Financial Data and Key Metrics Changes - Rambus achieved record revenue and earnings for fiscal year 2025, with product revenue reaching $348 million, a 41% increase year-over-year [12][8] - Cash from operations for 2025 was a record $360 million, up 56% from 2024 [12] - Fourth quarter revenue was $190.2 million, exceeding expectations, with product revenue of $96.8 million, representing 32% year-over-year growth [13][12] Business Line Data and Key Metrics Changes - The product revenue for the full year was $347.8 million, marking a new annual record [13] - The company reported strong performance in DDR5 products, contributing significantly to revenue growth [8][12] - Silicon IP revenue is strategically focused on AI hardware, with increasing design wins for high-speed memory and interconnect solutions [9][12] Market Data and Key Metrics Changes - The demand for AI and traditional server markets remained strong, driving the need for higher compute and memory performance [5][10] - Rambus increased its market share in DDR5 RCDs, ending 2025 with a mid-40% share [31][66] - The company anticipates that the ongoing expansion of AI will reshape memory and interconnect requirements, positioning Rambus to grow faster than the market in 2026 [10][12] Company Strategy and Development Direction - Rambus aims to capitalize on trends in AI and memory architecture, focusing on high-performance memory and interconnect technologies [5][10] - The company is committed to investing strategically in its product roadmap to expand market opportunities and drive long-term growth [4][12] - Rambus is well-positioned to address the accelerating demand for AI solutions through its diversified portfolio [18][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to strong growth in Q2 2026 after resolving a supply chain issue that impacted Q1 revenue [11][25] - The company expects to grow faster than the market in 2026, despite challenges in the supply chain [11][25] - Management highlighted the importance of quality management and collaboration with suppliers and customers in addressing operational challenges [58][60] Other Important Information - The company reported total operating costs of $103.2 million for Q4, with operating expenses flat compared to Q3 [15] - Free cash flow for the full year was $320.9 million, representing a 45% free cash flow margin [16] - The company expects Q1 2026 revenue to be between $172 million and $178 million, impacted by the supply chain issue [17] Q&A Session Summary Question: Will there be catch-up in Q2 for the revenue loss in Q1 due to the supply chain issue? - Management confirmed that the supply chain issue has been resolved and expects strong growth in Q2, with the lower Q1 revenue not changing the business trajectory [24][25] Question: What was the estimated revenue impact from the supply chain issue? - The estimated impact was around low double-digit million dollars in a seasonally soft quarter [26] Question: How did the RCD market share finish for 2025? - Rambus ended the year with a mid-40% share in DDR5 RCDs, with expectations to continue growing faster than the market in 2026 [31][66] Question: What is the expected contribution of PMIC to total product revenue? - PMIC is expected to grow from upper single digits in Q4 2025 to about double-digit contribution in total product revenue in 2026 [42] Question: How does the supply chain issue affect the RCD and companion chips? - The supply chain issue primarily affected the RCD, while companion chips were not impacted [60] Question: What is the outlook for the DIMMs per CPU expected in 2027? - The number of DIMMs per CPU is expected to grow, but quantifying the exact number is complex due to various market dynamics [49] Question: What is the expected gross margin for 2026? - The expectation is to maintain gross margins in the low 60% range, consistent with previous years [96]