Rambus (RMBS) 8 Feb 222021 Q4 Earnings call transcript

Welcome to the Rambus Fourth Quarter and Fiscal Year 2021 Earnings Conference Call. At this time all participants are in a listen-only mode. At the conclusion of our prepared remarks, we will conduct a question-and-answer session. [Operator Instructions].

As a reminder, this conference call is being recorded. to of conference Finance like Lynch, to now President Vice and would turn over the Des I Investor Relations.

your begin may conference. You

with Thank with conference to full you, and CEO Investor results Lynch, the Interim the CFO. welcome and on be fourth on Finance has is; The operator, and the that the Luc and quarter we our our for call today will will VP Jones replay the Keith been next of year A today I call. release Rambus filed results SEC Form-XK. Relations, call XXX-XXX-XXXX. am of discussing be me press week this at Desmond for XXXX and available Seraphin,

number the entering you can XXX-XXXX when number, prompt. and then You replay toll the hear hear ID by dialing free the

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accurate XXX ASC Any as the through XXX slide our on of between progress. release financial in prior is X-Ks, materially In periods, in using a and with our clarity are results statements. presentation Our financial deliver company's of XXXX supply during related from revenue differ including this uncertainties included discussion of balance on page and reported the in results retrospective obligation to expectations and XXX discussed rates, including sustainability the Investor call the release, forward-looking related Relations presentations to business we other we are of of no activities, opportunities activity, SEC, our this not increased company’s and ability in product beginning are statements may and statements, more non-GAAP merger, term to sheet success drivers, measures long fully our GAAP under prior We and divestiture provide under quarter to the and risks the manage rather press track integration effect under call. its serve, and or to today and markets cumulative in and operating the ASC variance forward-looking XX-Ks. growth press of acquisition and first for of timing and the effort a our on impacts our guidance our generated maybe efforts, effects benefits company's demand that effectively restate the under the way in industry revenue described our we rambus.com COVID-XX directly the website Financial subject our expected ASC A profitable the financials both better Releases. GAAP the to XX-Qs been of actual using and method, the and statements adjustment. adverse update expected adoption we cash technologies, from both earnings XXX will to arising company’s term XXXX, These at investment results did amongst strategies, risks the launches, long these an for the has growth ability documents growth, including outlook product shortages, potential and and product the opportunities, retained existing the most regarding are acquired contain not which ran to newly reconciliation the financials, comparison These company's chain and but modified things. from file an ASC of adopted these comparable non-GAAP and various

as end an continue will performance. such the overview call financial our will to The will provide of to license the of call order business; will investors our will be with into to Luc then with we of our metrics operational today to results; provide as better over billings operational follows: quarter. insight give turn start now I Q&A. discuss will Keith Luc the the an and overview We Luc?

for quarter you product operations year by million was XX million $XX year revenue, an and in also XXXX QX, with quarter a $XXX year. driven cash generation. everyone. exceeding set a revenue the grow. Des annual It record excellent strong Thank targets and quarter. great We full teams and Rambus, million profitability its at from in execution in and We with delivered a continued for global good was afternoon our high for an outstanding by for fourth new cash $XX.X the

strong operations ability Our from and products return to to continue stockholders. generate us new to both, in to cash allows to invest value

up the diverse to and key an quarter the revenuecontributions As offerings continued year quarter's the million, record IP year We XXXX. patent the is scale roughly that full performance. throughout XX% over continue annual and Memory $XX over drove business, business for we product Silicon revenue of benefit XX% milestones at Chips, which growing as business last achieved record. brought record portfolio by Chip from $XXX licensing. Interface we This Chips to million, consecutive such the second to a and revenue of balanced product the

our systems. volume footprint We generation continue a to DDRX qualification has This focus growing on production generation product in next and RCD. execution in is first with

As we we mentioned were the first also sample DDRX a generation quarter, to second last RCD.

