Ian,
IMO this is a sign of maturing technology.
The customers are out of the R+D phase now where they needed their hands held, and into production engineering for mass production of systems. Most of this work will be done by the customers own staff.
So the Rambus engineers get to stay in San Jose and design Rambus II, or even to take a well earned vacation, hence less overtime, less travel, etc.
Possibly, though they're previous statements were that these expenses would be going up. I'd just like to hear they're explanation. Of the items you mentioned that might reduce costs, the only one that is real is the travel -- employees still get paid during vacations, and no one gets overtime in the Valley (your stock options pay your overtime). Travel couldn't account for the entire amount. Again, I suspect they just moved it into Cost of Contract Revenues. I believe they said they were planning to hire about 10 additional people above the original plan, which was going to drive the costs up and hence earnings down to $.05. Maybe, based on your comments, they found that they just didn't need to hire the extra people.
Dave |
