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To: Dealer who wrote (8602)	10/18/2000 4:33:57 PM
From: taylorfife	Respond to of 65232

Rmbs reports .09 Rambus Reports Record Royalties, Revenue and Earnings for the Quarter and Year Ended September 30, 2000 Fiscal Q4 Royalties Triple Sequentially to $19.9 Million MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Oct. 18, 2000-- Q4 earnings announcement call live on website (www.rambus.com) at 2:00 p.m. PDT. Conference call replay number 800-633-8284, reservation no. 16570257; replay also available on website. Replay available for 72 hours, beginning at 4:00 p.m. PDT. Rambus Inc. (Nasdaq:RMBS - news) today reported financial results for its fourth fiscal quarter and year ended September 30, 2000. Revenues for the quarter were a record $26.9 million, up 119% over the same period last year and up 52% from the previous quarter. For the full fiscal year the Company reported revenues of $72.3 million, an increase of 67% from the previous year. Included in fourth quarter results was a record $19.9 million in royalties, more than three times the amount reported in the previous quarter. The fourth quarter results included both increased royalties received from licensees based on their shipments of RDRAMs and controllers that connect to RDRAMs (RDRAM-compatible ICs) as well as the first royalties from licensees for the use of Rambus intellectual property (IP) in SDRAMs, DDR SDRAMs and controllers that connect to them (SDRAM-compatible ICs). Royalties for the fiscal year were $32.6 million, more than four times the amount recorded in fiscal 1999. Contract revenue for the fourth fiscal quarter was $7.0 million, down $4.2 million from the previous quarter. The previous quarter results included approximately $3.7 million of deferred revenue recognized due to the cancellation of contracts of certain licensees who are reducing their activities in the DRAM market. No such revenue from contract cancellations was recognized in the fourth quarter. For the fiscal year, contract revenue was $39.7 million, an increase of 12% from fiscal 1999. Excluding acquisition-related costs, one-time employee compensation expenses taken earlier in the year and a one-time tax adjustment, pro forma operating income for the fourth quarter was $14.5 million, compared to $3.4 million in the same period last year and $6.0 million in the previous quarter. On the same basis, pro forma operating income for the fiscal year was $28.4 million compared to $9.5 million in fiscal 1999. Excluding acquisition-related costs, one-time employee compensation expenses and a one-time tax adjustment, fourth quarter pro forma net income was a record $10.2 million ($0.09 per diluted share), up 285% from the same period last year and up 115% from the previous quarter. On the same basis, pro forma net income for fiscal 2000 was $21.5 million ($0.20 per diluted share), an increase of 147% over fiscal 1999. All per-share numbers have been adjusted for a four-for-one stock split effective June 14, 2000. ``We are obviously very pleased with our financial performance in fiscal 2000 and especially in the fourth quarter,'' said Geoff Tate, CEO of Rambus Inc. ``The tremendous leveraging impact of receiving royalties--from the sale of both RDRAM-compatible and SDRAM-compatible ICs--on our financial model can be seen both in our operating statement, where our operating margin in fiscal Q4 exceeded 50% for the first time, and on the balance sheet where our total cash balances increased by $35 million during the quarter to a total of $132 million. We are confident in our long term outlook: our patent position is strong and RDRAMs offer the best solution for high performance computer, communications and consumer systems. However, near-term earnings growth will depend on the ramps of the Sony PlayStation2 into the U.S. and the Intel Pentium 4, the relative price of RDRAMs to SDRAMs and the timing of additional licensees for the use of our IP in SDRAM-compatible ICs. In addition, we anticipate increased costs in the near term due to our vigorous legal defense of our IP and a move to larger facilities for long-term growth.'' Because of its continued and growing profitability, the Company determined that it would likely be able to take advantage of its deferred tax assets and therefore booked a $38 million credit to income tax expense in the fourth quarter to eliminate a partial valuation allowance against the deferred tax assets. Rambus Inc. develops and licenses high-bandwidth chip connection technologies to enhance the performance of computers, consumer electronics and communications products. Providers of Rambus-based integrated circuits include the world's leading DRAM, ASIC and PC controller manufacturers. This release contains forward-looking statements regarding financial results for future periods. Actual results could differ materially. Among the factors which could cause results to differ materially is the possibility that the Pentium 4 and PlayStation2 ramps will be slower than expected, that shipment of Rambus ICs and other licensed products by Rambus licensees will be below forecast, that no additional licenses for SDRAM-compatible ICs will be signed, that prices of RDRAMs will remain high compared to SDRAMs and that litigation and building costs will exceed the Company's plans.

