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

To: unclewest who wrote (30351)	9/24/1999 6:54:00 AM
From: unclewest	Respond to of 93625

this writer provides excellent insight to the article. after posting this, he went on to point out that hp announced rambus pc's and workstations 4 days ago... unclewest When Dell posted on its web site a Sept 27 release date of its Rambus systems,which it promptly removed, its specs showed a motherboard with 3 RIMM connector slots. We now know that Dell is building its own motherboards and that they have had problems[3 connectors instead of 2] which has caused them to delay their launch to mid Oct. We hear that they have fixed their problem [the article implies that they are redoing their their motherboard with the fix] , so this is likely really old news with more detail and negative spin. HP has already announced with a ship date of mid Oct. The article does not say the launch will be delayed, but if Dell had to scrap over 100000 motherboards, it would account for their delay which was confusing since they would have been expected to release systems on Sept 27. Other OEMs would likely use Intel motherboards since they were not going to sell as many Rambus systems as Dell in Q4. Dell is probably also going to use Intel motherboards until they can ramp production of their own. Look for reaction from Edelstone who has recomended purchase on weakness and has strong buy rating. We should expect him to dig out the facts since he just a few days ago reiterated his recommendation and he stated that after checking the channels, he saw shipments commencing in Q4 and he wasn't changing his earnings estimate. Dell's problem couldn't have escaped his attention and it appears like this is or was a Dell only problem which has been cured. If the Taiwan problem causes some necessary parts to be delayed that could cause near term sales to slip so that some small impact on royalties generated in Q4 would occur. Rambus already has said this week that max impact is .01 and maybe nothing at all. So while the article sounds terrible and is probably factual it distorts the consequences of a problem which we already were aware of.