Rambus Inc (RMBS) 2019 Q3 法說會逐字稿

Welcome to the Rambus Third Quarter and FY '19 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.

歡迎參加 Rambus 第三季和 19 財年財報電話會議。（操作員說明）謹此提醒，本次電話會議正在錄音。

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

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

Thank you, Bonita, and welcome to the Rambus Third Quarter 2019 Results Conference Call. I'm Rahul Mathur, CFO; and on the call with me today is Luc Seraphin, our CEO. 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 7170477 when you hear the prompt.

謝謝 Bonita，歡迎參加 Rambus 2019 年第三季業績電話會議。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。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 7170477 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, including our financial guidance for future periods, product 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 success of our integration efforts; and the effects of ASC 606 on reported revenue, amongst other things.

我們今天的討論將包含前瞻性陳述，包括我們對未來時期的財務指導、產品和投資策略；預期產品發布的時間；對現有技術和新取得技術的需求；我們所服務的各個市場的成長機會；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和我們整合工作的成功；以及 ASC 606 對報告收入的影響等。

These statements are subject to risks and uncertainties that are discussed during this call and may be more fully described in the documents we filed with the SEC, including our 8-Ks, 10-Qs and 10-Ks. These forward-looking statements may differ materially from our actual results, and we're under no obligation to update these statements.

這些聲明受到本次電話會議期間討論的風險和不確定性的影響，並且可能在我們向 SEC 提交的文件中進行更全面的描述，包括我們的 8-K、10-Q 和 10-K。這些前瞻性陳述可能與我們的實際結果有重大差異，我們沒有義務更新這些陳述。

In an effort to provide greater clarity in our financials, we're using both GAAP and non-GAAP financial presentations in both our press release and also on this call. A reconciliation of these non-GAAP financials to the most directly comparable GAAP measures has been included in our press release, in our slide presentation and 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。這些非 GAAP 財務數據與最直接可比較的 GAAP 指標的對帳已包含在我們的新聞稿、幻燈片演示以及我們網站 rambus.com 投資者關係頁面的財務發布下。

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 will end with Q&A.

我們今天的電話會議順序如下：Luc 首先概述業務。我將討論我們的財務業績，包括我們對未來時期的指導。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. Over the past year, we have consistently demonstrated strong execution and product revenue growth while meeting or exceeding the expectations in the market. This quarter was no exception with revenue above the high end of guidance at $57.4 million. We strengthened our balance sheet by generating $25.6 million in cash from operations, taking the year-to-date total to $93.1 million, which already exceeds the cash generated for all of 2018.

謝謝拉胡爾，大家下午好。在過去的一年裡，我們始終表現出強勁的執行力和產品收入成長，同時滿足或超越了市場的預期。本季也不例外，營收達 5,740 萬美元，高於指導上限。我們透過營運產生了 2,560 萬美元的現金，從而強化了我們的資產負債表，使年初至今的現金總額達到 9,310 萬美元，這已經超過了 2018 年全年產生的現金。

The company has made tremendous progress towards the strategic objectives set out at the beginning of the year that are critical to our company's success. Our efforts continue to be driven by refocusing our product portfolio and research around our core strength in semiconductor, optimizing the company for operational efficiency and leveraging our strong cash generation to reinvest for growth.

公司在實現年初制定的策略目標方面取得了巨大進展，這對我們公司的成功至關重要。我們繼續努力，圍繞我們在半導體的核心優勢重新調整我們的產品組合和研究，優化公司的營運效率，並利用我們強大的現金產生能力進行再投資以實現成長。

In Q3, we had significant M&A activity, in line with our areas of focus and mission to deliver data faster and safer. We announced 2 exciting silicon IP acquisitions that will enhance our offerings and expand our market position in interface and security. We began with the acquisition of digital controller company, Northwest Logic. As a market leader in memory, PCIe and MIPI digital controllers, Northwest Logic expands our interface solutions for data center, AI, communications and automotive. Every SoC design that uses a PHY also needs an associated controller. With the combination of complementary digital and physical IP portfolios from Northwest Logic and Rambus, we can offer a fully integrated PCIe and memory interface subsystem for our customers.

第三季度，我們進行了大量的併購活動，這符合我們的重點領域和使命，即更快、更安全地提供資料。我們宣布了兩項令人興奮的矽 IP 收購，這將增強我們的產品並擴大我們在介面和安全方面的市場地位。我們首先收購了數位控制器公司 Northwest Logic。作為記憶體、PCIe 和 MIPI 數位控制器的市場領導者，Northwest Logic 擴展了我們針對資料中心、人工智慧、通訊和汽車的介面解決方案。每個使用 PHY 的 SoC 設計也需要一個關聯的控制器。透過結合 Northwest Logic 和 Rambus 的互補數位和實體 IP 產品組合，我們可以為客戶提供完全整合的 PCIe 和記憶體介面子系統。

As we mentioned in last quarter's call, this transaction will not materially impact 2019 results, having just closed in August, but we expect it to have an immediate positive impact on the business and be accretive to revenue and earnings in 2020.

