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Glad to have good news to start the New Year--hope 2007 is a fine one for Rambus longs!
Rambus press release:
Rambus Technology Is Adopted in PLAYSTATION(R)3 Computer Entertainment System
Wednesday November 29, 6:00 pm ET
XDR(TM) and FlexIO(TM) Interface Solutions Deliver Unprecedented Performance in Latest Computer Entertainment System
TOKYO--(BUSINESS WIRE)--Consumer devices are setting the pace for innovation in digital electronics. Rising consumer demands for richer graphics, stunning visuals and real-world physics require technology at the leading-edge. At Rambus (NASDAQ:RMBS - News), this type of innovation is a core competence, and today Rambus is proud to announce that its XDR(TM) memory and FlexIO(TM) processor bus interface technologies are featured in the PLAYSTATION®3 (PS3(TM)) computer entertainment system.
"The Rambus XDR memory and FlexIO interfaces are integral to enhancing the overall system performance for PS3," said Izumi Kawanishi, corporate executive of Sony Computer Entertainment Inc. "Rambus engineers and project managers have given us confidence throughout the development program and enabled us to deliver the most advanced computer entertainment system in the world."
Designed from the ground up for breakthrough performance, the PS3 computer entertainment system employs four XDR DRAM devices, providing 256MB of memory capacity. The Rambus XDR memory interface and FlexIO processor bus account for 90% of the Cell Broadband Engine(TM) signal pins, enabling an unprecedented aggregate bandwidth of over 65 gigabytes-per-second in PS3.
The Rambus XDR memory interface connecting to XDR DRAMs achieves data rates of 3.2GHz to 8.0GHz. FlexIO processor buses are capable of running up to 8.0GHz data rates, providing bandwidth more than four times faster than best-of-class processor buses available today. Clock signals to the XDR DRAMs are provided by Rambus XCG clock generators.
"We are honored to have worked with Sony Computer Entertainment on this project for the last three years and are excited to see PS3 launch to tremendous acclaim," said Harold Hughes, president and chief executive officer at Rambus. "PS3 is by far the most advanced system on the market today, capable of extremely rich and compelling graphics, bringing us closer to real-life images."
Rambus high-speed interfaces are developed as complete solutions for high-volume, low-cost systems. For more information on the XDR memory architecture consisting of the XDR DRAM device, the XCG (XDR Clock Generator), the XIO controller interface cell, and the XDR memory controller (XMC), as well as the next generation of XDR, the 8GHz XDR2 DRAM with micro-threading, please visit www.rambus.com/xdr.
About Rambus Inc.
Rambus is one of the world's premier technology licensing companies specializing in the invention and design of high-speed chip interfaces. Since its founding in 1990, the Company's patented innovations, breakthrough technologies and renowned integration expertise have helped industry-leading chip and system companies bring superior products to market. Rambus' technology and products solve customers' most complex chip and system-level interface challenges enabling unprecedented performance in computing, communications and consumer electronics applications. Rambus licenses both its world-class patent portfolio as well as its family of leadership and industry-standard interface products. Headquartered in Los Altos, California, Rambus has regional offices in North Carolina, India, Germany, Japan, Korea and Taiwan. Additional information is available at www.rambus.com.
PLAYSTATION is a registered trademark of Sony Computer Entertainment Inc. PS3 and Cell Broadband Engine are trademarks of the same company.
Good to see Rambus having a lively day! Thanks to Threejack and lolo for providing useful information during the recent doldrums.
Press Release
Release Source: Rambus Inc.
Rambus Provides Update Regarding Independent Stock Option Review
Thursday October 19, 4:05 pm ET
Announces Formation of Special Litigation Committee
LOS ALTOS, Calif.--(BUSINESS WIRE)--Rambus Inc. (NASDAQ:RMBS - News) today announced that the Audit Committee of its Board of Directors has reported to the full Board of Directors its findings in connection with its independent investigation into historical stock option grants. The Audit Committee examined over 200 stock option granting actions from the time of Rambus' initial public offering through the commencement of the investigation in late May 2006. The Audit Committee has determined that a significant number of the stock option grants were not correctly dated or accounted for. The vast majority of incorrectly dated grants, both in terms of number of shares of common stock and financial accounting impact, occurred between 1998 and 2001. Rambus preliminarily estimates that the aggregate pre-tax, non-cash stock-based compensation charges in connection with these stock option grants will be in excess of $200 million. Rambus' management will continue the work necessary to determine the precise accounting impact of the findings of the investigation and to complete the necessary restatements of Rambus' prior financial reports. Rambus will continue to work closely with Rambus' independent accountants in its restatements. The Board of Directors of Rambus has appointed a Special Litigation Committee to evaluate potential claims or other actions arising from the stock option granting activities. The Board of Directors and management of Rambus will continue to work with appropriate legal and accounting advisors to develop recommendations and to implement remedial measures to ensure that proper procedures are followed with respect to awards of equity compensation.