To: Dealer who wrote (8602)	10/18/2000 4:34:01 PM
From: Dealer	Read Replies (1) \| Respond to of 65232

SNDK--SanDisk Announces Record Revenue and Operating Income for Third Quarter 2000 SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 18, 2000--SanDisk Corporation (Nasdaq:SNDK - news), the world's largest supplier of flash memory data storage products, today announced record revenue for its quarter ended September 30, 2000. Total third quarter revenues were $170.8 million, an increase of 153% from $67.5 million in the third quarter of 1999 due primarily to increased revenues from CompactFlash and MultiMediaCard products and higher license and royalty revenues. Product revenues were $151.8 million, an increase of 163% from $57.6 million for the same period last year. Revenues from licenses and royalties were $19.0 million, up 92% from $9.9 million in the third quarter of 1999. Net income for the quarter was $25.6 million, up 294% compared to $6.5 million in the same period last year. In the third quarter, diluted earnings per share were $0.35, compared to $0.11 per share in the third quarter of 1999. Total revenues for the third quarter increased sequentially by 19%. Product revenues increased 24% from $122.6 million for the second quarter of 2000. Revenues from licenses and royalties were 11% lower than the previous quarter due to the timing of recognizing revenues from our various license agreements. Third quarter diluted earnings per share increased to $0.35 per share, compared to $0.33 per share for the second quarter of 2000. ``The third quarter was another excellent quarter for SanDisk with total revenues and operating income again reaching record highs,'' said Dr. Eli Harari, President and CEO of SanDisk. ``New records were achieved in product revenues and number of units and megabytes sold. Total unit sales reached a record 4.7 million, up 57% from 3 million units in the prior quarter and total Flash memory megabytes sold increased sequentially by 41%. We experienced strong sequential growth in unit and megabyte sales for both our CompactFlash and MultiMediaCard product lines. Product gross margins improved to 33%, up from 31% in the previous quarter primarily due to lower manufacturing costs which were partially offset by moderate price declines. Availability of Flash memory from the three fabs at UMC and from our partnership with Toshiba improved significantly in the second half of the quarter. ``Sales growth improved sequentially in North America, Europe and the Far East. OEM sales were robust and we are particularly encouraged by the growing strength in sales through our retail channel. ``In the fourth quarter, we expect favorable market conditions for digital cameras, digital camcorders, smart phones and industrial applications, as well as strong holiday sales of Flash cards to consumers through retail stores. Usage of our products is increasing in a number of rapidly growing consumer and industrial applications, and we are therefore optimistic about continuing growth in our business in Q4 and in 2001.'' This news release contains certain forward looking statements including our expectations for future product revenues and bookings, average selling prices, gross margin and profits that are based on current expectations and involve risks and uncertainties that may affect our business, financial condition and results of operations. In addition to the factors discussed above, other risks include: the availability of adequate supply of flash memory wafers from UMC in Taiwan and from other sources; the availability of other critical materials and components; the timely and successful manufacturing ramp up of new product generations and new foundries with acceptable yields and manufacturing costs; increased expenses and fluctuations in operating results related to the startup of wafer production at our FlashVision foundry joint venture; the timely introduction and acceptance of new consumer products that incorporate our flash storage devices; slow growth in the emerging markets for our products including the portable digital music player market; future average selling price erosion due to excess capacity and price competition; the continued successful ramp up of assembly operations in China, Taiwan and the Philippines; seasonality of product sales; success in developing brand name preference and an efficient distribution system for SanDisk's products in the retail channel; economic conditions and exchange rates in Japan, the Pacific Rim and other geographic regions as they affect SanDisk's customers; the successful development and launch of our Secure Digital card products; and the other risks detailed from time to time in our Securities and Exchange Commission filings and reports, including, but not limited to, the Form 10-Q for the quarter ended June 30, 2000 and the Annual Report on Form 10-K for the year ended December 31, 1999. Future results may differ materially from those previously reported. We assume no obligation to update the information in this release. SanDisk Corporation, the world's largest supplier of flash data storage products, designs, manufactures and markets industry-standard, solid-state data, digital imaging and audio storage products using its patented, high density flash memory and controller technology. SanDisk is based in Sunnyvale, CA. SanDisk's third quarter 2000 conference call is scheduled for 2:00 p.m. PDT, Wednesday, October 18th. The phone number is 973/872-3100. SanDisk's web site / home page address: http:/ / www.sandisk.com Note to Editors: CompactFlash and CF are trademarks of SanDisk Corporation.