正如我們在上季度的電話會議中提到的，這項交易剛剛在8 月完成，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積極影響，並增加2020 年的收入和收益。

We also announced an agreement to acquire the secure silicon IP and protocols businesses of Verimatrix, formerly Inside Secure. Much like the purchase of Northwest Logic, this anticipated acquisition of the Inside Secure teams and offerings will augment our portfolio of offerings for data center, AI, networking and automotive. This will bring more mission-critical embedded security products, expanding our global reach and creating the industry's most comprehensive portfolio of silicon-proven security IP and chip provisioning solutions. We expect the acquisition to close before the end of the year, subject to customary regulatory approvals.

我們也宣布達成協議，收購 Verimatrix（前身為 Inside Secure）的安全晶片 IP 和協議業務。就像收購 Northwest Logic 一樣，此次對 Inside Secure 團隊和產品的預期收購將擴大我們在資料中心、人工智慧、網路和汽車領域的產品組合。這將帶來更多關鍵任務嵌入式安全產品，擴大我們的全球影響力，並創造業界最全面的經過矽驗證的安全 IP 和晶片配置解決方案組合。我們預計此次收購將在今年年底前完成，但須獲得常規監管部門的批准。

Finally, 2 weeks ago, we closed the sale of our Payments and Ticketing business to Visa, marking a very important milestone for the company. This deal was a critical step for Rambus and redefined our perimeter in the semiconductor market.

最後，兩週前，我們完成了將支付和票務業務出售給 Visa 的交易，這對公司來說是一個非常重要的里程碑。這筆交易對 Rambus 來說是關鍵的一步，並重新定義了我們在半導體市場的邊界。

While the Rambus team has worked very hard on successfully closing and integrating our acquisitions, our business units continue to execute on existing programs.

雖然 Rambus 團隊非常努力地成功完成和整合我們的收購，但我們的業務部門仍在繼續執行現有計劃。

We continue to drive sustained revenue growth in silicon IP, with key design wins for both our interface and security IP solutions. We closed 4 Tier 1 SoC design wins across the portfolio for data center, EDGE, IoT and government. We also announced a combined interface and security IP win at SEAKR for aerospace and satellite communications. The team expanded our portfolio with leading-edge interface solutions for GDDR6, HBM2 and 112 gig on TSMC's leading-edge 7-nanometer process. These are critical building blocks for AI, data center, 5G and automotive.

我們持續推動矽 IP 收入的持續成長，我們的介面和安全 IP 解決方案均取得了關鍵設計成果。我們在資料中心、EDGE、物聯網和政府的產品組合中贏得了 4 項一級 SoC 設計。我們也宣佈在 SEAKR 上贏得航空航太和衛星通訊領域的組合介面和安全 IP。該團隊透過台積電領先的 7 奈米製程上的 GDDR6、HBM2 和 112 gig 領先介面解決方案擴展了我們的產品組合。這些是人工智慧、資料中心、5G 和汽車的關鍵建構模組。

And finally, we announced the industry's fastest complete memory subsystem solution for GDDR6, including the PHY end controller, capable of running at 18 gigabit per second.

最後，我們宣布推出業界最快的 GDDR6 完整記憶體子系統解決方案，包括 PHY 終端控制器，能夠以每秒 18 GB 的速度運作。

Turning now to chips. Q3 was the second consecutive quarter of record revenue for our memory interface chip business, which we now expect to almost double year-over-year. This is driven by increased OEM and data center qualifications, leading to steady gains in our DDR4 memory interface chip market share. The industry is also starting to recover from the softness early this year in the memory market.

現在轉向晶片。第三季是我們的記憶體介面晶片業務收入連續第二季創紀錄，我們現在預計該業務將年增近一倍。這是由 OEM 和資料中心資格的提高所推動的，導致我們的 DDR4 記憶體介面晶片市場份額穩步增長。該行業也開始從今年年初內存市場的疲軟中恢復過來。

In closing, Rambus has made tremendous progress towards the strategic objectives critical to our future and have successfully realigned the company around our core strength in semiconductors. With record revenue from our chip business and continued silicon IP design wins at Tier 1 SoC customers, we exceeded our commitments to the market and delivered a great third quarter.

最後，Rambus 在實現對我們未來至關重要的策略目標方面取得了巨大進展，並成功圍繞我們在半導體領域的核心優勢對公司進行了重組。憑藉我們晶片業務創紀錄的收入以及持續贏得一級 SoC 客戶的矽 IP 設計，我們超越了對市場的承諾，並交付了出色的第三季業績。

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

接下來，我將打電話給拉胡爾，討論季度財務表現。拉胡爾？

Thanks, Luc. I'd like to begin with our financial results for the third quarter. Let me start with some highlights on Slide 6.

謝謝，盧克。我想先介紹我們第三季的財務業績。讓我從幻燈片 6 的一些亮點開始。

As Luc mentioned, we continue to execute in our product businesses and delivered solid financial results above our revenue and earnings expectations. We've adopted 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. Any comparison between our results under ASC 606 and prior results under ASC 605 is not an accurate way to track our company's progress. We'll continue to provide operational metrics such as licensing billings to give our investors better insight into our operational performance.

