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

To: Jdaasoc who wrote (39717)	4/12/2000 6:01:00 PM
From: Don Green	Respond to of 93625

Rambus 2Q Oper Net 15c/Diluted Shr Vs 8c Dow Jones Newswires (Corrected 4:34 PM) Rambus Inc. - Mountain View, Calif. 2nd Quar March 31: 2000 1999 Revenues a $15,694,000 $9,859,000 Net income b (166,841,000) 2,009,000 Avg shrs (basic) 23,889,000 23,209,000 Avg shrs (diluted) 23,889,000 24,980,000 Shr earns (basic) Net income b (6.98) .09 Shr earns (diluted) Net income b (6.98) .08 Figures in parentheses are losses. a. Includes about $4.4 million of deferred revenue recognized on the DRAM portion of a contract which the company terminated due to the nonperformance of a licensee. b. Includes a charge of $230,000 associated with the purchase late last year of a company developing the SerDes cell for networking application. Also includes a charge of $171 million associated with the vesting of certain employee options and common stock equivalents. Excluding the items, the company earned $4 million, or 15 cents a diluted share. Rambus Inc. (RMBS) incurred a charge of $171 million in the latest second quarter related to the vesting of certain employee options and common stock equivalents. One portion of vesting the options and common stock equivalents was tied to an increase in the price of Rambus common stock to more than $200 a share for 30 consecutive days. This target was met by the end of March. Rambus expects the exercise of the options and common stock equivalents by employees to result in a positive cash flow to the company. The additional options and common stock equivalents will increase diluted weighted average shares outstanding by about 2%. A second portion of Rambus's performance-based employee options and common stock equivalents will vest if shipments of Rambus-based chipsets are greater than 20% of Intel's total chipset shipments for two consecutive quarters. When the options and common stock equivalents vest, Rambus will take another non-cash charge. Based on the current price of Rambus stock, Rambus expects the charge to be $400 million or more. Rambus expects this charge to be non-cash, except for a relatively small payment for payroll taxes which will be offset by the cash received by the company from the exercise of the warrants, options and common stock equivalents.