Background Leading to the Investigation
Earlier this year, an academic study and numerous subsequent press reports began to publicize the likely widespread occurrence of accounting and corporate governance irregularities with respect to the granting of stock options and other equity awards at over 100 companies, many in the high-tech sector. As a result, in late May 2006, Rambus conducted an initial review which discovered apparent irregularities in past stock option grants. Management reported its findings to the Audit Committee and the full Board of Directors.
Commencement of Independent Investigation
On May 30, 2006, Rambus announced the commencement of the Audit Committee's internal investigation of the timing of stock option grant practices and related accounting issues. Each of the directors on the audit committee had joined the Rambus Board of Directors and Audit Committee after January 1, 2005.
The Audit Committee retained Heller Ehrman LLP as independent legal counsel, and Heller Ehrman LLP engaged the outside accounting firm of Ernst & Young LLP to assist in the investigation.
Results of the Investigation to Date
The independent investigation has taken over four months and consisted of a review of over 200 stock option granting actions. The review encompassed over 1.5 million emails and other documents, and over 50 interviews with executive officers, directors, employees and advisors.
On June 27, 2006, Rambus announced that the Audit Committee had reached a preliminary conclusion that the actual measurement dates for certain stock option grants issued in prior years differ from the recorded grant dates for such awards.
On July 19, 2006, Rambus announced that as a result of the independent investigation, it expected to restate its previously issued financial statements to correct errors related to accounting for stock-based compensation expenses, and that non-cash stock-based compensation expenses should have been recorded with respect to those stock option grants in an amount that was material.
On August 15, 2006, Rambus announced the resignation of Geoff Tate, former Chief Executive Officer of Rambus from 1990 through 2005, from its Board of Directors. Mr. Tate was Chief Executive Officer and the sole member of the Stock Option Committee during the period that the Audit Committee had preliminarily concluded that the majority of stock option irregularities occurred.
On October 17, 2006, the Audit Committee completed its findings with respect to the pricing of Rambus' stock option grants. The Audit Committee presented its findings to the Board of Directors on October 18, 2006. As indicated above, the Audit Committee has determined that a significant number of Rambus stock option grants were not correctly dated and accounted for, with the vast majority of incorrectly dated grants occurring between 1998 and 2001. Virtually all of the incorrectly dated stock option grants fit into three categories:
Between 1998 and 2001, a substantial number of stock options were granted by Rambus for which the appropriate measurement dates differ from the recorded grant dates. The majority of the non-cash compensation expense associated with Rambus' financial restatement will relate to grants on five dates within this time period.
In addition, the Audit Committee found that during the period from 1999 through 2003, Rambus had a regular practice for grants to new hire non-executive employees of selecting the lowest price of the quarter between the employee's start date and the end of the quarter. On certain occasions, individual employees had a formal employment start date which preceded the date on which they actually began working for Rambus. The result of this practice was that an employee would receive the new hire grant at a grant price that was lower than the price of the stock on the employee's actual start date.
Rambus also had three stock option grants during 2003 and 2004 for which the price was set on the same date as a Board of Directors or Compensation Committee meeting date at which a pool of stock options was discussed, but the individual allocations of the stock option pool had not been completed as of the date of those meetings and, consequently, Rambus recorded an incorrect measurement date for those grants.
The results of the investigation confirm the Audit Committee's previous conclusion that Rambus' financial statements for the fiscal years 2003, 2004, 2005, the Quarterly Reports on Form 10-Q filed with respect to each of these fiscal years and the financial statements included in Rambus' Quarterly Report on Form 10-Q for the first quarter of fiscal year 2006, should no longer be relied upon and will be restated. Rambus' management will continue to work to determine the precise accounting impact of the findings of the investigation and to complete the necessary restatements to Rambus' prior financial reports. Rambus will continue to work closely with Rambus' independent accountants in its restatements. Rambus preliminarily estimates that the aggregate pre-tax, non-cash stock-based compensation charges in connection with these stock option grants will be in excess of $200 million. Also as a result of the investigation, Rambus has been unable to file its quarterly report on Form 10-Q for the period ended June 30, 2006, and will not be in a position to file its quarterly report on Form 10-Q for the period ended September 30, 2006 (which is due to be filed with the Securities and Exchange Commission (the "SEC") on November 9, 2006).
Rambus has not yet determined the tax consequences that may result from these matters or whether tax consequences will give rise to monetary liabilities which may have to be satisfied in any future period.
Rambus will make every effort to file its restated financial statements and its delinquent quarterly reports as soon as practicable after the completion of accounting, tax and legal analyses required as a result of the investigation.