正如盧克所提到的，我們繼續執行我們的產品業務，並取得了高於我們收入和盈利預期的穩健財務業績。我們採用了採用修改後的追溯法的 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 ASC 606 下的結果與先前在 ASC 605 下的結果之間的任何比較都不是追蹤我們公司進展的準確方法。我們將繼續提供許可帳單等營運指標，讓投資者更了解我們的營運績效。

We delivered revenue of $57.4 million and licensing billings of $63.1 million. Revenue was higher than our expectations due to strong buffer chip sales. We have a very strong balance sheet and ended the quarter with a cash, cash equivalents and marketable securities of $338 million, flat from the previous quarter as cash from operations of $25.6 million was offset by cash used for the acquisition of Northwest Logic.

我們實現了 5,740 萬美元的收入和 6,310 萬美元的授權費用。由於緩衝晶片銷售強勁，收入高於我們的預期。我們擁有非常強勁的資產負債表，本季末現金、現金等價物和有價證券為 3.38 億美元，與上一季持平，因為 2,560 萬美元的營運現金被用於收購 Northwest Logic 的現金所抵銷。

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 chips and silicon IP.

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我們擁有強大技術和市場專業知識的鄰近領域的成長，重點是晶片和矽知識產權。

Now let me talk you through some revenue details on Slide 7.

現在讓我向您介紹幻燈片 7 上的一些收入詳細資訊。

Revenue for the third quarter was $57.4 million, above our expected range due to market share gains in our buffer chip business. Royalty revenue for the third quarter was $19.4 million, while licensing billings was $63.1 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.

由於緩衝晶片業務的市佔率增加，第三季營收為 5,740 萬美元，高於我們的預期範圍。第三季的版稅收入為 1,940 萬美元，授權費用為 6,310 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 product revenue was $21.4 million, consisting primarily of our buffer chip business. Our contract and other revenue was $16.6 million, consisting primarily of our silicon IP business. As we expected due to the timing of the close, our acquisition of Northwest Logic did not have a material impact on the third quarter. We recorded $5.1 million of revenue and $6.8 million in operating cost and expenses associated with our Payments and Ticketing business in Q3.

更詳細地說，我們的產品收入為 2,140 萬美元，主要包括我們的緩衝晶片業務。我們的合約和其他收入為 1,660 萬美元，主要包括我們的矽 IP 業務。正如我們對交易完成時間所預期的那樣，我們對 Northwest Logic 的收購並未對第三季產生重大影響。第三季度，我們與支付和票務業務相關的收入為 510 萬美元，營運成本和費用為 680 萬美元。

Let me walk you through our non-GAAP income statement on Slide 8.

讓我向您介紹投影片 8 上的非 GAAP 損益表。

Along with our solid revenue performance in Q3, we met our profitability targets on a non-GAAP basis. Cost of revenue plus operating expenses, or what we referred to as total operating expenses, for the quarter came in at $67.1 million. This was above our expectations due to higher COGS related to record buffer chip revenue. Excluding Payments and Ticketing, our profit was nicely above our expectations.

除了第三季穩健的營收表現外，我們還實現了非公認會計準則基礎上的獲利目標。該季度的收入成本加上營運費用，或我們所說的總營運費用，為 6,710 萬美元。這超出了我們的預期，因為與創紀錄的緩衝晶片收入相關的銷售成本較高。不包括付款和票務，我們的利潤遠高於我們的預期。

We ended the quarter with head count of 840, up from 772 in the previous quarter as we welcome employees from Northwest Logic and converted several long-term contractors into employees in Bangalore.

本季結束時，我們的員工人數從上一季的 772 人增加到 840 人，因為我們歡迎來自 Northwest Logic 的員工，並將幾名長期承包商轉變為班加羅爾的員工。

Under ASC 606, we recorded $4.9 million of interest income related to the financing component of our fixed fee licensing arrangements, for which we've recognized revenue but not yet received payment. 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.

根據 ASC 606，我們記錄了與固定費用許可安排的融資部分相關的 490 萬美元利息收入，我們已確認收入但尚未收到付款。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。

After adjusting for noncash interest expense on our convertible notes, this resulted in non-GAAP interest and other income for the quarter of $6 million. Excluding the interest income related to the significant financing component related to ASC 606, this would have been $1 million. Assuming a flat rate of 24% for non-GAAP pretax loss, non-GAAP net loss for the quarter was $2.9 million or a diluted net loss of $0.03 per share.

