Rambus, Inc. (RMBS) Q1 2012 Earnings Call April 19, 2012 5:00 p.m. ET Executives Satish Rishi - Senior Vice President and Chief Financial Officer Thomas Lavelle - Senior Vice President and General Counsel Sharon Holt - Senior Vice President and General Manager, Semiconductor Business Group Martin Scott - Senior Vice President and General Manager, New Business Group Analysts Daniel Bretthauer - MDC Financial Research Hamed Khorsand - BWS Financial Philip Zera - Algorithm Capital Presentation Operator
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In an effort to provide greater clarity in our financials, we are using both GAAP and non-GAAP pro forma formats in our press release. I also need to advise you that the discussion today will contain forward-looking statements regarding our financial prospects, pending and current litigation, and demand for our technologies, among other things. These statements are subject to risks and uncertainties that are discussed during this call, which 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 are under no obligation to update these statements.Further, as mentioned, we will discuss non-GAAP financial results 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. Now, I will go ahead with Harold’s prepared remarks. Overall, we had a strong first quarter with $62.9 million in revenue, which was towards the high end of our guidance. I will provide more detail on this in a few minutes. During the course of the quarter we signed two significant patent licenses agreements, NVIDIA and MediaTek. These license agreements are particularly important as they settle the outstanding ITC claims, as well as the individual district court cases with these parties. We have signed forward-looking license agreements with both companies which is obviously important for the future. While we had a setback in the ITC case, we are pleased to have resolved the differences with NVIDIA and MediaTek. Two other parties remain in the ongoing ITC case, in which we have filed a petition for review by the commission. A quick comment on the pricing fixing case in San Francisco. We have filed our notice of appeal. While we cannot predict how or when the appellate court will decide our appeal, we believe mistakes made during the trial require a reversal of the judgment. Tom will address questions later in the call.
For now, we would share a few thoughts on where we are as a company. We are well positioned to build and develop the series of solutions and innovations that will enrich the experience of end-users around the world. We are in an ever-changing environment. Digitally connected devices, consumer demand and technological breakthroughs have all changed the world in which we do business. Historically, advances in semiconductor technology were the drivers for increases in functionality of consumer electronic devices.Today, consumer demand has become a force that is pushing us all to innovate faster and to drive greater functionality and requirements. This plays well into our strengths as inventors and as a company. We saw this trend emerge years ago and we adopted a strategy to diversify into businesses both within and beyond our traditional markets to meet the growing needs of consumers worldwide. And we continue to execute on this strategy. Our focus on innovation lies at the heart of who we are. We will continue developing into a company that can take advantage of technology disruptions in large markets. We believe in the strategy and it will continue to govern our actions. All of our businesses are driving rapid innovation and change, whether it is high performance, low power memory systems, highly efficient cost effective lighting and display solutions or across the broad spectrum of electronics that need to be secure. Innovations remain at the core of our company. Regarding our CEO search, Harold is working with the board to identify new CEO to lead our business forward to reach our full potential. The search for a new CEO is well underway with the board looking at both internal and external candidates. Read the rest of this transcript for free on seekingalpha.com