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

To: unclewest who wrote (30859)	9/27/1999 3:07:00 PM
From: Don Green	Read Replies (1) \| Respond to of 93625

Fm : WSJ Intel Confirms That Release Of Chip Set Will Be Delayed An INTERACTIVE JOURNAL News Roundup September 27, 1999 Intel Corp. confirmed it was delaying the release of its Intel 820 chip set, saying it must resolve "platform validation" issues before shipping the product. Intel said the problem may result in memory errors. The announcement was expected; several personal computer makers said that Intel was canceling an announcement for Monday that it would begin selling the chip set, two chips that control the flow of data in high-performance personal computers. Rambus Stock Sinks on Talk of Intel Delays Rumors of the delay hurt shares of Rambus Inc. on Friday, as the 820 chip set uses Rambus's memory technology. Rambus dropped $16.375 on Friday on the Nasdaq Stock Market, and fell another $11.125, or 16%, to $60 in afternoon trading Monday. Meanwhile, Intel shares were up $2.5781 to $78.25. The 820 chip set includes the technology for Rambus-based memory, which offers performance eight times faster than today's typical memory chips. People familiar with the matter expect the chip sets won't be ready for another month. It is unclear, however, whether Intel will also be forced to delay the planned October launch of its higher speed microprocessors running at 733 megahertz. The delay could fuel demand for a lower-cost rival chip set and memory technology, dubbed PC-133, supported by Taiwan's Via Technologies Ltd. Micron Electronics Inc., a Nampa, Idaho, PC maker, plans to release new computers Monday with the PC-133 technology. BancBoston Robertson Stephens analyst Dan Stevens downgraded shares of Rambus, of Mountain View, Calif., which licenses its memory technology to chip makers, from strong buy to "long term attractive" as a result of the delay. On Friday, a Dell spokesman said the Round Rock, Texas, PC maker cancelled Monday's planned rollout of new PCs and workstations after testing found undisclosed problems with the Intel chip set. "Our engineers detected the problem early and we let them [Intel] know. They went back and did similar testing. They eventually decided not to introduce the chipset," spokesman Jon Weisblatt said. He declined to describe the flaw other than to say, "They weren't going to pass the quality standards that our customers wanted." Mr. Weisblatt also said the decision to withdraw the chip launch was "very, very recently." Dell said it continues to make PCs and workstations using existing, SDRAM chips in place of the newer chips. "We still believe this is going to be a platform that will enable computer environments moving forward," Mr. Weisblatt said. Compaq Computer Corp., of Houston, confirmed it cancelled plans to announce Monday its intent to include the Intel chipset in future PC models. A spokesman said the company hadn't yet begun to manufacture PCs using the flawed chips. "Since we have not transitioned to manufacturing systems with the 820 chipset, Intel's decision to delay delivery will not affect Compaq in any material way," a spokesman said. Compaq had planned to release new PCs using the chipset Oct. 25. Their debut has been postponed.