在可轉換票據的非現金利息支出進行調整後，本季的非 GAAP 利息和其他收入為 600 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，這將是 100 萬美元。假設非 GAAP 稅前虧損統一率為 24%，則本季非 GAAP 淨虧損為 290 萬美元，攤薄後淨虧損為每股 0.03 美元。

Now let me turn to the balance sheet details on Slide 9. We are very pleased with the strength of the balance sheet. Cash, cash equivalents and marketable securities totaled $338 million, flat from the previous quarter as cash from operations of $25.6 million was offset by the purchase of Northwest Logic. Our Q3 ending cash balance doesn't reflect the cash we received for our Payments and Ticketing business nor does it reflect what we expect to pay for the secure silicon IP and protocols businesses of Verimatrix. Given the $93.1 million of cash from operations through our first 3 quarters, we expect over $100 million of cash from operations this year. Our strong balance sheet allows us the flexibility to invest strategically in our patent portfolio and in our growing product programs.

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 3.38 億美元，與上一季持平，因為收購 Northwest Logic 抵消了 2560 萬美元的營運現金。我們第三季末的現金餘額並不反映我們為支付和票務業務收到的現金，也不反映我們預計為 Verimatrix 的安全晶片 IP 和協議業務支付的費用。鑑於前三個季度的營運現金為 9,310 萬美元，我們預計今年的營運現金將超過 1 億美元。我們強大的資產負債表使我們能夠靈活地對我們的專利組合和不斷增長的產品計劃進行策略性投資。

At the end of Q3, we had contract assets worth $560 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.

截至第三季末，我們的合約資產價值 5.6 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。

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.

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。

As the sale of our Payments and Ticketing business did not close until October 21, at the end of Q3 we classified the assets and liabilities for this business as held for sale. The net carrying amount of this business as of the third quarter was $74 million, considering assets and liabilities. After considering the $75 million purchase price and transaction costs, we recorded a recovery of $1.9 million in Q3 that offset the impairment charge in our Q2 GAAP results. We will make another adjustment to reflect final working capital in our Q4 results.

由於我們的支付和票務業務的出售直到 10 月 21 日才結束，因此在第三季末，我們將該業務的資產和負債分類為持有待售。考慮到資產和負債，截至第三季該業務的帳面淨值為 7,400 萬美元。考慮到 7,500 萬美元的購買價格和交易成本後，我們在第三季收回了 190 萬美元，抵銷了第二季 GAAP 業績中的減損費用。我們將進行另一次調整，以反映第四季業績中的最終營運資金。

Third quarter CapEx was $3.2 million and depreciation was $4.4 million. Looking forward, I expect roughly $3 million of CapEx for the fourth quarter, and that makes roughly $9 million for the full year of 2019. I also expect depreciation of roughly $4 million for the fourth quarter and roughly $14 million for the full year of 2019.

第三季資本支出為 320 萬美元，折舊為 440 萬美元。展望未來，我預計第四季的資本支出約為 300 萬美元，這將為 2019 年全年帶來約 900 萬美元的資本支出。我還預計第四季折舊約為 400 萬美元，2019 年全年折舊約為 1,400 萬美元。

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

總體而言，我們擁有強勁的資產負債表和有限的債務，預計未來將繼續從營運中產生強勁的現金。

Now let me turn to our guidance for the fourth 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 上我們對第四季的指導。提醒一下，我們的前瞻性指導反映了我們目前的最佳估計，我們的實際結果可能與我即將審查的結果有重大差異。

In addition to financial outlook under ASC 606, 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 16 of our earnings deck, licensing billings closely correlates with what we had historically reported as royalty revenue under ASC 605. We expect to close our transaction with Verimatrix in Q4 as we complete regulatory approvals and other customary closing conditions. Until we close, those financial results will not be included in our guidance.

除了 ASC 606 規定的財務前景外，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。正如您在我們的損益表投影片 16 上提供的補充資料中所看到的那樣，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。隨著監管部門的批准和其他慣例成交條件的完成，我們預計將在第四季度完成與 Verimatrix 的交易。在我們關閉之前，這些財務業績將不會包含在我們的指導中。

With that said, under ASC 606, we expect revenue in the fourth quarter between $50 million and $56 million. We expect royalty revenue between $15 million and $21 million. We also expect licensing billings between $60 million and $66 million. Excluding the Payments and Ticketing business, we expect Q4 non-GAAP total operating expenses, which includes COGS, to be between $59 million and $63 million.

儘管如此，根據 ASC 606，我們預計第四季的營收將在 5,000 萬美元至 5,600 萬美元之間。我們預計特許權使用費收入將在 1500 萬美元至 2100 萬美元之間。我們也預計許可證費用在 6,000 萬至 6,600 萬美元之間。不包括支付和票務業務，我們預計第四季非 GAAP 總營運支出（包括銷貨成本）將在 5,900 萬美元至 6,300 萬美元之間。

We remain focused on our execution and are very pleased with our continued market share gain in our buffer chip business. We now expect that business to nearly double year-over-year, ending near the high end of the $50 million to $70 million range we anticipated previously. Under ASC 606, non-GAAP operating results for the fourth quarter is expected to be between a loss of $12 million and $2 million. The non-GAAP interest and other income and expense, which excludes interest income related to ASC 606, we would have expected $1 million in income, which includes $0.6 million of interest expense related to the notes due in 2023.