Additionally, Rambus is evaluating Management's Report on Internal Control Over Financial Reporting set forth in Rambus' 2005 Annual Report. Although Rambus has not yet completed its analysis, the results of the investigation confirm Rambus' determination that it is likely that Rambus had a material weakness in internal control over financial reporting as of December 31, 2005.
The results of the independent investigation showed that improvements are needed in Rambus' processes for the granting of equity compensation. The Audit Committee is working with the Board of Directors, the Compensation Committee and management to implement improvements in Rambus' processes and controls over its stock administration programs.
Given the recent employment of Harold Hughes, Chief Executive Officer and President of Rambus since January 2005, and Satish Rishi, Senior Vice President, Finance, and Chief Financial Officer since April 2006, the Board of Directors and Audit Committee acknowledged that they have full faith in the integrity of Messrs. Hughes and Rishi, and that the findings of the investigation do not implicate them in any misconduct.
Special Litigation Committee
The Audit Committee has recommended, and the Board of Directors has approved, the formation of a Special Litigation Committee to evaluate potential claims or other actions arising from the stock option granting activities. The Board of Directors has appointed J. Thomas Bentley, Chairman of the Audit Committee, and Abraham Sofaer, a retired federal judge and Chairman of the Legal Affairs Committee, both of whom joined the Rambus Board of Directors in 2005, to comprise the Special Litigation Committee. Rambus has confirmed that Messrs. Bentley and Sofaer are disinterested directors for the purpose of the Special Litigation Committee and they are not believed to have past or present business dealings with Rambus or any potential subjects of the investigation that would impair their ability to act independently and in good faith.
Other Impacts of the Investigation
While Rambus cannot predict with certainty the impact of the investigation findings, the following are certain material implications of the investigation.
Potential Delisting from NASDAQ
Rambus previously announced that it had received a NASDAQ Staff Determination notice stating that it is not in compliance with Nasdaq Marketplace Rule 4310(c)(14) as a result of being delinquent in its SEC filings, and is subject to potential delisting. Rambus requested and met with the Listings Qualification Panel of The NASDAQ Stock Market on September 21, 2006, to request continued listing. Rambus has not yet received confirmation from the Listings Qualification Panel that its request for an extension to December 19, 2006 has been granted. There can be no assurance that the hearing panel will grant Rambus' request for continued listing. Pending a decision by the Listings Qualification Panel, Rambus' common stock will remain listed on The NASDAQ Stock Market.
Purported Default and Potential Acceleration of Convertible Notes
Rambus previously announced that on September 8, 2006, it received a notice of purported defaults from the trustee under the indenture governing the Rambus Zero Coupon Convertible Senior Notes due February 1, 2010 (the "Notes"). The notice asserted that because Rambus was delinquent in its SEC filings, it was in default under the indenture governing the Notes, and such default would ripen into an "Event of Default," as defined in the indenture, on or about October 17, 2006. While Rambus has questioned the legal theories as to whether it was in default under the terms of the indenture, if an "Event of Default" were to occur, the trustee or holders of at least 25% in aggregate principal amount of the Notes then outstanding would have the contractual right to declare all unpaid principal, and any default or additional interest on the Notes then outstanding to be due and payable. If an "Event of Default" were to occur, the noteholders would have a right to accelerate and receive the $160.0 million aggregate principal amount outstanding under the notes, plus any interest which may have accrued. Rambus believes that, if an Event of Default were to occur and the Notes were accelerated, it has adequate financial resources to pay any unpaid principal, and any interest due on the Notes. Rambus is evaluating its options with respect to the Notes.
Legal Proceedings and Regulatory Action
Rambus is aware of several shareholder derivative actions that were filed in state and federal courts against certain officers and directors of Rambus related to the stock option granting actions under investigation. The actions were brought by persons identifying themselves as shareholders and purporting to act on behalf of Rambus. Rambus is named solely as a nominal defendant against which the plaintiffs seek no recovery. The complaints allege that certain of the officers and directors of Rambus violated securities laws and/or breached their fiduciary duties to Rambus and obtained unjust enrichment in connection with grants of stock options to certain officers of Rambus that were allegedly backdated. The complaints seek unspecified monetary damages and disgorgement from the defendants, as well as unspecified equitable relief.
Rambus is additionally aware of several purported securities fraud class actions filed in federal court against Rambus and certain of its officers and directors. The complaints generally allege that the defendants violated the federal securities laws by filing documents with the SEC containing false statements regarding Rambus' accounting treatment of the stock option granting actions under investigation. The complaints seek unspecified monetary relief from the defendants.
Upon completion of the independent investigation, Rambus expects to present the results of the investigation to the staff of the SEC and other government authorities, such as the United States Attorney's Office for the Northern District of California. Such government agencies will likely review such findings and may commence inquiries of their own. Any such inquiries could lead to further investigations and government action, such as fines or injunctions. At this time, Rambus cannot predict what, if any, government actions may result from the completion of the independent investigation of stock option grants. Rambus will continue to cooperate with the appropriate government authorities regarding the investigation.
