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<As you pointed out 375,000 shares is a combination of stock awards and options.
Happy? >
Indeed ... its not about being right or wrong to me. It is about having good information to make decisions. You have provided a lot of good information in the few months that I have read this board and for that I thank you.
I actually helped further your argument - in contradiction to my current personal belief (your comments on the topic remain under consideration.) You were understating HH's compensation as the restricted stock conveyed a larger compensation benefit.
< My data is from page 33 (Proxy) of the 2005 Annual Report.>
***
Page 33 of the proxy I link below does not indicate that HH received 375,000 options last year.
http://investor.rambus.com//EdgarDetail.cfm?CIK=917273&FID=1193125-06-65378&SID=06-00
Again, HH received 250,00 in options and 125,000 in restricted stock.
Where on page 33 do you find reference that HH received 375,000 options?
Is it splitting hairs? Only if you think $2.7 is significant.
The options had an average share price of $21.15. Please see page 34 of link below.
http://investor.rambus.com//EdgarDetail.cfm?CIK=917273&FID=1193125-06-65378&SID=06-00
The restricted stock is explained in the 10-K for the fiscal year ended 12/31/05 at page 38, which is linked below the following quote:
"On January 10, 2005, we granted 125,000 shares of restricted stock to our CEO and President. The price of the underlying shares is $0.001 per share. We recorded deferred stock-based compensation of $2.7 million based on the fair market value of our common stock on the date of grant. The deferred stock-based compensation was amortized ratably over the vesting period of six months and a total of $2.7 million was recorded in marketing, general and administrative expense in the year ended December 31, 2005. There was no outstanding deferred stock-based compensation balance as of December 31, 2005."
http://investor.rambus.com//EdgarDetail.cfm?CIK=917273&FID=1193125-06-35902&SID=06-00
Respectfully Cal, you are mistaken on this issue. Take a ride, shake it off and be man enough to admit it . . .isn't that what you think HH should do?
Cal, chill . . .
<Listed “job opening” at Rambus.com or any other site, does not necessarily equate with an actual opening.
That's absurd! What are you, a see no evil, hear no evil, speak no evil investor?>
Say what? What does evil have to do with anything?
I made a simple statement - which was not intended to be an attack on you.
I do not know if the "job opening" has been filled. I do not know if the job opening is current or prospective. Do you?
***
<As for negative inferences to the new CFO, all I can remember is his continuing crying about the new options expensing method. Take it like a man and fix the problem!>
Fix it - how?
***
<Hughes received 250K options with a strike price of $21.51. These options vest ratably over 48 months.
Please 2005 Annual Report at page 35.
You're splitting hairs. My data is from page 33 (Proxy) of the 2005 Annual Report.>
Some pretty expensive hairs! The 250K of options have a buy-in of $21.51 each. The 125K of stock is, well FREE. That would be $21.15 x 125K of difference or as you note - splitting hairs . . but what is $2.68 million between friends?
***
<The guy is clueless. I had a boss . . .>
I don't know your former boss. Likely a very fine individual.
I don't like everything about HH.
I personally like Dr. Pepper, not Coke. I don't like how HH responded to Mr. Dowd. I don't like how HH didn't apologize.
I don't like the fact the Rambus successfully crammed proposals down our throats wihtout bothering to make additional effort to explain once they understood there was shareholder concern.
I could complain further, but I won't.
Bottom line, I like where Rambus is today as compared to one year ago. And that is worth millions/year, at least to me.
Could HH do better. IMHO, beyond a doubt.
Then again, I could be wrong.
Cal, no offense intended.
I could be wrong.
And I was ... and it feels good!
Maybe as distant as June 5. Twenty days post "entry" is June 4. On my calendar, that is a Sunday, considered a court holiday, giving the parties until the close of business the first non-court-holiday, the 5th.
Plenty of confusion with the "signed", "filed" and "entry of notice" dates being different.
I could be wrong.
<In the meantime, where are the DOJ "dynamite" documents?>
Contrary to popular belief, clock hasn't finished ticking . . .
