Q2 2024 Rambus Inc Earnings Call Transcript
Key Points
- Strong growth in quarterly product revenue, driven by DDR5 RCDs and high-end DDR5 server PMICs.
- Outstanding cash generation from operations of $70 million, further strengthening the balance sheet.
- Introduction of new products such as the DDR5 Client Clock driver chip and PCIe 7 IP solutions.
- Double-digit sequential and year-over-year product revenue growth anticipated in Q3.
- Positive customer reception and strong traction with qualifications in progress for multiple module types across high-performance applications.
- Modest shipments of DDR4 as the industry transitions to DDR5, impacting overall revenue from older products.
- Low-single digit price erosion in Gen 1 DDR5 RCDs, indicating some pricing pressure.
- Higher costs associated with the ramp of new products impacting short-term gross margins.
- Silicon IP revenue showing a downward trend year-over-year due to divestitures.
- Dependence on the speed of customer qualifications for new products, which can affect the growth trajectory.
Welcome to the rand the second-quarter fiscal year 2024 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded.
I would now like to turn the conference over to Desmond Lynch, Chief Financial Officer. You may begin your conference.
Thank you, operator, and welcome to the Rambus' second-quarter 2024 results conference call. I am Desmond Lynch, Chief Financial Officer at Rambus. And on the call with me today is Luc Seraphin, our CEO. The press release for the results that we will be discussing today has been filed with the SEC on Form 8-K.
A replay of this call will be available for the next week at 866-813-9403. In addition, we are simultaneously webcasting this call and along with the audio we're webcasting slides, we will reference during portions of today's call. A replay of this call can be accessed on our website beginning today at 5:00 PM Pacific Time.
Our discussions today will contain forward
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