收入，無論是授權還是晶片組收入，我想看看我們應該如何考慮該業務的剩餘部分。

Sidney, it's Rahul. So I'm having a little difficulty following your question just in terms of overall growth rate. We continue to target growing faster than our overall industry. As we've talked about, we have several patent license agreements, which have structural stepdown shift in the way that our partners schedule their payments, and we've been able to offset that through very attractive growth rates in our product programs as Luc has laid out. I think what I would suggest is give us an opportunity to talk to you more holistically about our overall growth rate when we have our Analyst Day coming up in September.

西德尼，我是拉胡爾。因此，就整體成長率而言，我在回答你的問題時遇到了一些困難。我們繼續以比整個行業更快的速度成長為目標。正如我們所討論的，我們有幾項專利許可協議，這些協議對我們的合作夥伴安排付款的方式進行了結構性逐步轉變，我們已經能夠通過我們產品計劃中非常有吸引力的增長率來抵消這一點，正如Luc 所言佈置。我認為我的建議是，當我們九月的分析師日到來時，給我們一個機會更全面地與您討論我們的整體成長率。

Okay. That's fair. Maybe last question, if I could squeeze one in. Related to Northwest Logic, can you help us understand what kind of expenses are needed to support that business? And is that pretty much a 100% licensing model with a 100% fall-through?

好的。這還算公平。也許是最後一個問題，我是否可以擠進去。與 Northwest Logic 相關，您能否幫助我們了解支援該業務需要哪些費用？這是否是 100% 的授權模式，卻有 100% 失敗的可能性？

So that's a great question. No, that business doesn't require a bunch of additional overhead beyond what it already has. It will assimilate fairly clean into our existing business. It's an accretive transaction for us. So there is a strong engineering team that we are delighted to welcome into Rambus. One of the many things that we like about this business is that I thought we did a very nice job of integrating our team from Snowbush several years ago. And it's going into that same organization under the same general manager. So our confidence that we'll continue to be able to execute on double-digit or higher growth is very high.

這是一個很好的問題。不，除了現有的業務之外，該業務不需要大量額外的管理費用。它將相當乾淨地融入我們現有的業務。這對我們來說是一項增值交易。因此，我們很高興歡迎 Rambus 擁有一支強大的工程團隊。我們喜歡這個業務的眾多原因之一是，我認為幾年前我們在整合 Snowbush 的團隊方面做得非常好。而且它會進入同一個組織，由同一個總經理領導。因此，我們對繼續實現兩位數或更高成長的信心非常高。

In terms of expenses, there's expenses associated with the folks there. The model there is similar to our existing IP Cores revenue model. So the margins are the same. So there is a combination of both licensing as well as work that we would put into kind of the contract and other from a deal structure perspective. But I think that margin profile is very similar to our existing IP Cores business. And we expect it to be again about $10 million of revenue for us next year and be accretive.

就費用而言，有與那裡的人們相關的費用。該模型與我們現有的 IP 核收入模型類似。所以邊距是相同的。因此，從交易結構的角度來看，我們將把許可和工作結合到合約和其他方面。但我認為利潤狀況與我們現有的 IP 核能業務非常相似。我們預計明年我們的收入將再次達到 1000 萬美元左右，並且會不斷增加。

(Operator Instructions) Your next question is from the line of John Pitzer.

（操作員說明）您的下一個問題來自 John Pitzer。

Rahul, just going back to the settlement -- the sale of Payments and Ticketing to Visa. I think you said it would have been $11 million in the September quarter guide. I thought you said $6 million in the June. I'm just kind of curious, how do we think about kind of a full year revenue for that business as we think about truing up our 2020 estimates?

Rahul，我們回到解決方案—將支付和票務業務出售給 Visa。我想您說過 9 月份季度指南中的金額為 1100 萬美元。我以為你說的是 6 月 600 萬美元。我只是有點好奇，當我們考慮調整 2020 年的預測時，我們如何看待該業務的全年收入？

Yes. Absolutely. That's a great question, John. And you got it exactly right. So that business did about $7 million for us in Q1. It ended up doing about $6 million for us in Q2. That $6 million was about $2 million less than we anticipated, because as I mentioned, we had several partners who just took a little pause once we announced that we had a transaction just as they were evaluating that for their business. So that shifted about $2 million of revenue we would have expected in Q2 most likely into Q3.

