Rambus, Inc. , (
January 27, 2011 5:00 p.m. ET
Satish Rishi, SVP and CFO
Harold Hughes, President and CEO
Tom Lavelle, SVP and General Counsel
Sharon Holt, SVP, Licensing & Marketing
Jeff Schreiner - CapStone Investments
Michael Cohen - MDC Financial
Mike Crawford – B. Riley & Co.
Vahid Khorsand – BWS Financial
Previous Statements by RMBS
» Rambus CEO Discusses Q3 2010 Results - Earnings Call Transcript
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» Rambus, Inc. Q4 2009 Earnings Call Transcript
Good day ladies and gentlemen and welcome to your Q4 2010 Rambus Incorporated conference call. At this time all participants will be in a listen-only mode and later we will open up the question-and-answer session, which instructions will be given at that time. (Operator Instructions) And as a reminder, today's conference is being recorded. And now, I would like to introduce your host for today, Satish Rishi.
Thank you operator and welcome to the Rambus fourth quarter conference call. I'm Satish Rishi, chief financial officer and on the call today are Harold Hughes, our president and CEO; Tom Lavelle, senior VP and general counsel; and Sharon Holt, senior VP and general manager of the semiconductor business group.
The press release for the results that will be discussed here today has been filed with the SEC on Form 8-K. A replay of this conference call will be available for the next week at 800-642-1687. You can hear the replay by dialing the toll-free number and then entering ID number 36198129 when you hear the prompt. In addition, we are simultaneously webcasting this call and a replay can be accessed on our website beginning today at 5:00 P.M. Pacific Time.
I need to advise you that the discussion today will contain forward-looking statements regarding our financial prospects, pending litigation, and demand for our technologies, among other things. These statements are subject to risks and uncertainties, which are more fully described in the documents we filed with the SEC, including our 8-Ks, 10-Qs and 10-Ks.
These forward-looking statements could differ materially from our actual results and we are under no obligation to update these statements. Further, we will discuss non-GAAP financial results on the call today and have posted on our website reconciliations of these non-GAAP financials to the most directly comparable GAAP measures. You can find a copy of our earnings release and the reconciliation on our website at www.rambus.com, on the Investor Relations page under financial releases.
Now, I'll turn the call over to Harold.
Thanks, Satish, and good afternoon, everyone. 2010 was an absolute banner year for Rambus. We achieved the highest annual revenue in our 20-year history, and 2010 was a record year in terms of our overall financial performance. Helping fuel these results were the many key license agreements signed during the year.
We started the year strong with the Samsung agreement. That $700 million five-year deal was a pivotal event for the company. Following Samsung, we signed and renewed license agreement with AMD, GE Lighting, NVIDIA, Elpida, and Renesas. And just a short time ago, we announced we renewed the patent license agreement with Panasonic. Panasonic, Renesas, and Elpida have been long term partners of Rambus, and we are extremely pleased to continue these relationships with these new agreements. The Elpida deal, signed in December, has projected value of $180 million over five years. The terms of Elpida's agreement reflect the long partnership with Rambus and their continued commitment to our mutual success. Based on our projections, the royalty from these agreements signed in 2010 will total roughly $1.3 billion over the life of the agreements. This is an outstanding and historical accomplishment and I'm extremely proud of the work the Rambus team, as the organization made progress on many front.
The accomplishments of 2010 serve as a testament to our Value Creation Cycle of innovate, drive adoption, and monetize. We have a number of engagements at various stages in this cycle, but it is rewarding to see such great progress on the monetization activities seen over the past year. An important area of innovative focus for Rambus is gaming and graphics. Next week we will launch a set of innovations that support this key market area. Full details will be announced soon, but as a preview, we will be demonstrating a new test chip at DesignCon that runs at an unprecedented data rate with unmatched power efficiency. I'll discuss this new technology at the opening keynote of DesignCon next Monday, January 31.
Turning the mobile market, we are continuing to drive our adoption efforts of technologies that meet customer's needs for high bandwidth, low-power memory solutions. Both our leadership mobile XDR architecture as well as our patented innovations in LPDDR and LPDDR2 offer solutions for the demanding requirements for the next generation of smart phones and tablets. We're also making continued progress on our diversification efforts. Earlier this week, we announced we acquired the assets of Imagine Design, a small and innovative company developing solid state lighting solutions. This acquisition demonstrates our continued investment in our lighting and display business. It also expands the market our solutions can address to specialty lighting segments, like architectural lighting, entertainment lighting, and street lighting. Imagine Design's key inventor, Brian Richardson, has joined Rambus to continue to develop these innovations and solutions.
Since creating our lighting and display business just over a year ago, we have built a state-of-the-art design and prototyping facility in Brecksville, Ohio, assembled a team of world-class engineers and scientists, bolstered our patent and technology portfolio with some key acquisitions, and signed a broad licensing agreement with the renowned market leader GE Lighting. Innovation is a critical part of our Value Creation process, the foundation of our success.