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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 92.00+1.6%11:22 AM EST

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To: Estephen who wrote (47518)7/19/2000 11:13:19 AM
From: Estephen  Read Replies (4) of 93625
 
This is really comical. The three stooges, Via, sherry graber and drew peck bake a cake !!!

Via, Acer Oppose Intel's Rambus Plans for Willamette (Update4)
By Alan Patterson

Taipei, July 19 (Bloomberg) -- Via Technologies Inc. and Acer Laboratories Inc., two of the world's largest computer chipset designers, said they will oppose an Intel Corp. plan to exclusively use a Rambus Inc. memory chip standard for an upcoming processor.

Taipei-based Via said it wants to use an alternative standard called double-data rate, or DDR, for a chipset supporting Intel's Willamette processor to be introduced later this year. Acer Labs, a unit of Taiwan's largest computer manufacturer, will also unveil a DDR chipset for the Willamette this year, spokesman Gina Chao said.

The companies' opposition is further evidence computer makers and semiconductor companies are unconvinced sufficient demand exists for Rambus chips, which cost more than alternatives. It may also set the stage for further lawsuits from Intel, the world's largest chipmaker, and Rambus against competitors such as Via.

``Via strongly believes DDR will be the next-generation mainstream memory standard for the PC industry, and we are committed to implementing it on a full range of processor platforms,'' Via spokesman Richard Brown said.

Acer Labs and Via design and sell chipsets, semiconductors that manage the flow of information between a processor and the rest of a computer.

Via on July 5 settled legal disputes with Intel involving chipsets that support Pentium processors. The company has increased its market share at Intel's expense, in part because Via has supported the DDR memory standard while Intel has backed Rambus. Intel has endorsed Rambus as the memory standard enabling future computers to process more data at higher speeds.

Intel has said the Willamette processor will only use so- called Direct Rambus memory chips. Yet some analysts are concerned shortages of these chips will delay Intel's plans to launch the Willamette.

``We don't believe there will be enough Rambus parts available,'' Semicon Research Corp analyst Sherry Garber is quoted as saying on the Web site of trade publication Electronic Engineering Times.

Industry Support

At a recent DDR summit in San Jose, California, ``all major chipset, board and graphics chips vendors united behind the new technology. Except Intel and Rambus, of course,'' Acer Labs reported on its company Web site.

Companies at the San Jose conference included Via and top- ranked memory chipmakers such as Samsung Electronics, Hyundai Electronics Industries Co., Micron Technology Inc. and Infineon Technologies AG, Acer said.

``Everybody emphasized their support for DDR-SDRAM, which will bring a major increase in system performance for PC and workstation/server platforms,'' the Acer Web site reported.

Intel has an equity stake in Rambus Inc. and supports its memory standard in the belief it will enable future computers to process information at higher speeds. However, computer and chip makers believe implementing Rambus will result in higher prices at a time when more consumers are buying PCs that cost less than $1,000.

Rambus Royalties

Rambus yesterday said fiscal third-quarter profit more than doubled on higher royalties.

Net income rose to $4.6 million, or 4 cents a share, in the quarter ended June 30 from $2 million, or a split-adjusted 2 cents, a year earlier. Revenue rose 67 percent to $17.8 million from $10.6 million

Toshiba Corp. and Hitachi Ltd. agreed last month to pay Rambus royalties for a broad range of memory-chip designs.

Rambus shares fell 6 5/8, or 6 percent, to 101 7/8 before the company released its earnings after the close of trading in New York. The stock dropped 5 7/8 to 96 after the earnings report. The shares are up about sixfold this year.

``The current numbers are not that important. Future revenues are,'' Drew Peck, an SG Cowen analyst, said before the release of earnings. He rates Rambus a ``neutral.''

Rambus does not make memory chips itself but licenses its designs to chipmakers.

Via rose NT$3 to NT$523. Acer Labs rose NT$5.5, or 6.3 percent, to NT$95.5.
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