Revenue Dependence and Predictability - The company's revenue is significantly dependent on licensing fees from patented technologies, which are subject to customer adoption and usage [55]. - The licensing cycle is lengthy and costly, with marketing and sales efforts potentially leading to delays in revenue generation [56]. - Future revenue predictions are challenging due to the unpredictability of license negotiations and customer sales volumes [58]. - A substantial portion of revenue is derived from a limited number of customers, increasing the risk of revenue decline if any major customer is lost [51]. - The company's revenue concentration is high, with the top five customers accounting for approximately 46% of total revenue in 2020 [61]. - Revenue from Micron and SK hynix each represented 10% or more of total revenue in 2020 [61]. - The company expects to continue experiencing significant revenue concentration in the foreseeable future [61]. - Licensing fees are subject to variations based on customer agreements and shipment volumes, affecting revenue predictability [63]. Risks and Challenges - The company faces risks related to international operations, which could impact revenue stability [51]. - The ongoing COVID-19 pandemic poses risks that could disrupt research, development, and sales operations [51]. - The company may face challenges in qualifying products with customers, which could delay sales and impede growth [71]. - The company faces risks related to customer pricing policies, which can adversely affect sales and operating results [64]. - Weak global economic conditions may adversely affect demand for the products and services of the company's customers, impacting royalty revenue [88]. - The company may incur impairment charges related to acquisitions or strategic investments, negatively impacting financial results and market value [81]. - Adverse litigation results could significantly impact the company's business and financial condition, including potential monetary damages and operational disruptions [115]. - The company may face challenges in protecting its intellectual property rights, which could lead to revenue declines and increased litigation costs [116]. - Patent expirations and the inability to continuously innovate could harm the company's financial condition and operating results [123]. Financial Management and Investments - The company has adopted the new revenue recognition standard (ASC 606), which may cause revenue to vary significantly from quarter to quarter [59]. - The company anticipates increased research and development expenses, which could negatively impact operating results [73]. - Financial leverage, including $172.5 million in outstanding 2023 Notes, could limit the company's ability to respond to competitive pressures and meet future funding needs [112]. - The company has outstanding senior convertible notes totaling $172.5 million, which may affect the trading price of its common stock due to their convertible nature [131]. - As of December 31, 2020, the company had an investment portfolio of fixed income marketable securities amounting to $441.2 million, including cash equivalents [278]. - If market interest rates were to increase immediately by 1.0%, the fair value of the investment portfolio would decline by approximately $2.3 million [278]. - The company limits exposure to any single non-U.S. Government issuer to $15.0 million or 10% of the portfolio, whichever is lower [277]. - The company is exposed to financial market risks primarily from interest rate fluctuations affecting its investment portfolio [277]. Regulatory and Compliance Issues - The company is subject to various government regulations that could affect its operations and revenue generation [51]. - The company is subject to various government regulations, including those related to encryption technology, which could impact its ability to license products in certain markets [92]. - The introduction of GDPR and CCPA may require modifications to data collection and usage practices, potentially increasing operational costs [94]. - Changes in tax laws and regulations could expose the company to additional income tax liabilities, affecting its operating results and financial condition [139]. Operational Dependencies - The company relies on third-party providers for data center hosting and services, and any issues with these providers could impede growth and customer retention [103]. - The company relies on third parties for manufacturing and supply chain services, which could impair product shipment and harm competitive position if not managed effectively [104]. - Warranty and product liability claims could lead to significant costs and adversely affect operating results and customer relationships [105]. - The company may face challenges in providing high-quality technical support, which is crucial for maintaining customer relationships and sales [106]. - The reliance on third-party licensed software may delay product development and incur additional expenses if licenses are not available on acceptable terms [107]. - Use of open source software could lead to legal challenges and unintended consequences that may adversely affect business operations and financial condition [108].

| --- | --- | --- | --- | --- | |------------------------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | Rambus Fourth Quarter 2020 Financial Results | | | | | | | | | | | Safe Harbor for Forward‐Looking Statements; Other Disclosures This presentation contains forward‐looking statements under the Private Securities Litigation Reform Act of 1995 including Rambus' financial guidance for future periods, product and investment strategies, timing of exp ...

Rambus Inc. (NASDAQ:RMBS) Q4 2020 Results Earnings Conference Call February 1, 2021 5:00 PM ET Company Participants Rahul Mathur - Chief Financial Officer Luc Seraphin - Chief Executive Officer Conference Call Participants Gary Mobley - Wells Fargo Securities Sidney Ho - Deutsche Bank John Pitzer - Credit Suisse Suji Desilva - ROTH Capital Operator Welcome to the Rambus Fourth Quarter and Fiscal Year 2020 Earnings Conference Call. At this time all, participants are in a listen-only mode. At the conclusion o ...

| --- | --- | --- | --- | --- | --- | |---------|-------|-------|-------|-------|-------| | | | | | | | | Q4 2020 | | | | | | Safe Harbor for Forward-Looking Statements; Other Disclosures This presentation contains forward-looking statements under the Private Securities Litigation Reform Act of 1995 including Rambus' financial guidance for future periods, product and investment strategies, timing of expected product launches, demand for existing and newlyacquired technologies, the growth opportunities of th ...

Rambus Third Quarter 2020 Financial Results Safe Harbor for Forward‐Looking Statements; Other Disclosures This presentation contains forward‐looking statements under the Private Securities Litigation Reform Act of 1995 including Rambus' financial guidance for future periods, product and investment strategies, timing of expected product launches, demand for existing and newly‐ acquired technologies, the growth opportunities of the various markets we serve, the expected benefits of our merger, acquisition and ...