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

To: RetiredNow who wrote (4533)	6/10/1998 2:40:00 PM
From: Kenny	Read Replies (2) \| Respond to of 93625

Mindmeld, back at the beginning of May, I read a post that quoted CFO Gary Harmon as saying that "Rambus has $64 million in deferred revenue, or sales that the company recognizes over a five-year period. Of that money, $25 million is set aside to be recognized over the coming five quarters . . . that short-term amount is about equal to last year's total sales." In light of this, how do you feel about analyst earnings estimates for next quarter---due out July 10? Do you feel as though the deferred revenue has been factored in? If you could help bring me up to speed on this, I'd appreciate it. Thanks. Ken

To: RetiredNow who wrote (4533)	6/11/1998 7:29:00 AM
From: Thomas P. Friend	Respond to of 93625

mindmeld, I'll say it once again. I agree that RDRAM will get there eventually. And I agree that it will be in most of the systems based on intel's future processors. But intel's future processors will compete with intel's current processors. Until machines based on those processors can compete on price, or until there is some software that compels people to upgrade, the market penetration of those products will be slow. Pentium II has been around a long time; it is just now beginning to take over as the processor of choice, and that is because the price is dropping rapidly and getting near the price of Pentium MMX based systems. The big problem is going to be: how do you get substantial royalties from one part of a product that costs $1000? I don't see anyone having an answer for that. I don't. Cheers, Tom