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

To: unclewest who wrote (10406)	11/26/1998 10:50:00 AM
From: Thomas C. Donald	Respond to of 93625

UncleWest: You stated in post #10406 that "rambus ceo has stated recently that computer royalties will comprise only 50% of revenues". I had understood earlier that "DRAM" royalties (as opposed to "computer") would comprise only 50% of revenues. Since DRAM is used in other things than computers, should we now conclude that DRAM royalties will comprise significantly more than 50% of Rambus' total royalties? That suggests that our revenue estimates should be decreased. Also, I don't believe that you commented on the article in post #10398 regarding Siemens' Double Data Rate SDRAM which said: "The 1Gbit SDRAM will be available in organizations of x16 and x32 and offers DDR functionality. This advanced feature enables the chip to achieve a data rate of 400 Mbit per second per pin making it the world's fastest DDR SDRAM devices. The 1Gbit SDRAM was developed together with IBM at the company's Advanced Semiconductor Technology Center (ASTC) in East Fishkill, N.Y." Does this challenge from IBM/Siemens have any advantages over Rambus' proposals? Both seem to have similar performance characteristics. Which is the least complicated and uses the least power? Which can be most easily accommodated by chipsets? Which would the industry be most comfortable in adopting as a new standard for PCs? Finally, what is your opinion on the article posted by MileHigh (#10409) indicating that "there will be virtually no semiconductor revenue growth for 1999".

To: unclewest who wrote (10406)	11/26/1998 1:05:00 PM
From: Alan Hume	Read Replies (2) \| Respond to of 93625

Hi Uncle, I agree with your analysis in general, but I am a little bit hesitant about the royalty and revenue predictions. Here's why: 1) I suspect that RDRAM is shaping up to take a much larger slice of the desktop market than Rambus calculated. Hence matching this up with a further 50% from other applications may prove difficult. 2) Assuming that Andy Grove is a VERY astute businessman, at the time he was investing 500 mil in INTEL, guaranteeing RMBS the Kings Schilling (I love that phrase), it would seem logical in my eyes that he would have negotiated a very favourable licensing fee for MU while he was about it. (You scratch my back, i'll scratch yours) By the way you asked some others what they were drinking, speaking for myself, when in a partying mood I like beer around lunchtime, switch to wine late afternoon, and scotch mid evening.(What comes after that I never remember) February 26th or thereabouts I look forward to sharing it with ya'll (see practicing my American already) Have a good one Alan