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

To: sylvester80 who wrote (58126)	10/19/2000 11:25:10 AM
From: blake_paterson	Respond to of 93625

sly: "Rambus could have reported 30c in earnings but they instead put them as deferred revenue for later quarters..." This has been standard accounting procedure for the bus since day one of operations, sly. They do not recognize all income up front (instead, they defer the majority), yet tend to recognize all liabilities up front (see the way they recognized all option expense possible earlier this year), and yet they continue to deliver strong financial performance. This is what makes them so good. "Oh, then there is ANOTHER little "issue" -- that $0.09 that they reported was after deducting $0.05 for taxes. Only, in reality, I don't think there will be any taxes, because that huge paper "loss" in the first quarter for employee stock options generated a huge tax-loss carryforward." At end of FY1999, they had a $27MM total deferred income tax asset, but the used valuation allowance to reduce that number to $5.5MM. This means that they have up $27MM of deferred tax assets (credits, including 1999 NOL carryovers) which they can apply to income taxes, but are only booking $5.5MM "due to the uncertainty surrounding the realization of such assets." Most companies would have maximized the value of the assets as far as GAAP would have allowed. Now THAT is conservative and HONEST. These guys are managing for a CSCO-like performance in the coming decade. They need to finish up their litigation, focus on consumer and comm applications of their chip:chip technology, and work with licensees to reduce RDRAM cost for PC's. The rest is background noise. JMHO, BP