我們仍然專注於我們的執行力，並對我們在緩衝晶片業務中持續獲得的市場份額感到非常高興。我們現在預計該業務將年增近一倍，接近我們先前預期的 5,000 萬美元至 7,000 萬美元範圍的高端。根據 ASC 606，第四季非 GAAP 營運業績預計將虧損 1,200 萬美元至 200 萬美元。非 GAAP 利息及其他收入和支出（不包括與 ASC 606 相關的利息收入），我們預計收入為 100 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 and 2020 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 tax rates in our foreign jurisdictions. As a reminder, we pay roughly $20 million of cash taxes each year driven primarily by our licensing agreements with our partners in Korea. We expect non-GAAP taxes to be between a benefit of $3 million and 0 in Q4. We expect our Q4 share count to be roughly 115 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 年和 2020 年的預計稅率將與 2018 年約 24% 的預期稅率保持一致。24% 高於新的法定稅率 21%，主要是因為我們外國司法管轄區的稅率較高。提醒一下，我們每年繳納約 2000 萬美元的現金稅，主要是由於我們與韓國合作夥伴簽訂的許可協議所致。我們預計第四季非 GAAP 稅款收益將在 300 萬美元到 0 之間。我們預計第四季的流通股基本股和稀釋股約為 1.15 億股。這導致本季非 GAAP 每股虧損為 0.08 美元至 0.01 美元。

Looking ahead to 2020, we remain comfortable with the business outlook we provided at our Analyst Day in September. I expect our revenue trends by quarter to be similar to 2019, with Q1 down seasonally, slight improvement in Q2 and then growth in Q3 and again in Q4.

展望 2020 年，我們對 9 月分析師日提供的業務前景仍然感到滿意。我預計我們的季度營收趨勢將與 2019 年類似，第一季季節性下降，第二季略有改善，然後第三季成長，第四季再次成長。

I expect our total expense trends, including COGS, will be more linear through the year, with small increases in Q3 and Q4 for higher product shipments. I also expect CapEx of $26 million for 2020, roughly half of which related to our headquarter move in the first half of the year, and depreciation of $29 million.

我預計我們的總費用趨勢（包括銷貨成本）將全年更加線性，第三季和第四季產品出貨量將小幅成長。我還預計 2020 年的資本支出為 2,600 萬美元，其中大約一半與我們上半年的總部搬遷有關，折舊為 2,900 萬美元。

Let me finish with a summary on Slide 11. We are 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've had a significant amount of M&A activity as we refocus our company, and are very pleased with our execution on organic and inorganic growth. While we understand that ASC 606 added a level of complexity to our financial reporting, and 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。隨著我們重新調整公司的重點，我們進行了大量的併購活動，並對我們在有機和無機成長方面的執行感到非常滿意。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 have refocused our product portfolio around Rambus' core strength in the semiconductor industry, improved our operational efficiency and profitability, generated solid cash from operations, and leverage our strong balance sheet to support our strategic initiatives. We continue to focus on our core markets and are very 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。我們繼續專注於我們的核心市場，並為長期獲利成長做好了充分準備。

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

之後，我會將電話轉回博尼塔以開始問答。我們可以問第一個問題嗎？

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

（操作員說明）您的第一個問題來自羅斯資本的Suji Desilva線路。

Luc, Rahul, congratulations on the strong cash generation here. So every quarter, I try and go through these numbers to make sure I get the kind of as-if 605 pro forma correct. If I do the math correctly. So for Rahul, for 3Q '19, I get revenue of $101 million, would have been reported and EPS of $0.23. Do those numbers sound reasonable?

Luc、Rahul，祝賀這裡產生了強勁的現金收入。因此，每個季度，我都會嘗試檢查這些數字，以確保我得到的 605 預估數據是正確的。如果我計算正確的話。因此，對於 Rahul，19 年第三季的收入為 1.01 億美元，報告的每股收益為 0.23 美元。這些數字聽起來合理嗎？

So Suji, I -- we can't report the 605 numbers anymore, as you know. But if I were to do that math that I think you're doing, I'd get the same numbers.

所以 Suji，我——如你所知，我們不能再報告 605 號碼了。但如果我按照你所做的那樣進行數學計算，我會得到相同的數字。

Okay. Good to know. And then for 4Q '19, a couple of moving parts here. But it seems like if I put it together, I can get to something like $98 million midpoint revenue guidance and $0.25. And if you back out the Payment and Ticketing from 3Q, the revenue is a sequential growth. Does that sound right as well?

好的。很高興知道。然後到 19 年第 4 季度，這裡出現了一些變化。但如果我把它們放在一起，我可以得到大約 9800 萬美元的中點收入指導和 0.25 美元。如果從第三季開始取消支付和票務業務，收入將環比增長。這聽起來也對嗎？

Yes. Again, I understand the math that you're doing, and I would get the same results, but that's not math that we can do at the company.