cycle. begun however, the for Being given us to DDRX We share supply has chains. in wide on customers orders transition first-to-market semiconductor half year. year; an gain have are is the to edge We continued challenges the during pre-production DDRX receiving acknowledge of second our important the second a strong to industry products sampling generation had and it

these our closely we challenges, minimize results the in delivered ability with on Despite for any continue proactively the focus We supply business to growing of and meet and working chain to partners and record supply grow to to demand XXXX. our impact are expect chain our products. the disruptions

broaden continued range new products the companionships financial to solutions. In available the addition DDRX of Rambus to Interconnect with the the development and market ongoing CXL record team of performance, and

now we investments million turn scale IP. Silicon combination grown year disciplined in to a strategic and a have $XXX continues business, Through the a rate to over and of to it execution Let’s run bookings to grow. of

HBM, PCI IP We a in target are and areas, Security see our number design focus growing wins chosen of across including markets. CXL, our leading and Express

with business year our closed increased to our roadmap investments. and closing, and stockholders acquired gives center of Companionships, the the key RCD Rambus the IP company. ESG that contributes two our time we data conscious to production with DDRX our design developed product our double IP and for in did. address markets in additional milestones, ability achieved. to shares through and welfare the companies exceptional agreements, performance finally, investment to leverage environmentally in in We working next solidifying bold share. ramp an and revenue very $XXX diversity deliver and product base streams, the the and of we commitments solutions growth years edge our cash with has the the an launch And the team world-class We solutions and key the Silicon technology like leadership CXL the the augmenting Silicon foundation come. million expanded sustained for our and companies, customer with said that I'm are Our was to the proud market expanding to the are Domino's. values integrated would relevance profitable company’s an generation this helping what We including the portfolio. our patent team center in It also We ensuring licensing initiative we share program. of IoT employees we extended development In and health of data successfully us continued generation returned and balance of our community. repurchase accelerated to releases automotive ecosystem. We the We DDRX our and

art new industry technologies Chips, to a the product With the and new transitioned of the memory map the demand expansion interface and of security our road technology state growing for across into we beyond. call over of With Keith I’ll the to financial results. markets are applications, and the the turn excited to about wide that, for prospects quarterly discuss Keith. very XXXX and range

Luc. Thanks

the operations. cash and profitably success all-time from testament delivered Let’s our for an us financial contributions growing begin XXXX fourth in The for flow with a in with products XX% million and company generating the results growing as revenues evolution great in is our on to a results we full year quarter quarter again product clear cash summary our record company. is a of the five. $XX.X and Once this slide for

capital us helped that’s and cash, generate our consistently growth return invest to shareholders. drivers consistently strategic ability Our both in to

non-GAAP $XX.X in our licensing consisting six. income through don’t as billings we Chip of $XX.X was timing $XX.X on same was Revenue primarily primary was revenue revenue for royalty and our million, the Product to Interface recognize our difference revenue Royalty our revenue million, you exceeding as was always between quarter The walk $XX.X expectations. statement relates bill the billings we while slide business. licensing customers. Memory million, million. me fourth Let quarter

revenue from delighted for challenges strong the mentioned, revenue to our our industry record seen expectations. Memory chain consisting Chip of despite Interface in Silicon Luc our Operating company including operating in at cost Contract sold such are and came million. supply business. million $XX.X $XX.X we million, primarily were customers. a with As demand other was the cost, our and in for IP $XX.X of of quarter the was Total goods line expenses see

growth. quarter quarters with to further ASC product from interest investments continue portfolio. related to We cash flat we financing interest income our prior drive resulted the expense $XXX,XXX. adjusting term total product After Under arrangements, XXX component licensing other the was interest have fourth $X.X we for long quarter associated $XXX,XXX relatively income of not convertible our this received incremental on expand which million roadmap primarily This and headcount fee investment expect of in yet for which incurred employees, our non-GAAP We We expense for notes. non-cash ended the revenue help to convertible quarter. coming of of expanding expense, was the fixed interest by of associated recorded interest notes, with the portfolio in and we XXX our with but and to payment. grow our the offset recognized as

assumed have $X.X for environment, million interest we interest XX% other With financed this income again related XXX, income income, execution, to been an of non-GAAP in difficult net million. finishing quarter Excluding the [ph] and pre-tax delivered expense. was chain $XX.X above expectations. ASC would earnings supply and focus non-GAAP disciplined rate a Using flat tax of wide for of

the ended up We me Now, equivalence previous with $XX.X million. to totaling quarter sheet details operations turn on seven. quarter $XXX.X let cash balance from from securities generated we million, marketable cash, the the cash slide of and as

and continue future million, which the As on performance At accounts contacted of we we executive efficiency, $XXX.X the which revenue licensing strong assets the deliver deliver obligations. we future. to cash in operational expect receivables QX the worth the arrangements, for to from topline of value related operations company unbilled no had end reflects net on to has