Rambus, FTC Clash Over Monopoly Ruling
By Colleen Taylor -- 9/22/2006
Electronic News
The U.S. Federal Trade Commission (FTC) is not through with memory technology licensor Rambus Inc. yet. The FTC is now lobbying to bar Rambus from enforcing its pre-1996 patents with respect to JEDEC-compliant products.
After ruling last month that Rambus monopolized four computer memory technologies used in DRAM chips, the FTC "must now restore competition to the conditions that would have prevailed absent Rambus's anticompetitive conduct," the commission said in a public docket filed this week. This remedy purports to restore the competitive conditions that should have existed had Rambus not monopolized the market.
Had it not engaged in deception, the FTC argued, Rambus likely would have received minimal or no royalties from companies practicing the JEDEC standards. "To replicate this competitive world, the appropriate remedy is an order enjoining Rambus from enforcing its patents against devices complying with JEDEC standards and products incorporating such devices," the FTC said in its briefing.
The FTC offered additional proposals for how Rambus could pay its dues. The brief also says that the competition could be restored by instituting a maximum royalty rate onto the company of 0.25 percent for SDRAM, DDR SDRAM and DDR2 SDRAMs. The FTC said, however, that this remedy is inferior to enjoining Rambus from enforcing the patents.
Rambus has its own opinions on an appropriate remedy. In a brief filed with the FTC on Sept. 15, Rambus, maintaining that the FTC erred in last month's ruling in the first place, said it opposed any remedy that would "affirmatively alter current market conditions."
If a market-altering remedy, such as the restriction of royalty rates is deemed necessary by the FTC, Rambus said it should do so only in the markets that Rambus was found to have unlawfully monopolized -- the markets for latency, burst length, data acceleration and clock synchronization technology used in JEDEC-compliant SDRAM and DDR SDRAM devices. Rambus asserted that the company should be allowed to charge more than 2.5 percent royalties in both SDRAM and DDR SDRAM.
No decision has yet been made on the remedy.
© 2006, Reed Business Information, a division of Reed Elsevier Inc. All Right
Sounds like a film directed by Oliver Stone....
From the Inquirer....
What if Intel Penryn uses Rambus XDR, eh?
If so, Rambus is baaaaack.....
By Charlie Demerjian: Thursday 14 September 2006, 13:48
ONE OF THE best kept secrets in the industry is what special sauce Intel will put in Penryn, the 45 nanometre shrink of Merom.
While that is a story for another day, it's rumoured that the big change is not in the chip, but in the chipset, or one variant of it. The speculation is running that there will be versions for the server and desktop that use Rambus XDR memory.
Let me be the first to say that if this is true, it is about #(*&$# time someone used this memory for something useful, on paper anyway, it looks to be the 'better way'.
On a more strategic level, perhaps Intel dummied AMD and Sun to commit to FBD and DDR3 just about the time Intel dumps it.
Again, it's speculation, but if it's true it's real devious guys, pat yourself on the back. µ
http://www.theinquirer.net/default.aspx?article=34383
Threejack, Thanks as always for all the information you provide for this thread....
Sun, Unisys file joint suit against Hynix
Tuesday September 5, 3:36 pm ET
Sun Microsystems Inc. and Unisys Corp. have jointly filed suit against Hynix Semiconductor Inc., apparently in connection with a federal probe into alleged price-fixing of memory chips, Hynix said Tuesday.
The South Korea company said in a disclosure to South Korea's Financial Supervisory Service that the suit was filed in U.S. District Court for the Northern District of California on Friday.
Hynix was one of four companies that pleaded guilty to felony price-fixing charges from 1999 through 2002, and agreed to pay a $185 million fine.
Santa Clara-based Sun (NASDAQ:SUNW - News) makes servers and software. Blue Bell, Pa.-based Unisys is a technology services and computer hardware company.
Published September 5, 2006 by the Silicon Valley/San Jose Business Journal
AmTech Research initiated coverage with a "BUY." We all deserve a good day today!
I've been away at the beach for August (thank goodness, given what's happened to Rambus) and I know this is an odd note to chime back in with, but I thought everyone knew about the Uncle Remus folk stories. Lolo is an American Studies scholar in addition to other virtues, it seems.
