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

To: Michel Bera who wrote (2783)	1/16/1998 12:58:00 PM
From: Edgar Costello	Read Replies (6) \| Respond to of 93625

"Intel is at odds with Rambus" is what and industry insider has informed me. Rambus part has a die penalty that is prohibitive and the schedule doesn't look as good as previously thought. DRAM vendors are nervous and ready to back out of it. High end systems can not use Rambus part due to its x18/x16 I/O structure.( The so called "chip kill" problem can not be implemented with a x16/x18 part). There is more bad news to come.

To: Michel Bera who wrote (2783)	1/16/1998 3:07:00 PM
From: Ibexx	Respond to of 93625

Michel, Below is H&Q's post EPS update on RMBS: SUMMARY: 1. Rambus reported December quarter financial results of $ 0.06 EPS on $9.5 million in revenue, slightly above our estimates of $0.05 EPS and $8.5 million in revenues. 2. Royalties were up 84% for the September quarter to $2.71 million related to strong seasonal sales of Nintendo64 game consoles. 3. The royalty outlook for next several quarters appears to be relatively flat primarily due to seasonal weakness in sales of Nintendo64 and limited contribution from other Rambus-based consumer and computing applications. 4.Joint development work with Intel on next-generation PC main memory chipsets based on Direct DRRAM technology, is on track and expected to sample in mid-1998. Rambus confirms that over 13 DRAM manufacturers and logic IC vendors are rapidly developing Rambus-based solutions with varying introduction rates in 1998 and 1999. 5. Rambus indicates that over 6 PC OEMS including Compaq, HP, Micron, Dell, and Gateway are shipping PCs based on Rambus memory technology for multimedia accelerations. 6. Other Rambus-based applicationsinclud Gbyte Ethernet solutions by two private companies, an ATM switch solution from NEC, and Digital TV solutions from Panasonic and LG Semicon. These products are expected to ramp and provide Rambus royalty in 2H'98 timeframe. 7. Recommendation: We (H&Q) continue to believe that Rambus' technology is gaining significant industry momentum for PC and other endmarket and we reiterate our BUY rating on RMBS and our 6-9 month price target of $100. ______ As usual, please read at your own risk and make your own decisions. Ibexx