We the licensing expect we not our entire It metric to this existing as represent contracts. collect continue to to for note trend important of and that is bill this these number value agreements. down does

while quarter renewal CapEx that $XX.X cash flow allows the of restructure recognize to our patent was agreements free was in a As Fourth We million, each manner opportunity revenue us at $X.X in million. $X.X quarter. delivered million we quarter. depreciation each

Looking million. a for $X CapEx the roughly to quarter expect forward, we first

and differ looking current our reflects As forward our about this a I'm actually could to from guidance time, estimates review. best results the reminder, what at

also licensing information our to invoiced adjusted an the In addition the customers differences. amounts we've billings, XXX, under been which operational that ASC period metric during financial licensing for on certain reflects outlook is providing to

historically As we we have with reported ASC reported XXX. royalty correlates closely historically, as under billings what licensing had revenue

million $XX slide for ASC eight. to on the XXX $XX quarter we in our guidance Under expect Now let first the quarter and me first revenue million. between turn

revenue between billings million, million. licensing royalty expect between million $XX and $XX $XX and We million $XX and

million. We as non-GAAP ASC expect initiatives quarter cost results include profit non-GAAP $XX QX million sold operating product and increase XXX, $XX to first of strategic is million portfolio. goods our expanding a between total investments our $XX of and and $XX for operating between which we Under the expected costs and million

ASC For non-GAAP interest and other which to income interest excludes XXX. expense, related and income

expense expect $X of which We includes million notes of convertible during approximately expense, $XXX,XXX related interest XXXX. to

tax The XX%. rates at jurisdictions. the the to expect of forma rate higher We statutory rate than our tax roughly pro remain to higher XX% XX%, tax is due consistent foreign in primarily

by partners Korea. cash reminder, agreements taxes roughly $XX pay our driven primarily of million with licensing each year, a we As in

non-GAAP in of expect expense million taxes an $X between We QX. million to $X be and

share $X.XX for million anticipate Overall, a to expect diluted outstanding. non-GAAP We to range we basic count share QX $X.XX and per be earnings XXX and the roughly quarter. between shares

on Let summary me finish slide a nine. with

Our investment XX% product Chip growth term financial share. showed our I’m profitability, saw execution. a $XXX.X great business been pleased year-over-year environment. With chain to results as drive growth challenging we revenue with of continue industry-wide outpace for We growth growth sustained This record supply and market continued reflecting and market Interface XXXX and our long our annual in that and million said, the achieved being has gain during strategies.

also a momentum scale to annual million. rate run performance show continues in record as excess an business had with year the business Silicon of Our great $XXX IP excellent and and

reminder, business XXXX approximately million $XX IP our in that’s there Silicon in of a licensing reflected was our As billings.

business backbone It licensed our financial patent remains base. continues the of provide results. and financial Our predictable consistent to

revenue for full the Our year. in ability profitably flows record from to operations $XXX.X cash of grow million resulted

made we anticipate return serve proven fund we data stock in in well invest where focused great success growth. This and XXXX. helps a and programs. center will future generation foundation execution, we with for positioned to track as term our in initiatives markets value our Our strides our make the Leveraging inorganic cloud long product through the strategic are of as strength, shareholders cash portfolio, repurchase to us our record acquisitions,

the turn appreciate we to I’d I Q&A, With back open team to dedication and commitment continued thank continued truly like Before call XXXX. your resilience for their execution Can and we call up our these during I’ll to Q&A. the times. the our success question? look begin in employees as forward have work, that, uncertain operator all to the We first

