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I wasn't all that interested until the thread bulls made fun
of me, but I browsed their last 10-K sec.gov
and found several tidbits, like, "The DRAM market is intensely competitive and generally is characterized by declining average selling prices over the life of a generation of chips. Such price decreases, and the corresponding decreases in per unit royalties received by the Company, can be sudden and dramatic. Compounding the effect of price decreases is the fact that, under certain of the Company's license agreements, royalty rates decrease as a function of time or volume."
I also like their warrant issues: 1 million shares to Intel, plus an
allocation of 400,000 to RDRAM makers, as incentives.
And then there's the license terms with LG Semi sec.gov
"Rambus agrees to consider reductions in LGS's royalty rate(s) for Rambus DRAMs, to the extent both companies, in their discretion, determine that such reductions would be mutually beneficial."
And, since we're on licensing, more from the 10-K: an amendment to the Intel license adds:
"Additional Intel Obligations(a) Intel will use its continuing best efforts in marketing, public relations, and engineering to make the Rambus-D DRAM the primary DRAM for PC main memory applications through December 31, 2002; and (b) Intel will communicate to the top (10) DRAM manufacturers, Intel's intention to support the Rambus-D Interface Technology in its integrated circuits for low end workstation, performance desktop, and basic PC platforms." Wow -- best efforts to make it the primary PC DRAM? No wonder Intel's being very quiet about PC133.
Note that these licenses appear to be considered confidential; I can only imagine
what else might lurk therein. -mb |
