Stephens Downgrades RMBS to a Market Performer Rating from a Long-Term Attractive
SAN FRANCISCO--(BUSINESS WIRE)--Oct. 15, 1999--Robertson Stephens Managing Director and Senior Electronics Analyst Daniel T. Niles, a 1999 Wall Street Journal Analyst and a 1999 member of the Institutional Investor All-America Research Team, and Semiconductor Analyst Arnab K. Chanda, today downgraded Rambus, Inc. (NASDAQ:RMBS - news), to a Market Performer rating from a Long-Term Attractive. Rambus designs, develops, licenses and markets high-speed memory interface technology to enhance the performance of consumer electronics, computer systems and other electronic systems.
''We are downgrading Rambus to a Market Performer rating from a Long-Term Attractive,'' said Niles and Chanda. ''While the company reported fiscal-fourth quarter revenues of $12.3 million and an earnings-per-share of $0.10, we believe these numbers are overstated.''
''When revenues recognized on a shorter schedule and deferred revenues related to payment timing are backed out, the operating revenue would have been $8.5 million with an earnings-per-share of $0.05, versus our estimates of $10.9 million and $0.06, respectively,'' said Niles and Chanda.
''In addition, royalty revenues decreased from $1.8 million to $1.7 million due to fewer Nintendo units and lower prices,'' said Niles and Chanda. ''Going forward, we believe there will be no new sources of royalty revenue until the Sony Playstation II and Camino for the PC, go into production.''
''Given the increasing level of uncertainty, we are lowering our fiscal 2000 earnings-per-share estimate from $0.75 to $0.47,'' said Niles and Chanda.
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