From WR Hambrecht:
Coverage: Research
Rambus, Inc. (rmbs)
07.18.06
rmbs: JUDGE REDUCES DAMAGES TO RAMBUS; TIME TO SIT BACK AND WAIT - DOWNGRADING RATING TO HOLD FROM BUY
Yesterday, the judge in the Hynix trial cut the damage award to Rambus from $306M to $133M. The original $306M in award damages was given to Rambus following a three week trial in April in which the jury found Hynix infringed on eight of Rambus' patents. Overall, we find this ruling surprising and very negative for the following reasons: 1) Judge Whyte has been very positive to Rambus and the fact that he has reduced the award damages so significantly signals to us that he believes the royalty rate should be much lower; and 2) Judge Whyte has decided to continue with phase 3 of the trial in which Hynix claims that Rambus, as part of attending the JEDEC panel, discussed standards that it later turned into patents. This will likely lead to a further delay in settlement talks. Our major thesis in the past few months since the Hynix win is that Rambus will likely be able to collect potential damages north of $1.1B basing it on $306M in damages from Hynix, and now with yesterday's ruling which opens the door for a longer process for appeal, we now believe it is unlikely that Rambus will be able to collect such an amount in the near future. In addition, with the timeline of phase 3 of the trial and opening the door for an appeal, it is unlikely we are to see a resolution on the patent cases with the DRAM makers before we reach the price fixing case, which will be in San Francisco in H1:07. While the company's business continues to track well, we believe that the combination of the options issue the company is facing, the lack of positive potential catalysts in the near future and the potential delay, in our opinion, of any settlement with the DRAM companies leaves us less bullish on the stock at this time. Therefore, we are downgrading our rating on RMBS shares from a Buy to a Hold and recommend investors to wait for better visibility into the price fixing case in H1:07. Full Report - PDF
Press Release Source: Rambus Inc.
Rambus Appoints Penny Herscher to Its Board of Directors
Friday July 14, 4:30 pm ET
LOS ALTOS, Calif.--(BUSINESS WIRE)--July 14, 2006--Rambus Inc. (NASDAQ:RMBS - News), one of the world's premier technology licensing companies specializing in high-speed chip interfaces, today announced the appointment of Ms. Penelope A. Herscher as an independent director to its board. Ms. Herscher was also appointed to the Compensation Committee of the Rambus board of directors.
"Penny's demonstrated business and marketing leadership make her an ideal addition to our board," said Kevin Kennedy, chairman of the Rambus board of directors. "Her unique insights and experience strongly complement our goal of delivering exceptional value to Rambus' industry-leading semiconductor and system customers."
Ms. Herscher currently serves as president and chief executive officer of firstRain, a custom-configured, on-demand intelligence services firm for professionals in the financial-services, pharmaceutical, and high-tech industries. Prior to joining firstRain, Ms. Herscher held the position of executive vice president and chief marketing officer at Cadence Design Systems. From 1996 to 2002, Ms. Herscher was president and chief executive officer of Simplex Solutions, which was acquired by Cadence in 2002. Before Simplex, she was an executive at Synopsys for eight years and started her career as an R&D engineer with Texas Instruments.
Ms. Herscher serves on the boards of firstRain, the Anita Borg Institute and California Community Partners for Youth. She holds a bachelor's degree with honors in mathematics from Cambridge University in England.
Infineon, Six Chip Makers Face Price-Fixing Suit by 34 States
July 13 (Bloomberg) -- California and 33 other states plan to file a price-fixing lawsuit seeking ``hundreds of millions of dollars'' from Infineon Technologies AG, Hynix Semiconductor Inc., and five other computer memory-chip makers.
The lawsuit, to be filed tomorrow in San Francisco federal court, claims consumers and state governments overpaid for computers, servers and other electronic products from 1998 to 2002 because the chip makers artificially inflated prices. Samsung Electronics Co., the No. 1 memory-chip maker, won't be sued ``to foster a potential settlement,'', said Tom Dressler, a spokesman for California Attorney General Bill Lockyer.
``The defendants in this case conspired to rig the market for this essential computer product, working together to keep prices artificially high,'' Lockyer said today in a statement, which didn't identify the 33 other states. ``They victimized individual consumers, governmental agencies, schools and taxpayers.''
The lawsuit opens a new chapter of antitrust claims against memory-chip makers, which have been fined $731 million in a four- year-old U.S. probe. The states are seeking reimbursement for the overcharges, which Lockyer estimated at ``hundreds of millions of dollars'' nationwide. Antitrust law allows plaintiffs to seek triple-damages.
The complaint will name Infineon, Hynix and Boise, Idaho- based Micron Technology Inc., the world's second, third and fourth-largest computer memory-chip makers, as well as No. 5 Elpida Memory Inc., No. 6 Nanya Technology Corp., NEC Electronics America Inc. and Mosel Vitelic Inc. Micron is the biggest memory- chip maker in the U.S.
Conspired
Lockyer said that the companies conspired to limit chip supplies and agreed on what to charge customers in an effort to artificially drive up prices.
The lawsuit grew out of a global price fixing conspiracy investigation by the U.S. Justice Department. Suwon, South Korea- based Samsung, Ichon, South Korea-based Hynix, Neubiberg, Germany-based Infineon, Tokyo-based Elpida and 12 individuals have pleaded guilty and paid $731 million in fines in that probe.