是的。絕對地。這是一個很好的問題，約翰。你說得完全正確。因此，該業務在第一季為我們帶來了約 700 萬美元的收入。它最終在第二季為我們帶來了約 600 萬美元的收入。這600 萬美元比我們的預期少了約200 萬美元，因為正如我所提到的，我們的幾個合作夥伴在我們宣布我們進行了一項交易後暫停了一會兒，當時他們正在評估他們的業務。因此，我們預計第二季約 200 萬美元的收入很可能轉移到了第三季。

So what we had targeted for that business in 2019 is to do between $35 million to $40 million. So that ramp could easily have been something like a $7 million, $8 million, $9 million, $11 million, and you have about $2 million shift from Q2 to Q3. So then you can look at a portfolio that would be closer to kind of a $7 million, $6 million, $11 million and $11 million, and still be in that $35 million to $40 million range.

因此，我們 2019 年該業務的目標是實現 3,500 萬至 4,000 萬美元的收入。因此，這個成長很可能是 700 萬美元、800 萬美元、900 萬美元、1100 萬美元，從第二季到第三季大約有 200 萬美元的轉移。那你可以看看一個接近 700 萬美元、600 萬美元、1100 萬美元和 1100 萬美元的投資組合，但仍然在 3500 萬美元到 4000 萬美元的範圍內。

That business, I think, still has an opportunity to grow very nicely in terms of 2020. So we had talked about $35 million to $40 million for us in 2019. Could it be in the $45 million to $50 million range in 2020? I think it certainly could have been. But as I mentioned earlier, there's several changes that we're going to have to remodel. We're just simply going to look differently with no longer having Payments and Ticketing but having Northwest Logic. And so we'll provide more data about how we'll look and what it will look like in 2020 at our Analyst Day in September.

我認為，到 2020 年，該業務仍有機會實現良好成長。因此，我們討論了 2019 年的 3,500 萬至 4,000 萬美元。2020 年可能會在 4500 萬美元到 5000 萬美元之間嗎？我想這當然是可能的。但正如我之前提到的，我們將不得不進行一些更改。我們只是用不同的方式看待，不再有支付和票務，而是有西北邏輯。因此，我們將在 9 月的分析師日上提供更多有關 2020 年我們的情況和情況的數據。

That's a good segue to my second question just on the Northwest Logic. You said $10 million of revenue for next year. I'm kind of curious as to how we think about the 2019 sort of revenue run rate for that business. And just given the big discrepancy in your organic business between 605 and 606, is there a similar discrepancy you can talk about with Northwest Logic or not?

這是我關於西北邏輯的第二個問題的一個很好的延續。你說明年的收入是 1000 萬美元。我有點好奇我們如何看待該業務 2019 年的營收運作率。鑑於 605 和 606 之間的有機業務存在巨大差異，您是否可以與 Northwest Logic 討論類似的差異？

Yes. I don't expect that same discrepancy at Northwest Logic because those are more specifically related to the agreements that we have with customers. So we don't see that same level of discrepancy, for example, in our IP Cores business as we do in our patent and licensing business, so I wouldn't expect that much of a change. So if it was $10 million of revenue under -- when I say $10 million of revenue, I think it's going to be about $10 million of revenue under ASC 606, right, for us in 2020. Does that help answer your question?

是的。我預計 Northwest Logic 不會有同樣的差異，因為這些差異與我們與客戶簽訂的協議更具體相關。因此，我們在 IP 核能業務中沒有看到與專利和授權業務中相同程度的差異，因此我預計不會出現太大的變化。因此，如果在 ASC 606 下的收入為 1000 萬美元，當我說 1000 萬美元的收入時，我認為到 2020 年，我們在 ASC 606 下的收入將約為 1000 萬美元。這有助於回答您的問題嗎？

It does, but what sort of base should we think of for 2019 for Northwest Logic?

確實如此，但我們應該為 Northwest Logic 的 2019 年打下什麼樣的基礎呢？

Sure. So for 2019, for Q3, I don't expect it to have a material impact to our Q3 results. The reason is that it will still take a little time for that to close and so we're already about a month into the quarter. In terms of Q4, I remind you that a little bit of revenue that we get in Q4, as John, you're well aware, because of purchase accountings, we don't get to count anything that comes over as an assumed contract as revenue. But I would expect that we would still get to recognize some of the expense that comes over in Q4. So I think it's going to have a relatively neutral impact to our earnings in Q4. And as I mentioned in prepared remarks, we were comfortable with the consensus earnings estimates that the folks had for Q4. Obviously, revenue would probably come down by, say, that $11 million, $12 million associated with the Payments and Ticketing business, which we wouldn't expect to be with us longer.

