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

To: unclewest who wrote (16960)	3/3/1999 6:17:00 AM
From: unclewest	Respond to of 93625

this is actually good news. looks like the cost of rdram production is coming down. Advantest to Report Worse-Than-Expected Earnings Tokyo, March 3 (Bloomberg) -- Advantest Corp., the world's No. 1 maker of equipment to test computer memory chips, said earnings this year will be 26 percent less than initially forecast because new testing machines won't boost sales as much as expected. Advantest will probably post group net profit of 16 billion yen ($133 million) for the year ending March 31, 26 percent less than its previous forecast of 21.5 billion yen, said Hitoshi Owada, manager of the company's accounting and finance department. That's also 63 percent lower than its profit the previous year. Advantest shares fell 250 yen, or 2.9 percent, to 8,350 on the news. Volume was 527,200 shares, almost 40 percent more than the daily average the past three months. ''People are selling the shares on concern performance is deteriorating,'' said Yosuke Mitsusada, a senior fund manager at NCG Investment Management Co. The Tokyo-based company's sales are flagging because Rambus dynamic random-access memory chips used in personal computers include at their core a super high-speed logic interface, reducing demand for Advantest's new high-speed memory-chip testers. Rambus chips can be tested using a combination of the new memory testers and existing logic testers, meaning the market for the new memory testers may not be as large as expected. ''The market for the new high-speed testers could stop at between 10 and 20 percent of the existing market,'' said Noboru Sasaki, an analyst at Schroders Japan Ltd. Advantest's group sales are likely to total 142.5 billion yen in the year ending March 31, 45 percent less than the previous year and slightly lower than its previous forecast of 148 billion yen. For the year through March 2001, the company's group net income is likely to rise 19 percent on the year to 19 billion yen, thanks to a recovery in sales, spurred by increased production of Rambus chips, Owada said. 01:34:13 03/03/1999 For more stories from Bloomberg News, click here. (C) Copyright 1999 Bloomberg L.P.