U.S. prosecutors have said the leading victims of the conspiracy include computer makers such as Dell Inc., Hewlett- Packard Co. and International Business Machines Corp., which use dynamic random access memory, or DRAM, chips, in their products. U.S. sales of DRAM chips total $5 billion annually, Lockyer said.
Samsung, Hynix, Micron and other chip companies face similar claims in a civil lawsuit pending in San Francisco federal court on behalf of companies representing computer-repair shops and manufacturers that purchased chips from 1999 to 2002.
Samsung, Hynix and Micron agreed to pay $160 million in May to resolve claims in those suits.
To contact the reporter on this story:
Karen Gullo in San Francisco at kgullo@bloomberg.net.
Last Updated: July 13, 2006 13:07 EDT
News from the Court II from Infingeon at Yahoo:
Hynix essentially agrees with all of Rambus arguments in the bench trial motion but argues for a jury trial to recover litigation damages caused by "Rambus tortious conduct".
Hynix says it is just not fair to give Rambus an infingement trial and then give Hynix a bench trial.
Rambus argues that Hynix has already waived damages and it is too late for them to change
and that the evidence cutoff date for disclosure of damages has long since past. Rules 26 (a) and 37 bar the introduction of any damages evidence at this time. Such evidence would be lawyers bills.
This is a very weak argument in light of the Noerr Pennington ruling which says that Rambus had a right to sue Hynix. (2188)
Under the "American Rule" each side pays their own costs of litigation.
Gentlemen, it looks like we have a bench trial.
Prtrial Case management is August 3 and a final pretrial will be August 17, 2006.
The trial is on August 21, 2006.
From Infringeon at Yahoo:
Good Morning,
Rambus and Micron have agreed to private non-binding mediation to resolve their court disputes (CV-0244) as July 6 2006.
This is the first serious attempt at settlement by Micron and follows upon thier takeover of Lexar.
From Briefing.com
9:33AM Rambus extends recent upward momentum, edging above its 200-day simple ma at 25.16 (RMBS) 25.30 +1.00 : The 200-day ema lies above near 26.17.
"but they seem to prefer obsequious in my observations."
Okay, I'll be quiet from now on, but this is just great fun....
Thanks for this amusing & informative post....
DJ UPDATE: Rambus Dn; May Restate Fincls On Options Grants
Dow Jones Real-Time News for Investors
2:40 p.m. 06/28/2006
NEW YORK (Dow Jones)--Shares of Rambus Technology Inc. (RMBS) fell 12% Wednesday after the developer of computer-memory technology disclosed late Tuesday that improperly dated stock-option grants may lead to a restatement of prior financial results.
Rambus, Los Altos, Calif., said it may need to book noncash charges and restate results for prior periods because of possible discrepancies between actual and recorded dates for stock-option grants. Any stock-based compensation charges would decrease reported net income or widen net loss, the company warned.
Shares of Rambus recently traded at $20.78, down $2.36, or 10.2%, on volume of 12.8 million, compared with average daily volume of 5.8 million.
"The reaction is probably...a little too extreme considering that we still don't have the information, and we don't know whether they are restating one year or five years," said WR Hambrecht & Co. analyst Daniel Amir, who doesn't own any shares or have any banking conflicts and rates the issue a "buy."
Amir noted that - unlike at some other companies tainted by stock-option timing investigations - there would almost certainly not be senior management upheaval at Rambus, because the chief executive was appointed only about eighteen months ago and the chief financial officer arrived in April.
For Rambus' business outlook, Amir said a settlement with Hynix Semiconductor (000660.SE) over a patent dispute looked likely. Such an outcome would help the company's case with other major makers of memory chips. Rambus holds a wide range of patents for engineering advances it has pioneered for memory chips and other technology and makes money by licensing technology to manufacturers.
The Wall Street Journal reported that the wording of Rambus' stock-option announcement and the indication of possible accounting charges suggests the options were timed in a way that benefited insiders by giving them a lower exercise price. If the grants were backdated to a day when the company's stock price was lower, that would make them more valuable to the recipients.
In late May, Rambus said its board-audit committee commenced an internal probe into the timing of past option grants. The committee said it would focus primarily on options issued in or before 2003.
A wide range of companies have been caught in the dragnet of stock-option backdating investigations. Late Tuesday, for example, several companies announced federal inquiries into options practices.
Among those companies, semiconductor company Applied Micro Circuits Inc. (AMCC) stock recently traded down 6.5% at $2.44; Internet concern CNET Networks (CNET) fell 4.5% to $8.15.
-By Rob Curran, Dow Jones Newswires; 201-938-5176; robert.curran@dowjones.com
Our beloved FTC at Work....
FTC laptops stolen
WASHINGTON (Reuters) - The Federal Trade Commission, responsible for protecting Americans from fraud and identity theft, reported on Thursday the theft of two of its own computers with personal information about 110 people.
