RMBS CC highlights
15 per increase in profitability q-q
increase of net income 9 per q-q
expenses lowest in 6 q's
rev 23.4 mil down 5 per q-q, 25 per y-y
royalties 21.8 mil flat q-q, down 8 per y-y
seeing good royalty stream from memory and controllers
memory - rev growth 23 per q-q, unit growth 27 per q-q
controllers - rev growth 3 per q-q, unit growth 7 per q-q
contract rev down 1.3 mil, flat next q, don't expect much change till we get Yellowstone clients signed
SDRAM+DDR royalties down 9 per q-q on memory + controllers
1.6 mil in legal expenses in q, down 2.4 mil
$5 mil in shares re-purchaed during q
cash up to 162 mil from 159 mil q-q
no inventory risks
not offseting vechiles
conservative accounting for royalty rev
bought back 635,000 shares at average $7.35, not 100 mil outstanding, 103 fully diluted
Guidance:
Rev flat q-q
Op Ex up 1 mil due to investment in development of RSAS serial technolgy and Yellowstone.
Legal cost below 2 mil next q
other income will be down due to sub-lease on old facilty, should be $200,000
tax rate 35 percent
EPS 6 cents
RSAS business:
Apps in WAN backplanes, Fiber channel infibandd apps, 10 gigE
saves resources + power
5 to 10 lincesees so far
INTC, Banderacom (sp?) and TXCC are licensees
hope to see first rev in summer
Banderacom demonstrated recently at INTC developers conf.
RSAS recently passed technical testing at another OEM
4 working chipset to date
expect 10 gigE to be small but fast growing segment, expect good operating margins
Yellowstone:
Have made 3 passes at silicon, seeing good progress, current system support 3.2 gig, next step 6 gig,expect first licensee in summer
RDRAM:
14 percent of all DRAM is RDRAM
unit vol up 27 per q-q
RDRAM still making design wins
seeing good PS/2 sales
INTC selected RDRAM for network controller, VTSS select RDRAM memory,
New INTC 850E chipset will build on RDRAM, extension of 850.
Silicon Systems expand RDRAM license to include 850
CPQ alpha that will ship later this year will contain RDRAM
Legal Stuff:
In US: briefing of appeal heard. June for arguments, ruling 2003.
Suits on MU and Hynix put off till appeal heard
US trade commission still looking at JDEC standards participation in 1991-1195
Shareholders lawsuits now all combined in California, except one in Delware hope to dismiss
New lawsuite from Holiday Matinee claiming they overpaid for RAM due to RMBS royalty, has no merit due to declining RAM prices, not all manufactures paying royalty
3 suites in Germany - iNFY, Hynix, MU. Patent validity + Infringement determination in Sept, expect an injunction in Q3/Q4 if successful, will have to post a bond if they appeal |
