Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Steve Lee who wrote (26129)	8/1/1999 8:33:00 AM
From: Stuart Steele	Respond to of 93625

Can someone explain where the $1 billion cash injection from Intel went if RMBS costs are <$10M per year. Thanks. I think Intel invested 10 million not 1 Billion.

To: Steve Lee who wrote (26129)	8/1/1999 9:20:00 AM
From: unclewest	Read Replies (1) \| Respond to of 93625

>>Can someone explain where the $1 billion cash injection from Intel went if RMBS costs are <$10M per year.<< i believe intel did provide rmbs some cash. in return intel got 1 million warrants exercisable @10, but only after 20% of all intel chipsets shipped for 2 consecutive quarters contain rambus. the thinking is that at that point rmbs will be so wildly successful that no one will notice. the net effect of this will be dilutive but will not cost rambus any cash. bookkeeping entry only. this is widely known and should be factored in the share price now. it is important to note that rmbs is totally debt free and presently sits on some $80+ million in cash. here on the thread we generally use 25 million shares for computations. this allows for the warrants and employee bonuses. i think we should up that a bit for these reasons...present shares out are 23.3 million, add intel's warrants, add another 400,000 warrants issued to dram companies in the past year to help defray some of their rdram start up costs. add 800,000 shares reserved for employee bonuses. that totals...25.5 million potential shares. as far as the $1 billion from intel question. they did provide micron with $500 million and another $100 million went to samsung. both this year. there were some news releases from other dram companies concerning intel offers. i do not know if they were accepted. unclewest