Ibexx - I haven't seen this Rambus-Intel information posted here so I will post it.
It appears quite significant - if true.
Paul
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cbs.marketwatch.com
Rambus rockets on Intel news
CFO sees surge in sales as Intel expands use
By Binti Harvey, CBS MarketWatch
Last Update: 2:54 PM ET Jul 30, 1998
Also see Tech Report
SAN FRANCISCO (CBS.MW) -- Rambus Inc. shares jumped 18
percent Thursday afternoon after the company said it expects
Intel to use its memory technology in all Intel chipsets by 2001.
Intel, the world's largest semiconductor
manufacturer, already uses Rambus
(RMBS) systems for its high-end chips. Its
expected to convert the remainder of the
product line to Rambus systems by 2001,
Chief Financial Officer Gary Harmon said
during a presentation at the Robertson
Stephens semiconductor conference.
Harmon expects that success to be
duplicated in the larger dynamic random
access memory market. "The most
important point we've made here is that by
2001, 50 percent of the DRAM market will be converted to
Rambus' memory solutions," Harmon said.
The royalities Rambus generated from such a trend could add
billions to the company's revenue. Rambus shares gained 9 3/8
to 61 7/8 in late trading, still well below its 52-week high of 86
3/4.
Wider margin
Rambus licenses its memory and chip interface technology to a
number of chipmakers, PC manufacturers and network
equipment makers. It obtains its revenue from new licensing
contracts and royalties.
Over the past several years, the company as derived most of its
revenue from new contracts, but Harmon sees the market for
new licensees drying up because the company already has
entered agreements with many of the major players.
Harmon believes the company is now poised to reap a
substantrial portion of its revenue from royalties, thanks primarily
to a push to convert its chipsets completely to Rambus' memory
technology.
As its technology penetrates the DRAM market, replacing
older-generation technology, its costs will decline. The
accompanying expansion of royalty revenue will also increase its
operating margins.
"We expect high operating margins, increasing as we penetrate
the market," Harmon said
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