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

To: jr_not_ewing who wrote (71801)	5/3/2001 7:20:46 PM
From: Don Green	Respond to of 93625

Rambus Up 9% On Higher-Than-Expected DDR Royalties May 3, 2001 By Kathy Chu Of DOW JONES NEWSWIRES NEW YORK -- Rambus Inc. (RMBS) shares surged up to 19% Thursday after an Internet news service reported that the chip designer gets a higher-than-expected royalty rate for one of its chips. EBNews, in an article published on its Web site late Tuesday, said Rambus gets a technology royalty rate of 3.5% of sales for the Double-Data-Rate, or DDR, chip - significantly better than analysts' expectations of a 2% to 2.5% royalty rate. The news service cited testimony from Rambus' ongoing patent-infringement trial against Infineon Technologies AG (IFX), in which Rambus was forced to disclose these rates. A Richmond, Va., federal judge on Monday dismissed most of Rambus' claims against Infineon. Rambus spokeswoman Kristine Wiseman confirmed Thursday that the company charges licensees 3.5% of sales of its DDR chip. This information hadn't been disclosed before, said Wiseman, as a "normal" part of company policy. The spokeswoman also declined to disclose what percentage of Rambus' 2000 revenue was made up of DDR royalties. No news was released Thursday she said. Shares of Rambus recently changed hands at $18.35, up $1.95, or 12%, on volume of 15.1 million. Average daily volume is 5 million shares. Rambus' rise comes on a day when most semiconductor stocks fell. The Philadelphia Semiconductor Index was recently at 643.64, down 4%. The tech-laden Nasdaq Composite Index was at 2134.81, down 85.79. - Kathy Chu, Dow Jones Newswires; (201) 983-2205 (Corrected 06:37 PM) EBNews, in an article published on its Web site late Tuesday, said Rambus gets a technology royalty rate of 3.5% of sales for the Double-Data-Rate, or DDR, chip - significantly better than analysts' expectations of a 2% to 2.5% royalty rate.