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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: DownSouth who wrote (43647)	1/15/1999 2:55:00 PM
From: Kenya AA	Read Replies (2) \| Respond to of 97611

DownSouth: *OT* Found this "encouarging" item on RMBS - also mentions CPQ and CRUS. Sounds like Edelstone still likes it. K Rambus slips on earnings warning Reuters Story - January 15, 1999 12:09 NEW YORK, Jan 15 (Reuters) - Shares of Rambus Inc. slumped on Friday after the maker of memory chip technology said escalating costs and a seasonal slump in royalties would likely keep earnings flat over the next two to three quarters. Rambus shares were down 9 to 89 in active morning trade. Late on Thursday the Mountain View, Calif.-based company said it earned $0.08 a share in the fiscal first quarter, up from $0.06 a year earlier and in line with Wall Street expectations. Revenues hit $10.6 million, up 13 percent from $9.7 million a year ago. But in a release, Rambus, which designs and develops technology that makes computer memory chips run faster, said earnings in the next two or three quarters were likely "to be no better than flat compared to first quarter results." It cited an expected drop in royalties from its products used in Nintendo 64 video games and a decision by Cirrus Logic Inc. and ATI Technologies Inc.'s Chromatic Research unit to end development on Rambus-based controllers for PC multimedia applications. Further, the company sees additional expenses related to the development of its Rambus IC product. Rambus stock had more than doubled since October as semiconductor and personal computer makers have geared up for production and shipment of dynamic random-access memory chips using Rambus technology (RDRAM). Japan's NEC Corp. last year said it expected to produce one million direct RDRAM chips per month by the second half of 1999. Intel Corp. , Compaq Computer Corp. and Dell Computer Corp. are a few of the computer industry giants planning to make or use Rambus' Direct RDRAM technology, which could generate hefty royalty revenues for Rambus. Morgan Stanley analyst Mark Edelstone, in a note to clients, said Rambus' long-term outlook remains on track and he expects Direct Rambus RDRAMs to ramp up into volume production in the second half of this year. But Edelstone lowered his fiscal 1999 earnings estimate to $0.33 per share from $0.40, to account better for initial timing of the Direct Rambus ramp-up