ThreeJack:
<So, will give Mr. Tate a "treowth hat tip" . . .>
You are licensed royalty free for life . . .
<Bad enough Rambus shareholders have to contend with unethical cartel behavior, but having to overcome stupid Rambus executive behavior fueled by self-interests is hard to accept.>
Let's give the committee an opportunity to respond before assuming improper back-dating.
Calbiker part 2.
Again, respectfully . . .
<Hughes got ~$600M in salary and bonus as well as 375,000 options last year. That's not excessive?>
Actually,
Hughes received 250K options with a strike price of $21.51. These options vest ratably over 48 months.
Please 2005 Annual Report at page 35.
Hughes also received 125K of “restricted stock” which vested in January 2005. Apparently, Hughes’ basis is $0.00.
Please see SEC filing of 1/12/05 linked below:
http://investor.rambus.com//EdgarDetail.cfm?CIK=917273&FID=1193125-05-6042&SID=05-00
I personally do not consider the compensation as excessive.
Please see Treowth post linked below:
http://treowth.blogspot.com/2006/05/executive-compensation-hughes.html
<Are Intel and AMD apart of your si valley?>
I am not familiar with AMD’s program. Intel can be very fair, some say generous. Unfortunately for the Intel employees, the stock price has made most options presently worthless or near so.
Currently, Intel is granting restricted stock to the lower level, options to the top and a blend to the middle group. Stock has value. Options do not unless the share price climbs.
<Options programs are linked to success: exercise price set at market price on day option is granted.
If only. We know that's not the case with rmbs. They most likely back dated their options to $3 pps. That's fraud and they should be punished if found guilty.>
Evidence please? They did not - take that to the bank.
<In the Eulau case, IMO it also may have been the case that he was forced out.
You really believe that? And to boot he got a great job with an up-start computer manufacturer right away? It would be almost be believable if Rambus snagged a top notch CFO. But that doesn't appear to be the case. It doesn't add up as you say.>
Eulau is apparently happy and so is Rambus. No need to throw stones or point fingers. I believe the current CFO is a good fit. It is way too early in my opinion to draw any negative inferences.
<What about Fox? He appeared to be a top notch engineer. He left Rambus for Nvidia some 3-4 years ago. It doesn't look like the options package worked for him. Bet where were lots more like him.>
Nobody wins them all. Nobody.
Calbiker part 1:
Respectfully, I respond.
< . . . There are lots of job openings. >
Listed “job opening” at Rambus.com or any other site, does not necessarily equate with an actual opening.
>Proxy from last month shows 250k options to execs, 2.9 million to non-execs. I don't see an issue with that.
I missed that. Do you have a link?”>
Page 20 of the 2005 Annual report.
<There are 7 execs, and about 300 employees. That means the execs got $30/share * 250k/7 = $1.1M/person, and the employees got $30/share * 2.9M/300 = $0.29M/person. I still question the numbers, yet in this example the execs get 3.8 times more than let's say the engineer. >
Actually,
All Executive officers as a group received 250K options with an average exercise share price of $21.51. Also, 125K of restricted stock.
All directors not executive officers as a group received 160K options with an average exercise share price of $13.12.
All employees not executive officers as a group received 2,923K+/- options with an average exercise share price of $15.25.
"Here's to Green Thumbs : )"
***
Good one!
The Google Alert link is broken on Treowth. I am attempting to correct - until then:
http://www.google.com/alerts
Investorshub is the most used outgoing link at Treowth :)
"The best part for me (well other than the money) is being able to finally tell people: "I told you so".
****
I admit I am on that boat with you. Every other year at family reunion . . . "Soooooo, how is your RambusT doing? Whatever happened to RDRAM? etc., etc. . . "
Add to that brokers at two firms I use - you know the drill. It got so bad that I opened an E*Trade account just to hide additional purchases.
Hope you are correct when you post:
"These folks aren't dopes and wouldn't sell if they had inside information."
I want to agree with your assessment, however, I respectfully suggest that money (enough of it) makes dopes out of everybody.
