Rambus (RMBS) - Eagle or Penguin Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 98.00

+1.8%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: cardcounter who wrote (46045)	6/26/2000 9:38:00 AM
From: Dave B	Read Replies (1) of 93625

cardcounter, You were doing fine until this statement... A 2% royalty of the entire market gets you $600 MM in revenue, and with a generous net margin of 30% you're at $180MM net (historically net income is has been about 20% of sales) .. assume shares outstanding stays the same (it won't) and your at $1.67 eps Rambus has no cost of goods to pay for and no significant marketing expenses (since it will be the partners who pay for advertising, etc.). The net margin will be quite a bit greater than 30%. And with only about 200 employees (300 next year?) there's not much in employee expenses, either. You've missed the same point that many have missed about this company. I'd be surprised if they could find a way to spend $100M in 2001 based on the numbers you posted. And that would almost triple your EPS estimates. Dave

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next