The FTC laptops belonged to staff attorneys who were using them to prepare an enforcement lawsuit, said Betsy Broder, the FTC assistant director for privacy and identity protection.
The computers, which were password-protected, contained names, addresses, Social Security numbers and some financial account numbers. The laptops were stolen from a locked vehicle last week.
"We wish this hadn't happened," Broder said. "No data security is perfect and we're going to use this as a way to improve our practices and security."
The FTC sent letters to the 110 individuals notifying them of the theft and offering one year of free credit monitoring.
The FTC is developing a new laptop computer security policy that would require an employee to remove any personal identifying information in the machine before it leaves an agency office. If the personal data was needed for an investigation, an FTC manager would have to approve allowing the laptop to leave the building, Broder said.
The current National Law Journal has an article titled "WINNING:
Successful strategies from 10 of the nation's top litigators." Stone is one of the 10 attorneys featured, with a very interesting article about the San Jose trial (Science's Human Face).
Rambus wasn't alone today....
AP
Semiconductor Stocks Slip
Thursday June 8, 3:56 pm ET
Chip Stocks Slip; Investors Fear Price War Between Intel and AMD
NEW YORK (AP) -- Although the semiconductor industry is expected to benefit handsomely from cell phone sales in the second half of the year, chips stocks fell sharply lower Thursday as investors seemed more concerned about a potential price war between two key microprocessor makers.
The carnage was fairly dramatic across the sector through mid-afternoon. Graphics chip maker Nvidia Corp. and ATI Technologies Inc. shares were pounded especially hard; Nvidia shares were down $1, or 4.5 percent, to $20.82 on the Nasdaq, and ATI shares were down 85 cents, or 5.5 percent, at $14.73 on the Nasdaq.
But just before the closing bell, both stocks had mounted a recovery. Nvidia shares were down 48 cents, or 2.2 percent, at $21.34, while ATI shares were 17 cents lower at $15.41.
On Wednesday JMP Securities analyst Krishna Shankar dismissed notions that Intel or AMD could acquire either ATI or Nvidia.
"We believe that Intel or AMD is unlikely to merge with graphics chip vendors ATI Technologies and Nvidia for several reasons, including Intel's preoccupation with its own company-wide restructuring efforts and AMD's need to have a vendor-neutral stance on graphics co-processors for strategic partnerships," Shankar wrote in a note.
Advanced Micro Devices Inc. took one of the biggest hits of the bunch, too, dropping nearly 5 percent, or $1.37, to $26.63 in morning trading on the New York Stock Exchange. Later in the session, shares recouped some of earlier losses and were down only 86 cents, or 3.1 percent, to $27.14.
AMD suffered at the hands of a few analysts who predicted the company's profits may be nipped by a price war with rival chip maker Intel Corp.
Intel shares set a new 52-week low of $17.09 in morning trading, and in late afternoon trading were down a relatively modest 29 cents at $17.10. In Wednesday's trading, the stock set a new three-year low of $17.33.
The market was kinder to flash memory semiconductor stocks -- but not much kinder. Shares of SanDisk Corp. were down 4.5 percent earlier in the session, but regained some ground by mid-afternoon, and were most recently trading down 49 cents $52.60. Micron Technology shares were down 34 cents, or 2.2 percent, at $15.48 on the New York Stock Exchange.
Even wireless chip stocks were down. Texas Instruments Inc., which is scheduled to deliver its mid-quarter update after market close, was down 11 cents at $30.61 on the New York Stock Exchange. Texas Instruments supplies chips used in cell phones, which the Semiconductor Industry Association said yesterday was a driving force behind the group's boosted sales outlook for the year.
Freescale Semiconductor Inc. shares slipped 18 cents to $28.58 in afternoon trading on the Big Board, but recovered and were up 7 cents from their opening price at $28.83 late in the session.
Qualcomm Inc. shares slipped nearly 5 percent earlier in the session, but by late afternoon they were down 80 cents at $44.68 on the Nasdaq, despite ThinkEquity analyst Mike Burton's comments that the company's fundamentals are strong and that it has a "an enviable position with its large intellectual property portfolio."
National Semiconductor Corp., which is scheduled to release fourth-quarter results after the bell, saw shares fall 17 cents to $23.98 on the NYSE.
Semiconductor-producing equipment makers such ASM International NV and Kulicke & Soffa Industries Inc. also got the shaft. Shares of Kulicke & Soffa were down 77 cents, or 9.2 percent, at $7.53 on the Nasdaq, while ASM International shares were down 35 cents, or 2.2 percent, at $15.56 on the Nasdaq.
The PHLX Semiconductor index was down 2.01 points, less than half a percent, at 445.54 in late afternoon trading, but the index is down roughly 3.2 percent since Monday's close of 460.18.
