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

To: Bernard Super who wrote (11274)	12/7/1998 10:44:00 AM
From: MileHigh	Read Replies (1) \| Respond to of 93625

Bernard, one must conclude that RDRAM shipments later than October 31, will have no effect on 12/31/98 earnings. That is my understanding. It will be interesting to see, mid January '99, whether Rambus management has been able to take steps to smooth the transition from the 74%/24% contracts/royalties split of the last two quarters. Cowen made a good point in their report regarding contract revenues. Since TI sold its DRA business to MU, RMBS will be able to accelerate the TI license fees over the next 4 qtrs. since TI will no longer need RMBS support in their now defunct DRAM business. And I am adding: thus would it not appear that the big jump in earnings that will bring in another wave of buyers to compete for the miniscule number of shares available will come around April, 1999? Or really even further out than that- but none of us are buying this stock due to next years earnings, but good point. IMO, it is important to know how how revenues are recognized. Even in CY '01 we will have a lag time in recognition.... Regards, MileHigh