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

To: sam who wrote (5716)	7/15/1998 3:54:00 PM
From: REH	Read Replies (2) \| Respond to of 93625

Rambus Share Surge Amid Analysts' Praise, Earnings On Target Dow Jones Online News, Wednesday, July 15, 1998 at 15:14 NEW YORK -(Dow Jones)- Shares of Rambus Inc., a fast-growing developer of semiconductor technology, rose sharply Wednesday amid favorable comments by analysts and earnings that met expectations. The Mountain View, Calif., company Wednesday reported that net income more than tripled for the fiscal third quarter, ended June 30, to $1.7 million, or seven cents a diluted share, from $527,000, or two cents a diluted share, a year earlier. Revenue climbed by 35% to $9.2 million from $6.8 million a year earlier. The latest results matched the mean estimate of five analysts surveyed by First Call. In addition, analysts see Rambus moving quickly to establish a dominant market share in DRAM (dynamic random access memory) chips. Rambus' DRAM technology is expected to become the de facto standard because it was codeveloped with Intel Corp. (INTC), the industry leader. The next major event that investors should watch for is when Intel ships samples of a chipset using Rambus' technology late in the third quarter, said Hambrecht & Quist Inc. analyst Robert Chaplinsky earlier this month. "The timeline for DRAM to succeed in the marketplace continues to be reaffirmed by Rambus and its partners," said Morgan Stanley Dean Witter analyst Mark Edelstone, "We believe it will start to show up in the market in the fourth quarter (ending Sept. 30) of 1999 when Intel Corp. introduces its Camino chipset, which supports their Katmai microprocessor," or its next generation Pentium II chip. This Intel chipset, code-named Camino, enables the main microprocessor to use the Rambus memory. Edelstone anticipates Rambus' architecture will begin to dominate the DRAM market by 2002 and 2003. He projects earnings of 28 cents a share for fiscal 1998 and 45 cents for fiscal 1999, up from 9 cents a share in fiscal 1997. The company's fiscal year ends Sept. 30. His views are in line with analysis by Japan's Toshiba Corp.'s, which expects DRAM chips based on Rambus technology to account for 50% of the global DRAM chip market by 2001. According to analyst Robert Fagin of CIBC Oppenheimer Corp., "As Rambus' licensees move closer towards full implementation of their solutions, visibility increases quarter by quarter." In a research note published Wednesday, Edelstone said Rambus and its partners "continue to make progress on delivering the Direct Rambus whole product solution, with the first samples delivered by Toshiba and LG Semicon Co." Compaq Computer Corp. (CPQ) and Dell Computer Corp. (DELL) also confirmed they plan to ship personal computers with the technology in 1999, he added. Edelstone boosted his 12-month share-price target Wednesday for Rambus to $80 from $60. In Nasdaq trading Wednesday afternoon, Rambus shares (RMBS) were up $5.875, or 10%, to $64.625. Volume totaled nearly 2.8 million shares, compared with average daily volume of 759,300. The company's stock has been prone to wild fluctuations since going public last year.