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

To: unclewest who wrote (10415)	11/26/1998 11:17:00 AM
From: Thomas C. Donald	Respond to of 93625

UncleWest: If DRAM volume is up and revenues are flat, as you and MileHigh have been discussing, then profits are going to be significantly squeezed. Won't this bring pressure on Rambus to decrease its royalty rates? And, if Rambus refuses to budge, won't this increase the urgency felt in the industry to adopt a standard other than Rambus', such as the DDR DRAM offered by IBM/Seimens (post #10398)?

To: unclewest who wrote (10415)	11/28/1998 4:22:00 PM
From: MileHigh	Read Replies (2) \| Respond to of 93625

uncle, Re your message, since RMBS is not at "full ramp" yet, we are less effected by DRAM pricing. That is, unit volume growth will greatly exceed any decline in per unit DRAM pricing that will occur over the next 2-3 years. BUT, if RMBS was fully ramped and DRAM prices were falling, then royalty revenue would be decreased. I know this is obvious, but if actual unit volume sales are doubling if not tripling in next 2-3 years, a decrease of 5% in DRAM prices matters not, only in that they could have generated more royalties at higher DRAM prices. I am less concerned with DRAM prices this early in the game. MileHigh PS- I went out of town and we almost hit $100- I'll leave again on MON!