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

To: dmf who wrote (59947)	11/2/2000 5:42:50 PM
From: jim kelley	Respond to of 93625

This is a spin story being sold as controversy enhancing. RAMBUS is extremely conservative in revenue recognition. The 26% non royalty earning is due to spreading the contract and settlement and back royalties over a 20 quarters. This is allowable and smooths out the earnings growth. But in reality, RAMBUS cash went up about 35 M dollars last quarter. So it is real money they are getting. If they had taken this all at once the EPS would have tripled. Expect the same thing this quarter except royalties may go double again but the contract, etc payment will also jump again as they did last quarter. It is a very good business model!