是的。再說一次，我理解你正在做的數學，​​我會得到相同的結果，但這不是我們在公司可以做的數學。

Understood. That's fair enough. Okay. And then for the business for '20, you reiterated the guidance from the Analyst Day. Can you give us maybe some more color or detail on what Northwest Logic or Verimatrix contribute to the '20 run rate so we have some idea, be it inorganic versus organic year-over-year?

明白了。這很公平。好的。然後，對於 20 世紀的業務，您重申了分析師日的指導。您能否給我們更多關於 Northwest Logic 或 Verimatrix 對 20 年運行率的貢獻的信息或細節，以便我們有一些想法，無論是無機還是有機同比？

Yes, absolutely. So what we expected, and we said this at our Analyst Day in September in New York, is we expected Northwest Logic to generate roughly $10 million of revenue for us in 2020, and we expect the businesses from Verimatrix, or formerly Inside Secure, to generate roughly $20 million of revenue for us in 2020. And both of these should be eminently accretive to our EPS. Now as a reminder, we have our significant -- or a significant portion of 2019. So when you take those numbers out of 2019, you see very nice growth across the board in our product businesses. You see product revenue, I think what we said is we now expect to be at the high end of our range for 2019 of almost $70 million. And again, that's almost entirely our buffer chip business.

是的，一點沒錯。因此，我們的預期（我們在9 月於紐約舉行的分析師日上表示）是，我們預計Northwest Logic 將在2020 年為我們帶來約1000 萬美元的收入，並且我們預計Verimatrix（即以前的Inside Secure）的業務將2020 年為我們創造約 2,000 萬美元的收入。這兩者都應該顯著增加我們的每股盈餘。現在提醒一下，我們已經度過了 2019 年的重要時刻。因此，當你把 2019 年的這些數字拿出來時，你會發現我們的產品業務全面成長。你看產品收入，我想我們所說的是我們現在預計 2019 年將達到近 7,000 萬美元的高端。再說一次，這幾乎完全是我們的緩衝晶片業務。

I think what we said in September is that our range for the product revenue in 2020 is between $75 million and $95 million. So that's a business that's growing very nicely. What you also see is growth in our silicon IP business, and that's really reported as contract and other. As a reminder, there's about $20 million billings that we have in licensing billings that we think are really directly related to that silicon IP business. So if you had -- I think what we said in September, between $70 million and $90 million, or $80 million as the midpoint, you add that $20 million. And I think in 2020, that's almost $100 million of billings associated with our silicon IP business, which is a really nice growth over '19, both organic and inorganic. So we're certainly pleased with our execution on our business.

我認為我們在 9 月所說的是，我們 2020 年的產品收入範圍在 7500 萬美元到 9500 萬美元之間。所以這是一項發展非常好的業務。您還可以看到我們的矽 IP 業務的成長，這實際上是作為合約和其他業務報告的。提醒一下，我們的授權帳單中有大約 2000 萬美元的帳單，我們認為這些帳單確實與矽 IP 業務直接相關。所以，如果你——我想我們在 9 月所說的，在 7000 萬美元到 9000 萬美元之間，或者 8000 萬美元作為中點，你就加上 2000 萬美元。我認為到 2020 年，我們的矽 IP 業務相關的營收將接近 1 億美元，無論是有機成長還是無機成長，這都比 19 年成長得非常好。因此，我們對業務執行當然感到滿意。

As we've talked about repeatedly, Suji, what we see is structural -- in our structural patent licensing agreement, we received step-downs in certain agreements that we have. And what you see is then that product growth is offsetting any step-downs that we have, and we're also growing from a bottom line and from a cash from operations perspective as well. So we're very pleased with our performance in the guide.

正如我們反覆談到的那樣，Suji，我們看到的是結構性的——在我們的結構性專利許可協議中，我們在某些​​協議中收到了降級。然後你會看到，產品的成長正在抵消我們的任何降級，而且我們也在從利潤和營運角度的現金角度成長。所以我們對指南中的表現非常滿意。

Okay. That's a lot of helpful color, Rahul. Appreciate that. And then a couple more questions before I pass it on. The DDR4 memory, you had kind of upside versus your expectations. Was this driven potentially by perhaps the hyperscale or data center recovery that Intel called out? Or are there competitive factors versus IDT, [Samsung] and such, that might be also in the mix here?

好的。這是很多有用的顏色，拉胡爾。感謝。在我繼續之前還有幾個問題。DDR4 記憶體與您的預期相比有一定的優勢。這是否可能是由英特爾呼籲的超大規模或資料中心復原所推動的？或者是否存在與 IDT、[三星] 等競爭因素，這些因素也可能在這裡混合？

Hi, Suji. It's actually both. We do see some recovery in the market. We see the inventory levels normalize in the market, and demand is up from data center and they resume purchase to our customers. So that's one factor. The other factor is that we are starting to see the results or continue to see the results of our design win activity on the Cascade Lake platform, where our footprints of design wins was twice what it was on the Skylake platform. So the combination of our increase of footprint in design wins with the recovery of the memory market explains these results for the buffer chip.

