Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 115.73

+1.3%

3:59 PM EST

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To: REH who wrote (4356)	5/29/1998 1:26:00 PM
From: MileHigh	Read Replies (1) of 93625

REH, you said below revenues for 2nd qtr were $19M, I believe you meant to say $9.7M, which makes RMBS OI margin closer to 22%, which if you added in $5M to $9.7M, you get 3rd qtr revenue of approx.$14.7M and at 22% OI Margin, you get $3.2M OI, far above $2.2M 2nd qtr OI number.... I am using your assumption of the $5M deferred revenue being allocated evenly over 5 qtrs. Also, keep in mind RMBS stated at H&Q conference recently that they expect OI margins to double to 40% or so in the future, How soon? When? I do not know, but one does not say this unless they are relatively sure margins will increase (you know the game) My correction is top line and if I got anything wrong, please comment. But I like my 3rd qtr OI estimate of $3.2M -vs- your estimate of $2.8M !! <vbg> Operating income for the second quarter was $2.2 million They also have announced that they will use $ 25M of deferred revenue over the next 5 quarters. If they split this evenly that means $ 5M current quarter. Lets assume sales and revenue stay the same as second quarter: Revenue: $ 19M Operating Income: $ 2.2M (11.6%) Add in deferred revenue of $ 5M, 11.6% would represent 0.6M Total Operating Income: $ 2.8M which would deifinatly blow away consensus estimates. In addition we might see a positive upside from more Nitendo sales...... Real numbers will count and I think rmbs will deliver MileHigh

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