當然。因此，對於 2019 年第三季度，我預計它不會對我們第三季的業績產生重大影響。原因是，關閉還需要一點時間，所以我們已經進入本季大約一個月了。就第四季度而言，我提醒您，我們在第四季度獲得的一點收入，約翰，您很清楚，由於採購會計，我們無法將任何作為假設合約而來的收入計算在內收入。但我預計我們仍然會認識到第四季度出現的一些費用。因此，我認為這將對我們第四季的收益產生相對中性的影響。正如我在準備好的發言中提到的，我們對人們對第四季度的一致盈利預期感到滿意。顯然，與支付和票務業務相關的收入可能會下降 1,100 萬美元、1,200 萬美元，而我們預計該業務不會持續太久。

That's helpful. Then my last question for Luc. Luc, you talked about the revenue synergy between the core business and Northwest Logic, and it makes a lot of sense, PHY versus controller. I'm kind of curious as to whether or not you can help us to quantify, if everywhere you had a PHY today, you could get a controller with Northwest Logic, what's the revenue opportunity? And vice versa, everywhere they have their controller, if you could bring a PHY into that, what's the revenue opportunity? How do I think about the revenue synergies here?

這很有幫助。然後是我要問呂克的最後一個問題。Luc，您談到了核心業務和 Northwest Logic 之間的收入協同效應，PHY 與控制器之間的關係很有意義。我很好奇你是否可以幫助我們量化，如果今天在任何地方都有 PHY，你都可以使用 Northwest Logic 獲得控制器，收入機會是什麼？反之亦然，無論他們在哪裡都有控制器，如果你可以將 PHY 引入其中，收入機會是什麼？我如何看待這裡的收入綜效？

Yes. That's a good question. That's also a difficult question to answer. We have different sets of customers. So we do have customers where they use today both our PHY and Northwest Logic revenue. So that revenue is going to come to us naturally. There are customers where Northwest Logic is selling the controller, but the customer is using a different PHY. And our strategy will be to continue to support those customers, so we will continue to benefit from that revenue where customers are using the controller, but not using our PHY, using a competitor's PHY. So that's a revenue that we'll take on board as well. And then all of these customers that are using our PHY but are using a different controller, in which case, we're going to try to win those customers.

是的。這是個好問題。這也是一個很難回答的問題。我們有不同的客戶群。因此，我們確實有客戶使用我們的 PHY 和 Northwest Logic 收入。這樣收入就會自然而然地來到我們這裡。Northwest Logic 向某些客戶銷售控制器，但該客戶使用的是不同的 PHY。我們的策略是繼續支持這些客戶，因此我們將繼續從客戶使用控制器但不使用我們的 PHY、使用競爭對手的 PHY 的收入中受益。所以這也是我們也會考慮的收入。然後所有這些使用我們的 PHY 但使用不同控制器的客戶，在這種情況下，我們將嘗試贏得這些客戶。

So overall, the fact that we have the 2 solutions and the fact that we are flexible with our customers in terms of what positive solutions they're going to use, will create higher demand for the combined. The other thing that we should not underestimate is designing a PHY that interface with the controller takes time. When you have both in-house, that time is being reduced, so time to revenue is being reduced as well. So whatever the TAM is, our speed of access to that TAM is overall going to increase because we're going to have 2 solutions in-house.

總的來說，我們擁有這兩種解決方案，我們對客戶將使用哪些積極的解決方案保持靈活，這將為組合帶來更高的需求。我們不應該低估的另一件事是設計與控制器介接的 PHY 需要時間。當您內部擁有這兩種產品時，時間就會減少，因此實現收入的時間也會減少。因此，無論 TAM 是什麼，我們存取該 TAM 的速度總體上都會提高，因為我們將擁有 2 個內部解決方案。

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

目前，沒有其他問題了。問答環節到此結束。現在我想將會議交給執行長 Luc Seraphin 先生。

As you can see, we remain confident in our strategy and ability to execute with demonstrations of success across the company. We thank you for your continued interest and time, and have a good day. Thank you.

正如您所看到的，我們對我們的策略和執行能力充滿信心，並在整個公司中取得了成功。我們感謝您持續的關注和時間，並祝您有美好的一天。謝謝。

Thank you. This now concludes today's conference. Thank you for participating. You may now disconnect.

謝謝。今天的會議到此結束。感謝您的參與。您現在可以斷開連線。