嗨，蘇吉。實際上兩者都是。我們確實看到市場出現一些復甦。我們看到市場庫存水準正常化，資料中心的需求增加，他們恢復向我們的客戶採購。這是一個因素。另一個因素是，我們開始看到或繼續看到我們在 Cascade Lake 平台上的設計獲勝活動的結果，我們的設計獲勝足跡是 Skylake 平台上的兩倍。因此，我們在設計中佔位面積的增加與記憶體市場的復甦相結合，解釋了緩衝晶片的這些結果。

Okay. And my last question is, you talked about closing a set of deals here in the quarter. I was curious what the numbers were relative to that, the number you reported in the most recent quarters, whether that's a typical level of number of deals you'll see or if there's more or less in a typical quarter historically?

好的。我的最後一個問題是，您談到了本季完成的一系列交易。我很好奇這些數字與此相關，您在最近幾個季度報告的數字是多少，這是否是您將看到的交易數量的典型水平，或者歷史上一個典型季度的交易數量是否較多或較少？

Yes, I think Q3 was very active for us because we were able to announce the divestiture of our Payments and Ticketing, and then we also announced the closure of Northwest Logic and our intent to acquire the business from Verimatrix. I think we have an opportunity. We have a very strong balance sheet, and we definitely have an opportunity to continue to drive more inorganic growth. But it's really driven by what the opportunities are and how they align from a timing perspective. I think we will continue to be judicious. What I'm very pleased with is that, certainly, the execution on the divestiture of Payments and Ticketing helped refine our focus back to our semiconductor business. And certainly, the acquisitions of Northwest Logic and what we expect to acquire from Inside Secure, very nicely bolster both our memory and security portions of that silicon IP business. But I think we certainly will expect to continue to look forward to other inorganic opportunities.

是的，我認為第三季對我們來說非常活躍，因為我們能夠宣布剝離支付和票務，然後我們也宣布關閉 Northwest Logic 以及我們打算從 Verimatrix 收購該業務。我認為我們有機會。我們擁有非常強勁的資產負債表，我們絕對有機會繼續推動更多的無機成長。但它實際上是由機會是什麼以及它們如何從時機角度調整來驅動的。我認為我們將繼續保持明智。我非常高興的是，支付和票務剝離的執行確實有助於我們將重點重新集中到半導體業務上。當然，收購 Northwest Logic 以及我們期望從 Inside Secure 收購的產品，都很好地增強了我們矽 IP 業務的記憶體和安全部分。但我認為我們肯定會繼續期待其他無機機會。

Your next question comes from the line of Gary Mobley with Wells Fargo Securities.

您的下一個問題來自富國銀行證券公司的加里‧莫布里 (Gary Mobley)。

There's no response from that line. We'll go to the line of Sidney Ho with Deutsche Bank.

該線路沒有任何回應。我們將前往 Sidney Ho 與德意志銀行的電話線。

Just want to follow-up the previous questions. At the Analyst Day, you gave a full year guidance for next year's architecture license billings of $220 million to $240 million, which is down about 1 -- about 10% from this year, just taking the midpoint of the guidance. One, is that still a valid assumption? And if so can you help us understand the moving pieces, how much of that decline is related to sale of the Ticketing business, how much related to any scheduled step down like we've seen this year? And what kind of growth does it mean for the rest of the businesses?

只是想跟進之前的問題。在分析師日，您對明年的架構許可證賬單給出了 2.2 億至 2.4 億美元的全年指導，比今年下降了約 1% - 約 10%，僅取指導的中點。第一，這仍然是一個有效的假設嗎？如果是這樣，您能否幫助我們了解一些變化，其中有多少下降與票務業務的出售有關，有多少與我們今年看到的任何預定的裁員有關？這對其他企業意味著什麼樣的成長？

Yes, it's a great question, Sidney. And what I'll tell you is that there's really not that much of that, that's related to the Payments and Ticketing business. Most of the revenue in the Payments and Ticketing business was more in the contract and other segment. We did have a little bit in that licensing billings, but most of the revenue that we recognized in Payments and Ticketing was under contract and other. It really is almost entirely related to just the structure of our licensing agreements.

是的，這是一個很好的問題，西德尼。我要告訴你的是，與支付和票務業務相關的實際上並不多。支付和票務業務的大部分收入更多來自合約和其他部門。我們確實有一點許可費用，但我們在支付和票務方面確認的大部分收入都是根據合約和其他收入。它實際上幾乎完全與我們的許可協議的結構有關。

What we did is we signed long-term licensing agreements for 2014, '15, '16 and '17. And those have very defined structures in terms of how much we are able to collect from our partners each quarter. There are some of those agreements which are royalty-based. And so you will see some variability in terms of what we come in. But really, it's almost entirely related to just the structure of those agreements. What we found is that those years were very strong for many of our partners. And our partners, you took that as an opportunity when they were having strong years to upfront some of the payments that they had in those agreements. What we looked at is what's the total value, and we're very comfortable with that total value.