Ramboids are giddy at the moment. It hasn't always been so rosey and as I post, the 18 month high has not been reached.
Certain insiders have dumped a lot of shares over the years. I am not willing to simply forget.
Hughes took a public stand and others have not sold - until lately - for whatever reason. I applaud those insiders who have held or only sold minimal amounts during the dark times.
I don't begrude the insiders taking a little off the table when the float is high and the share price is climbing .. .
Dopes or not? Too early to say.
Rally Time Monkey
http://www.rallymonkey.com/video/kenindex.swf
What a nice way to begin the week.
<Treowth, why not post the link to Judge McGuire's ID or Judge Whyte's spoliation ruling. Tell them if they want to know the truth about what happened, they can get educated. Or not. Ignorance is bliss to some.
Persevere if you must, Treowth. Conversions occur one at a time...>
***
You get around!
I have to admit I am a novice at Slashdot. Took me several attempts to register last night. Site suggested my firewall was causing a problem . . . whatever. By the time I was registered, I was a bit annoyed. Tried to preview my post and that didn't work. Have no clue about their rating system.
Posters at Slashdot are claiming that Rambus will increase the cost of memory 300%. I am thinking that Cal needs to adjust his projections and plan on buying an island, not merely a hut on an island!
I have a save the world complex . . . therapist that Croaker Frog recommended didn't help . . . sorry, wrong board.
The Xbox 360 release supply is a joke. Gamers are furious that Microsoft didn't simply focus on one region to ensure that there would be adequate supply.
My son (at one time ranked in the top 50 - Halo II Live) made a deposit for Xbox 360 last June. He finally, received his box last Tuesday. He tells me "it is worth it" and the game supply is "ok". But he made plenty of unkind comments about Microsoft over the last few weeks . . .
I hope that Sony does a better job with PS3.
<This must have been filed extremely late last night or I missed it.>
***
I looked at about 10:30 pm CA and didn't see it.
Payne is no Zeus
If he was, he would be throwing down some lightening bolts.
I don't read the following as any indication that JP is very confident in his ability to fry Rambus . . .
***
Payne asked if they could reach an amicable agreement without a ruling. Did they get anywhere in the two day mediation?
Stone: We got somewhere - we got to Chicago" But more mediation is scheduled. All parties wanted to continue
Payne: You should resolve this as a business matter between yourselves.
Later Payne repeated to settle - even over holidays
Healy mentioned at one point that he thought it was difficult to fathom how the gap between parties could close without further litigation clarity.
THE COURT: What I don't really want is for you to have an accident and be hurt.
***
Thanks for the transcript. His Honor plugs along.
I get what I pay for at TMF, a great Rambus Message Board. What I don't want to pay for is TMF damaging my investment by publishing bad facts under its banner in the guise of "It's Take." ThreeJack
***
ThreeJack - Nice job. I exchanged e-mails with TMF yesterday as they went through mulitple posted revisions. My e-mails were not nearly as gentlemanly as yours. You are to be commended.
I don't wish to defend TME, but Rambus is a complicated story. I think that sometimes we take for granted our accumulated knowledge.
<OT Treowth - your link does not appear to be working. I used it through Yahoo successfully, but the link on your site doesn't seem to go anywhere.>
***
Skeptic - Thanks for the heads-up.
I am not sure which link?
I tested the link with the original post and it linked to Treowth, page one - links for Frappr are in right column, there are three.
I tested the links on Treowth and they seem to be working.
I will test them again later today.
BTW - "S. Appleton" is on the Ramboid Frappr with a picture of a donkey. He took my picture!
OT - Frappr(s) on Treowth.
I created a "Ramboids" Frappr last evening. Then I received several suggestions for better Frappr titles. I added "Rambus Nation" and "Rambusarians."
The Frappr(s) are located in the links column (right side) below the meters.
http://treowth.blogspot.com/
You may vote with your ID on the respective Frappr(s). If you haven't Frappred before, it is easy and it is easy to delete your ID.
Click the "Add Yourself".
