Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: charred water who wrote (64207)	1/11/2001 8:25:27 PM
From: Barry Grossman	Read Replies (1) \| Respond to of 93625

yahoo.cnet.com Rambus reports profit leap as royalties pour in By Bloomberg News January 11, 2001, 4:40 p.m. PT Computer memory chip designer Rambus said fiscal first-quarter profit rose more than fivefold and revenue almost tripled as more companies agreed to pay royalties to use its technology. Net income rose to $13 million, or 12 cents a share, from $2.5 million, or a split-adjusted 2 cents, from a year ago. Sales in the period ended Dec. 31 rose to $34.7 million from $11.9 million. Profit missed the average analyst estimate from First Call by a penny, sending shares down as much as 14 percent. Intel, the world's largest chipmaker for computers, uses Rambus patents for chips that accelerate software and multimedia applications. Seven semiconductor companies have agreed to pay Rambus royalties for a broader range of memory-chip designs, which speed information from one chip to another in personal computers and video-game consoles. "The financial leverage of these deals is extremely high, since Rambus does not make the chips and has no production costs," Eric Chen, a J.P Morgan Chase analyst, said before the earnings release. He rates Rambus shares a "long-term buy." Royalties for the first quarter rose tenfold from the year-earlier quarter to $26.8 million and were up 35 percent from the previous quarter, the company said. The company said it would have earned 13 cents a share if not for a higher tax rate. Rambus also said that because prices for SDRAM memory chips decreased in the December quarter, it doesn't expect royalties in the current period to rise from the previous quarter. The company said its tax rate increased to 40 percent from 35 percent because of its "substantially increased level of profitability and limited tax-reduction opportunities." Six of the 10 largest memory-chip makers have agreed to pay Rambus royalties for a wide range of chip designs for use in computers, telecommunications gear, high-definition televisions and Sony's PlayStation2 video game consoles. Other companies are contesting Rambus's patents. Micron Technology, Infineon Technologies and Hyundai Electronics are suing Rambus or being sued by Rambus--or both--over legal rights to computer-chip technology. In a conference call after the release of earnings, Chief Executive Geoff Tate said three trials are set for February and March. "There has been nothing presented in any of these that threaten our intellectual property," Tate said. Tate said he expected Rambus' legal costs to rise between $500,000 to $1 million this quarter from costs in the first quarter as the trials draw near. He said Rambus ''is always willing to negotiate'' to settle the lawsuits. More from News.com • Rambus seeks royalties from Nvidia December 13, 2000 • Analysts like Rambus' lawsuit chances December 1, 2000 • Kingston to spend $75 million to promote Rambus November 6, 2000 • Rambus rebounds with Samsung licensing deal November 1, 2000 • Send us your news tips • Get the "Big Picture" • Get News Alerts • Message Boards • Search News.com Also from CNET Networks • Compare Local DSL Providers • Compare Enterprise Servers • Popular Networking Solutions • CNET's Top 5 Linux Apps • Price Bargain Notebooks • Examine E-commerce Systems Latest Headlines display on desktop Enterprise Computing Suit accuses VA Linux of deceiving investors Rambus reports profit leap as royalties pour in Oracle exec to sell $33 million in stock Security hole found in Borland database Communications Broadband wireless powerhouse merger scuttled Nortel eliminating jobs to hone high-growth areas Bottom fishing boosts some phone, cable stocks Entertainment & Media AOL Time Warner: A media titan or a Net giant? Consumers may see few changes with AOL Time Warner AOL, Time Warner cleared to cement union Crime author prepares first e-book story DoubleClick tops estimates Personal Technology IBM combines low-tech notes with high-tech hardware Gateway to cut 3,000 jobs amid poor earnings GM joins handheld beaming craze E-Business Digital River anticipates improved earnings Built-to-order cars run out of gas Connecticut sues Net company for labor violation Some Nazi items still appear after Yahoo ban Ariba glides past estimates; beefs up forecasts Did you miss a day? One Week View Dell Computers starting at $999 PCs for your home PCs for your home office PCs for small business News.com Dispatch: HTML edition CNET News.Context CNET Investor Dispatch: HTML edition All Newsletters News Options: One Week View \| Send us your news tips \| News to Go \| Advanced Search Chase Platinum Credit Card Contact us CNET Services: CNET.com · News.com · Computers.com · Builder.com · Gamecenter.com · Download.com · Shareware.com · Browsers.com · Search.com · Shopper.com · CNET TV · Tech Jobs · Free Email Free Newsletter! Subscribe \| How to advertise \| Corrections \| CNET Jobs \| CNET Support About CNET Back to Top Copyright©1995-2001 CNET Networks, Inc. All rights reserved.Privacy policy.

To: charred water who wrote (64207)	1/11/2001 8:26:53 PM
From: Barry Grossman	Respond to of 93625

yahoo.cnet.com Rambus reports profit leap as royalties pour in By Bloomberg News January 11, 2001, 4:40 p.m. PT Computer memory chip designer Rambus said fiscal first-quarter profit rose more than fivefold and revenue almost tripled as more companies agreed to pay royalties to use its technology. Net income rose to $13 million, or 12 cents a share, from $2.5 million, or a split-adjusted 2 cents, from a year ago. Sales in the period ended Dec. 31 rose to $34.7 million from $11.9 million. Profit missed the average analyst estimate from First Call by a penny, sending shares down as much as 14 percent. Intel, the world's largest chipmaker for computers, uses Rambus patents for chips that accelerate software and multimedia applications. Seven semiconductor companies have agreed to pay Rambus royalties for a broader range of memory-chip designs, which speed information from one chip to another in personal computers and video-game consoles. "The financial leverage of these deals is extremely high, since Rambus does not make the chips and has no production costs," Eric Chen, a J.P Morgan Chase analyst, said before the earnings release. He rates Rambus shares a "long-term buy." Royalties for the first quarter rose tenfold from the year-earlier quarter to $26.8 million and were up 35 percent from the previous quarter, the company said. The company said it would have earned 13 cents a share if not for a higher tax rate. Rambus also said that because prices for SDRAM memory chips decreased in the December quarter, it doesn't expect royalties in the current period to rise from the previous quarter. The company said its tax rate increased to 40 percent from 35 percent because of its "substantially increased level of profitability and limited tax-reduction opportunities." Six of the 10 largest memory-chip makers have agreed to pay Rambus royalties for a wide range of chip designs for use in computers, telecommunications gear, high-definition televisions and Sony's PlayStation2 video game consoles. Other companies are contesting Rambus's patents. Micron Technology, Infineon Technologies and Hyundai Electronics are suing Rambus or being sued by Rambus--or both--over legal rights to computer-chip technology. In a conference call after the release of earnings, Chief Executive Geoff Tate said three trials are set for February and March. "There has been nothing presented in any of these that threaten our intellectual property," Tate said. Tate said he expected Rambus' legal costs to rise between $500,000 to $1 million this quarter from costs in the first quarter as the trials draw near. He said Rambus ''is always willing to negotiate'' to settle the lawsuits.