我們所做的是簽署了 2014 年、'15、'16 和 '17 的長期許可協議。就我們每季能夠從合作夥伴收取的金額而言，這些都有非常明確的結構。其中一些協議是基於特許權使用費的。因此，您會看到我們的產品存在一些差異。但實際上，這幾乎完全與這些協議的結構有關。我們發現，那些年對我們的許多合作夥伴來說都非常重要。我們的合作夥伴，當他們在經濟繁榮時期，您將此視為一個機會，可以預付這些協議中的部分付款。我們關注的是總價值是多少，我們對這個總價值感到非常滿意。

But again, to answer your question, it's almost entirely related to the structure. Looking forward beyond 2020, I'd expect it to be roughly flat with what we showed here. There are upsides. I think one thing that we've talked about that's very difficult for us to predict is, is really what happens with China. And again, how that happens and how those agreements are structured are going to be something that we'll work through. But hopefully, that helps to answer your question.

但再次回答你的問題，它幾乎完全與結構有關。展望 2020 年以後，我預計它將與我們在這裡展示的大致持平。有好處。我認為我們討論過的一件我們很難預測的事情是，中國到底會發生什麼事。再說一遍，如何發生以及如何建立這些協議將是我們將解決的問題。但希望這有助於回答您的問題。

No, that's helpful. Follow-up question is on the CryptoManager business, you announced a design win with Micron at the end of last year, and I think Micron just announced that product as -- and service, as a matter of fact, just a couple of weeks ago. Can you help us understand your revenue opportunity there? How do you think about the ramp? How would it look like? And maybe compare and contrast with some of the -- well, I guess, the other customer that you have announced in the past.

不，這很有幫助。後續問題是關於 CryptoManager 業務，您在去年年底宣布了與美光的設計勝利，我認為美光剛剛宣布該產品和服務，事實上，就在幾週前。您能幫助我們了解您在那裡的收入機會嗎？您如何看待坡道？它會是什麼樣子？也許可以與您過去宣布的其他客戶進行比較和對比。

Yes. Thanks, Sidney. Just to clarify things. So our CryptoManager Device Key Management system is the software foundation that Micron is using for the Authenta key management services and for the IoT applications. So it's nice to see that this product is being commercialized. As every one of our CryptoManager deals, it's a combination of license to that customer that sometimes is linked to our volume tiers. And that's the kind of business model that we have, and we cannot give more details than that. But it's a great opportunity for us. We are the software foundation for the IoT services based on that memory that they just announced.

是的。謝謝，西德尼。只是為了澄清事情。因此，我們的 CryptoManager 設備金鑰管理系統是美光用於 Authenta 金鑰管理服務和 IoT 應用程式的軟體基礎。所以很高興看到這個產品正在商業化。正如我們的每項 CryptoManager 交易一樣，它是該客戶的授權組合，有時與我們的大量層級相關聯。這就是我們所擁有的商業模式，我們無法提供更多細節。但這對我們來說是一個很好的機會。我們是基於他們剛剛宣布的記憶體的物聯網服務的軟體基礎。

Okay. Maybe one quick question for me. In terms of the 5G side of things, we've been hearing -- there's a lot of acceleration of 5G infrastructure build-out. And the expectations for 5G handsets are quite high, maybe 200 million, 250 million units next year. Can you help us understand how and when you will start benefiting from that kind of rollout?

好的。也許有一個簡單的問題想問我。就 5G 而言，我們聽說 5G 基礎建設大幅加速。而且人們對5G手機的預期相當高，明年可能會達到2億、2.5億支。您能否幫助我們了解您將如何以及何時開始從這種推出中受益？

Yes, sure. That's a great question. We actually start to benefit from the deployment of 5G. One of the key interfaces being used in 5G systems is PCIe -- PCIe Gen 5 interface using SerDes at 32-gig per second. So a lot of the design wins that we have announced over the course of the past quarters actually used in SoCs that are being used in 5G infrastructure. So the way we benefit from 5G is actually people designing SoCs with that type of interfaces that are required for 5G. In the call today, we mentioned several types of applications that are using our IP cores. I will just add -- to ask -- to add to this that these are with very large cap customers, trendsetters, and one of them is actually addressing the 5G market.

是的，當然。這是一個很好的問題。我們實際上開始從5G的部署中受益。5G 系統中使用的關鍵介面之一是 PCIe——使用 SerDes 的 PCIe Gen 5 接口，速度為每秒 32 GB。因此，我們在過去幾季中宣布的許多設計成果實際上都用於 5G 基礎設施中使用的 SoC。因此，我們從 5G 中受益的方式實際上是人們設計具有 5G 所需介面類型的 SoC。在今天的電話會議中，我們提到了使用我們的 IP 核的幾種類型的應用程式。我只想補充一點——詢問——補充一點，這些都是非常大的客戶、潮流引領者，其中之一實際上是在解決 5G 市場。

(Operator Instructions) At this time, there are no further questions. I would now like to turn the conference back over to Luc.

（操作員說明） 此時，沒有進一步的問題。我現在想把會議轉回給呂克。

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

謝謝大家一直以來的關注和時間，祝您有美好的一天。謝謝。

This now concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。