Instructions]. [Operator Keith. you, Thank

Gary question Fargo Mobley the Your of Securitas. line from comes first with Wells

Your line now is open.

afternoon everybody. Good

Let side to it's can what your what the a revenue buffer the get start good some give congratulate of week-by-week update situation, I to be particular enough if specifically. the and a current supply front start on on extent perhaps in you by asking a chip me dynamics constrained your of where if the and are finish the situation maybe out chip and demand is I about know we us by strong to from year partners, well. the to and supply to of seems fiscal I'm year. you curious, in an a wanted to so, your trying that if product terms visibility on business, as

supply year, over for Gary! grew QX, Look, over for we yet our your the chip, quarter constraints last yes Hi this we previous previous to the quarter. have Thanks question. and XX% XX% grew revenue buffer we in the

we our that. environment a what with We $X million gain and revenues this do to half and with I supply to have the beyond million we until we and continue we working With to we visibility in visibility said both demand. low of the in our so impact, are And able disruption the had share XX happy stay today. as Unfortunately we single are have to this this are going minimize any weekly year. very in supply the our maximize could grow literally think is to from the facing the second of don’t with question, partners customers. much days and last that We with more our the year on we had required. market basis digits, So was are suppliers that revenue we growing a generated you are

year. a of fact driven market started DDRX vast be platforms think the the we in launched I anticipation footprint in we core generation next in to by of generated wins, that had [inaudible] it’s better that the to be terms design DDRX and volume price so shift for to and revenue

So the our our business the the good us for – we It’s design-win are demand footprint is from increasing for growing faster than products. generation-to-generation market.

a with and by suppliers. with basis constrained working are on our We are this weekly we supply

can I And Luc’s to to Gary, add that, point.

But demand noticeable difference are we're our excited seeing. supply very and is demand with there forecast however, We the that our forecast. a between

So with and momentum seeing DDRX DDRX from are we really perspective, said, are great the from traction a in demand pleased making we just Luc and as are we marketplace. the

bit the However fundamentally little from if a more for color, the put business. what add part business, a constrained process, really year perspective perspective. with to our supply are see analysts out consensus have earnings to for QX to we manage product We are supply a look models XXXX full as that's numbers we at we line clearly the for quarters, for how that product take a consensus will and we from is the but within the the those due of see constraints. that differences some and what full the product year in revenue And the

days that's and still good bit challenge. a we visibility have little talked a for the why as it's XX had for out, bit look cautious we but more about, further Luc So we're

it. I color Kevin Luc. the appreciate Got and there,

On give year your market represent the at Is sense exit revenue lager DDRX? moving to us at DDRX the if can relative chip DDRX you the the it rate an as fiscal in you would buffer might and it I the is a well, topic how of a share run of end higher? today. then realized of But mix business, chip what the of characterize maybe total buffer probably

Gary. Great question

going as from and to we one the a be might market, QX, where other. typically have happens combination not generation we is first be higher It earlier, so will to of ASC this move you just the the when said reflective. shifted the DDRX to are the in think this sense that market I the on quarter properties it

aspect year. the other the build next that, question preparation to of of in DDR for the had launch The is manufacturer platform the

a unusually platform of fourth quarter, high which unusually an is prelaunch normal for high ASC. So have combination demand with the we for in the DDRX

this over is think I to time normalize. be going

and we said said, between and are is year about know outlier time going an the that that to you I talked confident for As Keith But is revenue, the with would XXXX DDRX QX in over pricing QX that standpoint. with as normalize. we from quarter DDRX

Ho with line question next Sidney comes of your And Bank. from Deutsche the

open. is line Your

my add Great. guide. quarter I’ll congratulations; very a solid and

You the product the follow-up is know on side. with previous question first just question a my

your related gross QX. when XX% growth of gross you takes seems product margin. like beyond the maybe product at look good. to be kind seems in it mix like XX%, was kind ASP growth, part. you of the kind quarter, what’s talk very margin first and to product seems was margin you Specifically the gross like year’s What sounds It margin, it reason. strong beyond answered It that, suggesting can the you The do gross already But puts of better about this expect and driving the of on doable.

