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

To: sylvester80 who wrote (58069)	10/18/2000 6:49:35 PM
From: Estephen	Respond to of 93625

Rambus beats estimates as profits quadruple By Bloomberg News October 18, 2000, 2:55 p.m. PT Memory-chip designer Rambus said fiscal fourth-quarter profit rose nearly fourfold as royalties surged from semiconductor companies that license its designs. Net income for the quarter ended Sept. 30 rose to $10.2 million, or 9 cents a share, from $2.63 million, or a split-adjusted 3 cents a share, a year earlier, said Gary Harmon, chief financial officer. Revenue more than doubled, to $26.9 million from $12.3 million. • Get the "Big Picture" • Related News • Message Boards Quote Snapshot RMBS 58.75 +0.94 INTC 38.19 +2.00 · Real-Time Quotes Enter symbol: · Symbol Lookup Quotes delayed 20+ minutes Rambus' chip designs are used by companies such as Intel to speed software applications. Rambus says some of its patents date back to 1990 and cover most of the major types of memory used in electronic devices that range from personal computers to video game consoles. The company was expected to report 6 cents a share, the average estimate of analysts surveyed by First Call/Thomson Financial. Shares of Mountain View, Calif.-based Rambus rose 94 cents to $58.75 before the release of earnings. Its shares have risen more than threefold this year. The company's long-term prospects, however, are, as always, the subject of debate. Sales of memory chips based on Rambus designs will likely pick up with the release of the PlayStation 2 and the Pentium 4 processor. Rambus is included in the PlayStation 2 and is the only type of memory that will work with the Pentium 4 initially. Intel, however, has indicated that it will move away from Rambus and toward a competing, less expensive, type of memory called DDR DRAM. In mid-2001, Intel will come out with a chipset that allows computer makers to use standard memory with a Pentium 4 while Paul Otellini, general manager of the Intel Architecture Group, said yesterday that Intel was looking at DDR DRAM, a departure from the usual Intel stance. "We are exploring DDR on the desktop," he said. Adoption of DDR DRAM in some respects will help Rambus. Rambus claims that its patents cover DDR DRAM. Several memory manufacturers, in fact, have entered into settlement agreements under which they will pay Rambus royalties for manufacturing DDR DRAM. However, the largest memory manufacturers have yet to agree on a settlement. News.com's Michael Kanellos contributed to this report. Copyright 2000, Bloomberg L.P. All Rights Reserved.