Rambus Inc. (NASDAQ:RMBS) Q4 2019 Earnings Conference Call - Final Transcript
Jan 27, 2020 • 05:00 pm ET
We also continue to strengthen our balance sheet, generating $35.4 million in cash from operations in the fourth quarter. This brought our total cash from operations for the year to $128.5 million, which is up $41.4 million or 48% over 2018.
In 2019, we redefined our perimeter with significant M&A activity throughout the year, focusing the company on silicon IP and chip solutions for the semiconductor market. We ended the year strong, completing both the sale of our Payments and Ticketing business to Visa, as well as the purchase of the secure silicon IP and protocols businesses from Verimatrix, formerly Inside Secure.
Much like the purchase of digital controller company, Northwest Logic, earlier in the year, the Inside Secure teams and offerings augment our portfolio and expand our market position in data center, AI, networking and automotive. As we have mentioned previously, neither acquisition materially impacted our 2019 results, but we expect both to have a positive impact on the business and be accretive to revenue and earnings in 2020.
In addition to the successful closing and integration of our acquisitions, we continue to execute and demonstrate success across our product lines throughout the year. 2019 was the second consecutive year of record revenue from products, with combined results from our chip and silicon IP businesses, delivering over 64% growth year-over-year from 2018. Memory interface chips was the fastest growing segment of the business, with revenue almost doubling year-over-year. Driven by increased OEM and data center qualifications, we saw steady gains in our DDR4 memory interface chip market share and delivered the third consecutive quarter of record revenue.
Silicon IP also delivered record revenue in Q4 and drove sustained growth throughout the year, up 29% from 2018. We had numerous design wins at Tier 1 SoC customers across our target markets for both interface and security IP solutions. Most recently, we announced the win at Enflame for both our HBM2 PHY and controller as part of their next-generation AI training chip. In addition, the team continues to build out our portfolio of solutions, addressing the fast growing and demanding applications in AI and 5G and data center with the launch of our comprehensive PCIe Gen 5 interface solution in Q4.
In closing, Q4 was a fantastic quarter. We delivered record revenue from both chip and silicon IP and robust cash from operations. For 2019, we executed on our strategic objectives and successfully realigned the company around our core strength in semiconductor, while strengthening the product portfolio. Now looking forward, we will continue to capitalize on high-growth market trends favorable to Rambus, with market share gains for chips, alongside the memory cycle upswing and growth in the strong semi IP market capitalized by AI and 5G, we will be very well positioned for continued success in 2020 and beyond.
With that, I'll turn the call to Rahul to discuss the quarterly financial results. Rahul?
Thanks, Luc. I'd like to begin with our financial results for the fourth quarter. Let me start