Very interesting article. Nice find.
Heat seems to be causing most of the problems from what I have read.
Does anyone know somebody who actually shipped their Xbox 360 back to Microsoft for repair?
The article makes it appear simple to obtain service. I did not seem any mention at Microsoft's site about Microsoft paying for shipping (overnight) if the problem could not be resolved via the telephone or e-mail.
"Crash Box" . . now that is funny.
iSupply breakdown in component cost here.
http://www.isuppli.com/news/xbox/
Short quote:
Factoring in costs for the hard disk, the DVD drive, enclosures, the Radio Frequency (RF) receiver board, power supply, wireless controller, cables, literature, and packaging – the total BOM cost for the Xbox 360 Premium reaches $525, well above the retail price of $399.
HAPPY THANKSGIVING . . . yes, life is more than Rambus.
RMBS IP & Xbox
I haven't had an opportunity to listen to the analyst conference and may not have time for a few days - apparently it is worth focused attention?
I am checking in to find out if there was any mention of Xbox?
That limb I climged out on . . . dead wood or did ThreeJack rename it dead money?
<Out on a limb you are if you are thinking Rambus will announce Microsoft or any MM bought a Rambus license . . .>
***
Now, now. You are stretching it a bit. I didn't climb out on the "bought" limb!
Maybe "we have had discussions."
More likely, "we need to have discussions."
Most likely, a simple statement "we are not prepared to comment on if we believe Xbox contains Rambus IP."
I am on the limb that Rambus will make a comment about Xbox & Rambus IP.
Might be dead wood - not to be confused with dead money!
<Reading the other boards, seems folks are expecting Rambus to make some announcement at the Analyst Meeting tomorrow and Mr. Hughes at his CNBC appearance as well. Frankly, I doubt it.>
***
Okay, I will climb out on the limb - I am expecting some comment about Xbox. IP other than Cal suggested? I too doubt it.
If RMBS cares about its investors, it will comment.
I did contact Microsoft and well, no answer, but at least I felt like they cared.
<I give it less than 5% probability that there's additional Rambus IP in XBOX 360 other than GDDR3 and the controller.>
****
Thank you for the reply.
<Cal when will we know if XBOX uses Rambus IP?
****
Whyte's ruling in the coming week(s) is pivotal. After that comes the infringement trial. Barring further delays and appeals, we should know by spring time.>
****
Any reason why information could not be provided during the analyst conference this week? I am referring to the partial cell in Xbox.
Is your expectation of a wait until spring in reference to IP other than the partial cell?
Respectfully.
Thanks for the light reading!
Do you contribute to wikipedia?
Honestly, I do not know.
Old English - trEowth. I have been told it sounds like "tr (long e) oth".
I simply slaughter it and call my blog "truth".
Here is a link to a post from a few days ago by Chris King - I don't know him - about "Truth Challenged." A comment follows the post by a reader who traces the etymology of "truth".
http://www.burlingtonontrack.com/blog/_archives/2005/10/23/1317964.html
I agree with you.
My recollection of my impression (don't have notes with me) from Karp's testimony was that Rambus didn't actually know if SDRAM infringed. The "stealth mode" board memo outlined a plan to reverse engineer to obtain evidence - that had not occurred at the time the DRP was being discussed and put in place.
JW does have his work cut out for him and he is very capable.
My hope is that JW will require more than mere document destruction in anticipation of litigation. Perhaps a Palsgraf-like limitation . . .
Anticipation lying alone is as barren as an old maid - it is simply an unworkable test.
<Stone gets back to the issue of likely litigation. The probability gets likely when it reaches 51%. In the time period Hynix claims Rambus was preparing for litigation these conditions existed:
1. No issued patents
2. No products that infringe
3. did not want to alienate the customer
It wasn’t until Oct ’99 that R went over the threshold.
BTW, I don’t understand how they say no products infringe. What about SDRAM?>
***
Cal, Maybe this is a partial answer ...
