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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Gary105 who wrote (26079)	7/31/1999 9:40:00 AM
From: unclewest	Read Replies (1) \| Respond to of 93625

unclewest, could you clarify your estimate re. dram sales - are pc dram sales only 1/3 of total dram sales? (its easy for cfo to say multiply pc sales by 3, but i would like to see verification that pc sales are 1/3 of total dram sales) also what % royalty does rambus get on dram sales? gary, last ? first. we had information and a thorough discussion of royalties here on the thread earlier this year if you would like to surf back. the conclusion many of us came to was dram royalties were in the 1-3% range with an average of 1.7%. the royalties on other is around 5%. first ? last. i do not have that figure perhaps some else can provide it. i do not think that figure will really answer your questions. i will explain why. rambus' business model finances look like this: royalties (1-3%)on sale of rambus rdrams. contract revenues, including license fees and engineering service fees, spread over 5 years. logic chips get much higher royalties...up to 5%. i understood that rambus collects royalties on everything but testers. that includes rdram, connectors, rimm, clock chips etc. rambus will collect royalties for pc's servers other the royalties for "other" are considerably higher. so even though the dollar sales will be considerably lower the royalties will be considerably higher. so we are looking at the following revenue sources: licensing fees engineering fees pc's servers other a few more thoughts. rambus is patent protected until 2010, with 70 more patents presently pending. each new improvement patent issued extends the protection date. rambus has over 70 design wins(that # may be substantially higher now). many of these have not been announced yet. the growth in design activity has been difficult for rambus to keep up with. rambus ceo told us in feb meeting that rambus has design wins or expects wins in the following areas: pc main memory, graphics chips, other graphics, net computer, communications, ip switches, fiber channel, atm, several digital tv's, set top boxes, printers, copiers, game sets. most of these have been verified one way or another by the thread already. unclewest all of this of course is jmho. this writer may have a position in the security, rmbs.