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

To: StormRider who wrote (46470)	7/3/2000 8:13:17 AM
From: gnuman	Read Replies (1) \| Respond to of 93625

Ahmed, LOL. Look's like somebody's campaign speech writer is moonlighting. What I think was said, "My technology is the winner, and to prove it, I'll charge the competitors a fee. Oh, and by the way, the valuation isn't based on anticipation of those new royalties. The fee's merely prove to the investors that the industry is in transition to RDRAM." And wasn't it interesting there was no mention of the huge SDRAM royalties which could accrue for the next few years? Naono explained that the reason there is a higher royalty rate for DDR SDRAM is not because Rambus merely wants to benefit from higher royalty payments, but because it wants to make it clear to stockholders that there has been no change to the company's policy of promoting Rambus DRAM as its preferred choice of next-generation DRAM technology. On the other hand, Rambus also claims that it did not want to limit consumer choice by shutting DDR SDRAM products out of the market completely, and had therefore decided to set its royalty rate at a level that is not much higher than that for Rambus DRAM. Naono also made reference to the rapid rise in the value of Rambus stock that occurred after the announcement of the Hitachi licensing agreement, saying that reason was not necessarily just that people were anticipating increased profits from DDR SDRAM royalty payments, but rather because investors and industry analysts realized that there would now be fewer risk factors standing in the way of more widespread use of Rambus DRAM technology. nikkeibp.asiabiztech.com JMHO's