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: exhon2004 who wrote (28954)	9/8/1999 9:23:00 AM
From: Dave B	Respond to of 93625

greg, Thanks for the posting. Samsung Electronics, a unit of Samsung Group (Q.SSN), expects to grab about 60% of the global Rambus DRAM market this year on sales of $250 million, the "spokeswoman said. With the entry of new competitors into the market, the company expects its worldwide market share to decline to 20% in 2000 on sales of $2 billion, she said. I like it. That makes RDRAM a $10 billion market next year, which gives Rambus $150M to $200M in revenues (not counting chipset revenues). They should be able to eke $20M to $25M in Net Income out of that, even with time-shifting (their normal 20% would be $30M to $40M, or $1.20 to $1.60 per share (using 25M shares). Time-shifting will reduce that somewhat, but it still sounds like the roughly $.80 per share estimate would be doable. Dave p.s. A 20% share next year would get them right to their average 20% share of the DRAM market. I guess Dan (at 50%) and I (at 33%) were both giving them too much credit.