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

To: Don Green who wrote (53262)	9/13/2000 4:09:20 PM
From: Don Green	Read Replies (1) \| Respond to of 93625

Rambus Rises After NEC Agrees to Memory Royalties (Update1) By John Stebbins Mountain View, California, Sept. 13 (Bloomberg) -- Rambus Inc. shares rose as much as 11 percent after it said NEC Corp., Japan's largest chipmaker, signed licensing agreements to use Rambus's computer-memory designs in a broad range of products. Rambus rose 6.69 to 83.50 in midafternoon trading, and earlier reached 85.50. Its shares had risen more than fourfold this year. NEC shares closed down 15 yen to 2,780 yen. NEC will pay royalties to use Rambus's designs and will work to develop a newer form of Rambus memory called 1066 MHz Direct RDRAM, said Tanya Orman, a NEC spokeswoman. Rambus, based in Mountain View, California, now has resolved patent disputes with most of Japan's major memory-chip makers. ``Given NEC's leadership position in the semiconductor industry, we consider this latest development to be very significant (for Rambus),'' Mark Edelstone, a Morgan Stanley Dean Witter analyst, wrote in a report issued today. Edelstone reiterated his ``strong buy'' rating on Rambus and a price target of $200 a share. He raised his earnings estimate for the year ending this month to 18 cents a share from 16 cents and his fiscal 2001 estimate to 45 cents from 40 cents. Rambus's designs are used by companies such as No. 1 computer- chip maker Intel Corp. to speed software applications. Rambus says some of its patents date to 1990 and cover most of the major types of memory used in electronic devices that range from personal computers to video game consoles. More licensing agreements are likely before year-end, and one or more of the lawsuits Rambus is currently involved in probably will be settled, Edelstone wrote in his report. ``We believe that every DRAM (memory) supplier and the concomitant logic interface suppliers will need to license Rambus's patents,'' Edelstone wrote. Rambus settled a lawsuit with Hitachi Ltd. in June after Japan's No. 1 electronics maker agreed to pay licensing fees. Oki Electric Industry Co. and Toshiba Corp. reached agreements with Rambus without being sued. Some chip manufacturers have balked at making certain types of Rambus-based products, saying they're difficult and expensive to produce. Hyundai Electronics Industries Co. and Micron Technology Inc. are suing Rambus, claiming it violated antitrust laws. Rambus has sued the companies, alleging they infringed on its patents.