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

To: REH who wrote (16969)	3/3/1999 11:23:00 AM
From: REH	Read Replies (1) \| Respond to of 93625

Dain Rauscher Wessels Sony to use Rambus and MIPS Intellectual Property Rambus: Buy-Aggressive Price Target: $ 110.00 Mips: Strong Buy-Aggressive Price Target: $ 50.00 * Sony announced that its next generation PlayStation game machine will contain a MIPS-based I/O processor, a main CPU, and a Rambus memory architecture. * This significant design win should help each company diversify its royalty base, although the timing of future PlayStation royalties is currently uncertain. * The announcement highlights the key enabling role of Rambus and MIPS-based intellectual property in the development of leading edge consumer electronics. * We have no change to our estimates. We reiterate our Buy-Aggressive rating on RMBS shares and our Strong Buy Aggressive rating on MIPS Sony to use Rambus and MIPS Intellectual Property in the next-generation PlayStation Sony announced yesterday that it will launch a next generation PlayStation game machine that will use MIPS-based I/O processor developed by LSI logic and Direct Rambus DRAM memory chips. The machine will also use a 128 bit MIPS architecture 300MHz CPU (called Emotion Engine) developed by Toshiba. A Key Design Win For Both Companies: Sony's PlayStation is a significant and highly visible design win for both Rambus and MIPS. The collaboration between Sony and LSI Logic extends the partnership that started when LSI Logic's development of a single-chip CPU for the original PlayStation, which has generated world-wide sales in excess of 50 million units.........Direct Rambus DRAM chips will be used to meet the memory requirements of the high performance microprocessor core and 3-D graphics environment. Royalties: Both Rambus and MIPS receive end product royalties that are based on the average selling price and volume units shipped. While both companies keep the terms of their customer specific licensing agreements private, overall per unit royalties in the range of 5% of the average selling price of the respective chips in the PlayStation could be a reasonable expectation. For both Rambus and MIPS, Sony's use of the company's IP in the PlayStation provides an important diversification of royalty revenues. Stock Opinion: Sony's announcement are an endorsement of MIPS' and Rambus' technology and of the continuing success of the intellectual property business model. Using key enabling intellectual property components allow Sony to achieve both technological and time to market advantages. We expect other game manufacturers and consumer electronics companies to follow Sony's lead.

To: REH who wrote (16969)	3/3/1999 5:46:00 PM
From: Gary Wisdom	Read Replies (2) \| Respond to of 93625

REH, I hope Dain Rauscher takes Rambus off their buy list now. Didn't do squat for it. Probably the short sellers saw their upgrade and targetted the stock after that. Amazing how almost every semi closed near the high today except for Rambus (and Micron of course). Guess they went after the weakest link. As I've said a million times, Rambus shareholders have the weakest hands I've ever seen. Just say boo and they sell. Why would anyone sell the stock under $71 today? That's just stupid when they could have sold it for $75 and change all day yesterday.