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

To: Armand Perez who wrote (3854)	4/18/1998 12:44:00 PM
From: Gary Wisdom	Respond to of 93625

Re: <<Can you break down a penny?>> Armand, I am assuming that you aren't being serious here when you say that Rambus beat the estimate by the "slimmest of margins". I don't know what your definition of "slim" is, but a 23% upside surprise is not slim. Yes, 7 cents v. 6 cents is on the face of it is a 17% upside surprise, but you are dealing with rounded numbers. As I posted before, they had earnings of $1.792MM divided by 24316 diluted shares or 7.37 cents, which is a 23% upside surprise. Once again, Rambus has proven that they can beat expectations by a wide margin, as they have every quarter since they came public. This "sell-off" is a repeat of what happened after last quarter's earning surprise too, which very quickly turned around and went up $10 after the sell-off. As for the deferred revenues, they are not cancellable, as per Rambus' 10-Q. So they are solid, "in-the-bank" revenues. With 60MM shares authorized, I hope that you are not still short when they announce their 2:1 split. Remember that $17 up day in November? That'll be nothing compared to the $25 up day that will come after the split announcement. Best of luck to you.