have stages DDRX in some as of Luc in a margin gross had high normalized however in bit and we of on lot QX XXXX. DDRX at its going more But And margin see a the favorable to due mentioned, starting So a little really are to more relatively during very the ASPs pricing. is Sidney! that we side, Hi having in mix early you XXXX saw gross quarter. XX% was we and ramping

about. throughout year. cycles, at the to going is relative that DDRX DDRX consistently gross the And is be life and margin XX% to overall kind given rate been of see XX% that historically to blending their just is product immediately we’ve going are We to and that talking where

generated consistent $XXX and Okay, capital guys that’s very the Maybe from the to around switching returns, cash call million range. you flow it helpful. operations gears

is You balance million. to know $XXX cash close

of operations. You how think buybacks, in past little [inaudible] to I and not probably the the make is and but year, the Thanks. forward don't of do about within that need but that a think going terms more do it you structure capital much just use In be doesn't opportunistic maybe down you to run more the systematic is note buyback, company longer will a maybe paying of that convertible term. due cash a sense

questions Yeah Sidney, there. great

consistently look that's flow terms back our our we what from capital our allocation of about free returned shareholders consistently something is done. I So of a in return look XX% a into to buybacks history that we’ve take cash at and – and that XXXX, back then we standpoint, if we

XX% look ASR. on If you million take the at a that we returned $XXX XXXX,

at strategy. we done years, a part pick. if particular that overall the But Now time, one our not various, it's the been we’ve you quarter that consistent we capital its have periods of of over take look allocation and of

capital as that’s term. that but structure kind also monitor, So long convertible on how to look we it in something and balanced allocation we want note we the mentioned of overall

to So convertible reviewing the we note might that alternatives on are deeply side; the us. themselves all avail

through So M&A do completely we of for kind to at looking we’ll what to manage also up and allocation, lines want just go which includes really also long capital opportunities. that. But is term

it’s shareholders, committed So to will returning and are the so M&A we balance, look we capital to managing notes. continue actively a convertible for we are

Hosseini comes line your next And from Mehdi with SIG. of question the

Your line open. is

Yes, my thanks for question. taking

to guiding guide this to of ’XX. to what Was XX% Did imply year-over-year you implying? revenue your you are in Keith, want that product product revenue mean I you were Just $XXX year. go million that for back for or

supply the we are see well a is are today what now there that reports Mehdi, perspective, right basically from in out – we and alignment. from

Our forecast there. with what's very consistent looked out

that. little are than think the I a numbers bit higher

from see You maybe so outlook $XXX in million, a I think But $XXX or there. million we out that’s that’s really from just know current supply. based it’s what the on March the

starting sure you. Because I guide misunderstand just momentum I strong given March, a your didn’t year want make with you for you. very Got the were to

gross So a XX% your conservatively with XX% right. million-ish to $XXX margin

it’s the not and topline accurate for a a it’s numbers supply demand clearly just those That’s is, outlook, very outlook. much

very seeing extremely we with pleased are We for that. and DDRX DDRX, with pleased are are we what

follow and adoption you think how versus for of one and Notebook I do going by is follow-up to should by first Notebook, the Okay this or DDRX DDRX and And you exiting this servers a driven of up, Notebook server be the DRAM in think Serve see. about Commercial Luc, do see a year? what you then is DDRX as mix versus that of dynamics different terms

first to think question or introduction maybe profit into all vast demand that Servers. DDRX as majority sheet The this we sites coming I the question, will So is year. or client first later, as us the partnership see not customers for of is far the for put from going to come

So client most I’m the there – buffer for again buffer you is demand the come buffer high in to And the chips, the is know about chip XXX% of chip going the serves. from [ph]. no not talking memory;