It is the order of existing conditions. I believe that it wasn't necessarily whether SDRAM infringed, it was a timing issue. Rambus didn't want to "rock the boat" before RDRAM was close to a point of no-return.
I pulled this from Treowth: (Karp's testimony)
"As part of the March '98 Board of Directors meeting, Mr. Karp also presented the "stealth mode" schedule. Frankly, this portion either standing alone or in context added weight to the argument RMBS - Mr. Karp, et al. - had seriously traversed the philosophical path of litigation "battle readiness." First the schedule, then my comments:
1. Don't contact any MM's until after RDRAM samples have been obtained.
2. Obtain CS or customer samples of MM parts that may be infringing non-compatible IP. This would be month "0".
3. Reverse engineer the sample parts. 1-2 months.
4. If infringing, write a letter to the MM and hold 1st meeting. 2-3 months.
5. 2nd meeting. 3-4 months.
6. Commence litigation.4-6 months.
http://treowth.blogspot.com/2005/10/hynix-v-rambus-108105-part-v.html
<I highly recommend going to a trial (if we have any more )>
>
I agree.
It is better than television.
Legal teams fighting over maybe a billion dollars are sitting nearly on top of each other as they run their game plans. They hold the doors for each other, smile and engage in small talk.
Fans can keep track of things on a personal level. For example, following lawyers into restrooms and well, err, drawing their own conclusions about who is "feeling well" about things. (My daughter would say "too much information")
Judge Whyte is a judge in the mold you were taught in elementary school. He is respectful, thoughtful and doesn't pretend to be omniscient.
<Management By Consensus sounds like "spread the risk" of decision-making to me. Why on earth would the BoD compensate Mr. Tate with 5MM shares and options if he wasn't the driver behind the early success of Rambus? In fairness, he did arrange the Intel deal at a critical juncture, and did manage to retain key employees during the worst of it for Rambus. Maybe EEs are hard to manage. Like a herd.>
**********
I don't know why Roberts volunteered the "consensus" tidbit. He was testifying about the weekly executive meetings. He did make a comment about how Tate made the ultimate decisions, but it left an impression with me that there weren't many ultimate decisions to be made. That may not be an accurate read on my part.
A herd of cats?
Roberts seemed like a nice guy. He left Rambus in early '99. I don't know why he left. Maybe personal reasons. He testified that during his time at RMBS he had 1.8M shares and now 100k-200K left. Likely doesn't need to work except for his sanity. He is invovled with a high-tech photography business now and is taking some math classes.
One other thing, Roberts testified that early on RMBS was concerned that unlicensed parties might produce products that were not compatible with the specs, so RMBS wanted to get licensees in place to prevent what was apparently more a quality control concern.
Calbiker . . just a couple extra thoughts . . .
I chuckled (as did most of those in attendance)when Mr. Rhoades offered to shred (when this is all over) the binders he handed Mr. Stone.
Nicely noted that 85-87% of his business is regularly scheduled business, that is service to customers on a weekly, monthly or quarterly schedule of schredding.
Re: Moniz
All prior art was disclosed to PTO on the Information Disclosure Statements.
When asked by Nissly how many times he had practiced his testimony, Moniz stated that he had reviewed the line of questions two times . . . that hung in the air.
(I was sitting in the back row a couple places to TDOX's left.)
If I may respectfully add . .
Re: Roberts
Not sure about the date of Robert's email. My notes indicate that Robert's was employeed by RMBS 2/91 - 2 or 3/99. I think you meant March '98.
In '96 RMBS had 120-130 employees. All but about 20 reported to Roberts. Non-reporters included, business development, accounting and personnel.
RMBS executives held a weekly meeting - usually Monday morning. Tate largely ran a consensus based company.
Roberts also involved in budgeting. Items $10K were budgeted. A $15-$20M item would be budgeted. An apparent reference to litigation expense.
Threejack:
Humor?
Simply attempting to be accurate.
:)
Any Donkey
Sandy:
Would you like to post that as guest editorial on treowth?
treowth
Thank you.
I consider the comparison to Threejack a very nice compliment.
Thank you for reading.
Treowth