Rambus Inc. (RMBS)
Rambus names Ronald Black as President and Chief Executive Officer Conference Call
June 25, 2012 4:30 pm ET
Satish Rishi – Senior Vice President and Chief Financial Officer
Harold Hughes – Director
Ronald Black – President and Chief Executive Officer
Paul Coster – JPMorgan
Hamed Khorsand – BWS Financial
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Ladies and gentlemen, thank you for your patience and for standing by. Your Rambus Special Conference Call will begin momentarily. Again, ladies and gentlemen, thank you for your patience. Your Rambus Special Conference Call will begin momentarily. Thank you for your patience and please stand by.
Good day ladies and gentlemen, and thank you for standing by. And welcome to the Rambus Special Conference Call. At this time, all participants are in a listen-only mode, later we will conduct a question and answer session and instructions will follow at that time. (Operator Instructions) As a reminder, today’s conference maybe recorded. And now it’s my pleasure to turn the call over to Satish Rishi. Please go ahead.
Thank you, operator and welcome to the Special Conference Call regarding the appointment of Dr. Ronald Black as Rambus’s President and CEO. I’m Satish Rishi, CFO and on the call today are Harold Hughes and Ron Black.
Before we get into the prepared remarks, I need to mention that a replay of this call will be available for the next week at 855-859-2056. You can use the replay by dialing the toll-free number and then entering ID number 95079698 when you hear the prompt.
In addition, we are simultaneously webcasting this call. With that, let me turn the call over to Harold to make a few comments. Harold?
Thanks, Satish and good afternoon everyone. As we stated in today’s press release, the Rambus Board has appointed Dr. Ronald Black as Rambus’s President and Chief Executive Officer and Board Member.
Ron has extensive experience across a number of different industries, which fits well with the diversification strategy we put in place several years ago. As the Board entered the process of finding my successor, we were looking for someone with the passion and interest in a variety of businesses that can take what we’ve established and move to the next level.
I’m proud of what we’ve accomplished during the past seven years, where we are not without our challenges, I believe we are on the right trajectory and Ron is the right person to lead us forward to the next phase. So, with that, I would like to introduce formally, Dr. Ron Black. Ron?
Thank you, for such a warm welcome Harold. I’m indeed excited to be part of Rambus, the company that I have watched from afar throughout my career and one that I’ve always been deeply impressed with. Rambus’s technical prowess is well known in the industry as its engineers have contributed significantly to the successful evolution of the personal computer making it the ubiquitous platform we know today.
Let me reassure you that we will continue to build on the company’s outstanding technical capabilities fostering the culture of innovation that Harold and the Board has supported over the years.
While we believe that the company is sound, we are however also mindful that our stock price is not reflecting the inherent value we believe the company represents. Simply put, we need to profitably grow the company and demonstrate that our brilliant engineers can create technology that customers want to buy.
Certainly, part of the issue with our stock price is related to the potentially large swings in cash that can result from litigation. Unfortunately, such litigation is from time to time, required in the high tech space in order to protect one’s IP and seek compensation for its unlicensed use.
Let me be clear however that we will increasingly focus on the more collaborative technology licensing approach that allows us to engage customers for the long term. Indeed, I must prefer the carrot of collaborative development of technology for or with customers than the stick of litigation for patent infringement. The carrot of our outstanding technical expertise is the approach now used increasingly by the semiconductor business group, SPG, which has developed a wealth of new technologies that are just rolling out and also the acquired businesses including our lighting and cryptography divisions, which form the bulk of the New Business Group or NBG.
For instance, the lighting division has signed industry-leading partners in a relatively short period of time indicating that customers value are novel LED based lighting technologies built on deep expertise in electronic system engineering, thermal management and optoelectronics.
Similarly, on the security side, CRI has been instrumental in helping customers avoid security breaches that may allow their high value content to be accessed without permission or the private information of end-consumers to be stolen or violated. I am very impressed with CRI’s list of customers and believe that our technology will be increasingly important for the industry in the future.
In conclusion, there are many interesting and exciting things going on here at Rambus. My initial priority is to meet with these many customers and partners, as possible in order to get a full assessment of where we are and what our most attractive opportunities lie. This is certainly a company that is rich in invention and expertise. I very much look forward to delivering positive results for customers, shareholders and employees.
Thank you. Let’s move on to questions. Operator, will you please open the lines for Q&A?