The ASP second see from we tend in to part the second is going the crossover with the that that DDRX. do crossover towards XXXX that, The We DDRX and generating revenue and with of next. and view. dynamic with agree in before happen of we mix just is question this is volume XXXX the happening to has one the think our to of report that the middle still the because to or

comes And Pitzer Credit line Suisse. your of next question with John the from

Your line open. is

the around I back whatever you Congratulations make issues versus to for sort full go these or what ask see Thanks wanted the year. this perhaps to demand me issues and understand. there extent solid having to on the whether sure potential the you to I full Look To supply of results. server are direct guys! letting substrate question. in out kind know just Hey of that that's fully you kind of you're issue ecosystem, holding preventing ship that's back

own see from This, issues, Yes, in with the other would we we’ve John. happens coming all yet. not components supply go constrained by We’ve what would seen chain, they directly that be system; chain, them. that our our same we are we not work where the direct seen thanks into are supply markets

disruptions elevate all So we our are them working again, any chain go issues aggregate. channel supply with supply are from extending to our as and we of and supply

you And better supply direct position Luc, How those think worse you share these feel do any that do relative to as as competition. some through issues, you your of you just constraints? though are about or navigate

say, challenges, as to from chain experience everyone Difficult well our as competitors. is buffer us I think supply chips no in

we all that from X%. are [ph] So say market from I grew think suffering grew only year last I the and just that. we XXX% would we

So to quite have challenges work now. Again, think going we days the of well. XX is I as things, into we said one from issues site managed beyond we earlier the that

Kevin next your And question with Securities. Rosenblatt the from line comes of Cassidy

open. Your is line

Yeah, congratulations thanks and also.

you ‘XX the expected And why it suppliers, mention your ‘XX you you're confident half supply that improve. half think I your was second number that had comment, that second expanding will of will from be say you you're last did is better.

not number are we Maybe, going to expand on of suppliers.

second visibility know or they getting new placing we to half may not supplies gone. markets, think see, improve of are we end the because add again just are technologies we suppliers. beyond But XXXX? of unfortunately, that you We little have be on the same have type think as demands it might XXXX, towards going But the same suppliers. we we are again In days. XX things the we Do of older very

to going suppliers. might the are We things that use just towards the of same We year. be believe the up end

think for CPUs I you maybe a IP, percentage adoption, many CXL of to a Server can many feel there the you how the you how CXL. be give using are different engagements and Okay. if what licensees will talking know you're do Maybe us for topic. moved to,

So we types it’s a different The question. have engagements of great with CXL.

buy IP of chip and First CXL the down sale is of PLDA. but the this type acquisition sale, of great We the engagement integrate we really controls is through into are that [inaudible] and road. going controls to be there, our momentum the have the so have capable people

would These to say own CXL. positions are we of allows I develop and revenues first from also wave us have the that’s So that our CXL chips.

in we are And in We engaged with X.X you going to profit about a also the as service for we which as we CXL we the talking hit ecosystem that later. finally, players the are are targeting development bit know hit providers And to the specific CXL in is XXXX. Cloud with the swing market chips and full our same shift. market have Controller, the will in those,

on to a a are one CX we market, memory the of main XXXX in have technology and that different market we hit So being X.X. the expander that wave based will the introducing products the

And question line Mark from Lipacis your with of comes next the Jefferies.

open. is line Your

companies expect know have – you going question. Hi! for you on IP going the increasing companies IP kind M&A selling the forward. M&A the know I product strategy versus portfolio like you sale is IP make taking sake Thank a product your also you my a of To product, versus your that companies. would for question of be extent delivering kind you The semiconductor for forward a of your what pure of

on your Thank you. great. share could you If thoughts be idea, that that would

Mark. thanks Yeah,

scale know for carve first We obviously with we that be semiconductor semiconductor is today. business to in markets M&A or to would growth project. types objective You can companies companies looking right of profitable the and serving the to extent the out find generate the the we are

product same with where that PLDA the use we companies are portfolio and our going of type end of in and own again, increasing used The IP both AnalogX that things and revenue forward. year, other the we did complement we IP that growth our is the at of products our in last type with only looking we secured was ecosystem

now part our it’s or buying here, find As own two, companies so parts, takes It you have right semiconductor to semiconductor the we to directly partner. is But that M&A. know IT growth semiconductor parts. idea to with the we by development company accelerate of canvas either buying generate should predict difficult

you. That’s you. very Got helpful. Thank

Thank you, Mark.

