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

To: Alan Hume who wrote (20508)	5/20/1999 4:33:00 AM
From: Ian Anderson	Read Replies (1) \| Respond to of 93625

DRAM pricing and revenue projection Today a 128 MB SDRAM DIM costs around $135 discounted retail, so probably around $80 ex-works in quantity. This has 8 chips on it, i.e $10 per chip. If we assume that a RIMM commands no premium (pesimistic), and that most systems will ship with 1 RIMM (again pesimistic), then we could expect that RMBS earns around $1.50 for each RAMBUS PC shipped, just on memory sales. If I remember correctly worldwide PC sales for 2000 are predicted at around 100M. If RAMBUS acheives a 30% market share in 2000, then I think revenue should be $1.5 x 100M x 30% = $45M. I dont know the number of shares outstanding, so someone please help with an eps number! (I pointed this out earlier, but bizarely there is a another company, PTEC which earns a similar amount per PC on a larger market share of PCs made. Their market cap is only 200M, and PE is around 16. Make of that what you like.) Note that this is from PC RIMM sales only, and does not include chipset licencing deals, or games machines.