follow-up And from Hosseini a with SIG. have Mehdi we

open. is line Your

you. thank Yes,

Keith. a give Just Can quick follow-up an ’XX increasing should we us idea OpEx for you how about in ‘XX? versus think

we of Hi current OpEx look guidance perspective an Mehdi! at for that take quarter. QX I’ll I put a think from had just the the forth some

tax, And of to expand seasonal there's additional at run some natural incremental we have said. perspective will the from to costs. we like the continuing that and have of year. so slightly our that kind product throughout to We're So least just we’re some about you also [inaudible] that have of continue we be the looking hiring and talk it, that will QX have add course to portfolio, we payroll That then rate the know hire. will costs, in

Got Okay. And for have if just may, I I follow-up a it! Luc.

your Just looking site how mix revenue better an want should mix, budget. continued the revenue has mix to your manufacturing think at R&D versus customer diversity I how the I acquisition, IP from silicon at about between also your car and is which recent benefited customer actual of the body understand

better kind to a just understand question two-part of those you and how to So trying entail acquisitions? are able

a especially the chain that’s have. Thanks vast are thing The the supply silicon and IP in the our markets. products. environment across our in security, largest have data good we that, customers for look into have active to know current the and center broader go than and nice to it’s is silicon interfaces, we Mehdi. wins about is IP business currently the business our in edge the less business, silicon majority the That’s design we much controllers as remarks, other prepared at our range to of thing said we immune silicon and If of much what IP you

number a wins, So IoT. of supply we and have design fairly large chain

reunion in automotive. by security IP our technology lot and We and have governments featured in a

can it’s we IP higher silicon and our silicon to So digit, business The growth as double that a a we broader piece for both, this That’s the than of just good our which there’s the business, our challenging that forward. products a customers know our our we use our many as provide. growth. so have not product team are market, much customer reach to because as semiconductor fast IP growing range IP, just growth within more silicon is fast, market not revenue But it’s and market. you margin growing going technology contribution

Suisse. Credit up We from Pitzer [Operator follow have a Instructions] question with John

open. is line Your

to content. content the you just curious product have versus ‘XX ASPs bit street year you models more do year there were view up your growth you about of I'm in as as number Memory shows And of bit how growth contact that digit of you because overall little Yeah, to Server about accelerating this think you DDRX. the know guess, year. if kind a accelerating quick, little to revenue kind of curious are mid-single Buffer in is I'm if last extent a and levered this much can underlying the as a market, DRAM growth? of calendar it that saw real thanks. business kind bunch the questions you to I as and talk around moved Well

Yeah John, thanks question. for the

it precisely know that was you as growth, of we it DRAM we company dynamic what module, to at this designs XXx% are is a difficult for for the the generate how your better going on up we correlated DDRX is DDRX new with also pricing for more because our but market and answers DRAM. and include generation-to-generation. and and demand know speed market, products, we on with as from that to So way the you which DRAM being us correlate volatility know this a can recycling The it’s generation drives the is demand question. – demand of you that, look data people directly for footprint hope their to I It’s growth. or correlated accelerate generations we at not from within the do the footprint our that’s is

know is or be it’s there days, way but know been helpful. And the any what year that’s supply could figure constraints. No, I you what of could to revenue beyond some have extent, XX out to difficult this without then

that's deficiency in of you digit supply/demand about about to or talking something You’re line? the X% more talking are X% double

that, that regard an a around and in It’s from number demand put know I’ll design In challenged we it. lot of and to the that big think exciting, another very a that strong phrase price dynamics bit things. how number. pricing more is and of and very something is bit it's but what it, and to just You There's little DDRX it’s changes is of getting challenging I but kind little quantify. the are a all and trying John, seems DDRX that but a really is with wins great takeaway some dynamics obviously it’s think meaningful larger this number, I not,

you. Thank Keith. helpful That’s

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

time. today for day! continued again and everyone, soon. and Thank for to us Have you, speaking you. great your joining to you forward We look a Thank interest

today's now concludes This conference. you. Thank

may disconnect. You now