W.R Hambrecht on Rambus
POSITIVE ANALYST DAY AND DOCUMENTS RELEASED IN ANTITRUST PRICE FIXING CASE SUPPORT RAMBUS; REITERATE BUY RATING
Yesterday, Rambus, Inc. hosted its analyst day and overall, we came away positively impressed with the near-term outlook of its litigation front on the antitrust price fixing case against DRAM manufacturers Samsung, Hynix, and Micron and on the long-term viability of its IP business model. The company provided a litigation update, product and IP overview, and reiterated its previous outlook for Q2. Following the issues of the last number of weeks, we believe that at the Analyst Day management restored investor confidence in the company. In addition, as we anticipated in our May 22nd note, documents in the price fixing case were released that were very favorable for Rambus. We continue to believe that despite the 18.5% move in the stock yesterday that at these levels, it is oversold, and we continue to recommend that investors build positions in Rambus. We see a number of upcoming positive catalysts: 1) Judge Whyte is likely to dismiss Hynix claims in the next few weeks for a JEDEC trial in August as part of phase 3 of the Hynix trial; 2) Rambus is to have a June 27th hearing in Judge Whyte's courthouse with regards to a request to accumulate interest on the +$300M damage reward Rambus was granted from Hynix; 3) potential further positive developments in the price fixing case which would further strengthen Rambus position against the DRAM makers. In the long term, the company continues to command a strong IP business model with the potential of collecting hundreds of millions of dollars in damages and future royalties on the heels of the successful Hynix trial and positive outcome in the price fixing case.
Well, Silrw definitely deserves the timely news award for today. The City never sleeps and all that....
Rambus Achieves 500th Patent Milestone
Thursday June 1, 8:00 am ET
Recent Patent Awards Include Innovative FlexPhase(TM) Circuit Technology
LOS ALTOS, Calif.--(BUSINESS WIRE)--June 1, 2006--Rambus Inc. (Nasdaq:RMBS - News), one of the world's premier technology licensing companies specializing in high-speed chip interfaces, today announced that it has been granted its 500th patent from the U.S. Patent and Trademark Office, and foreign patent offices. Rambus' growing patent portfolio includes fundamental inventions in the area of memory design, high-speed interfaces, package layout, and system design. One such invention recently awarded United States Patent 6,675,272 is used in Rambus' FlexPhase(TM) circuit technology. FlexPhase eliminates trace-length matching and corrects for timing mismatches in complex circuit designs, and was first demonstrated in Rambus' XDR(TM) memory architecture.
"Rambus has advanced the state-of-the-art in memory architectures and high-speed signaling for the past 16 years, achieving an industry-leading portfolio of patented inventions," said Kent Richardson, vice president of Intellectual Property at Rambus. "Reaching the milestone of our 500th patent is a testament to the passion for innovation of Rambus scientists and engineers, and to the ongoing commitment of the company to fundamental research and development."
Rambus' portfolio of patented inventions in the area of high-speed signaling includes those underlying all modern DRAM memory products and their associated memory controllers. Rambus innovations have been incorporated into virtually all digital electronics products including personal computers, video game consoles, digital TVs and digital set-top boxes. As signaling speeds continue to rise, Rambus innovations will become increasingly critical to delivering breakthrough levels of performance.
Rambus now has 500 issued and over 480 pending patents. For more information on Rambus's patent portfolio, visit www.rambus.com/products/innovationslicensing/.
About Rambus Inc.
Rambus is one of the world's premier technology licensing companies specializing in the invention and design of high-speed chip interfaces. Since its founding in 1990, the company's patented innovations, breakthrough technologies and renowned integration expertise have helped industry-leading chip and system companies bring superior products to market. Rambus' technology and products solve customers' most complex chip and system-level interface challenges enabling unprecedented performance in computing, communications and consumer electronics applications. Rambus licenses both its world-class patent portfolio as well as its family of leadership and industry-standard interface products. Headquartered in Los Altos, California, Rambus has regional offices in North Carolina, India, Germany, Japan and Taiwan. Additional information is available at www.rambus.com.
Contact:
Rambus Public Relations
Linda Ashmore, 650-947-5411 (Press)
lashmore@rambus.com
Briefing.com
11:42AM Rambus trades back nears its opening/high at 25.15/25.36 after finding support near its 200-day sma at 23.58 (RMBS) 25.05 -0.79 : Next level of interest lies near yesterday's low/close at 25.72/25.84 to close this morning's gap.
AP
Rambus Shares Decline on Internal Probe
Wednesday May 31, 9:21 am ET
Rambus Shares Fall After Company Says It Will Investigate Stock-Option Grants
NEW YORK (AP) -- Shares of Rambus Inc., which licenses computer memory technology, dropped in premarket trading Wednesday after it became the latest company to launch an inquiry into its timing of stock-option grants.
After market close on Tuesday, the company said it launched an internal investigation into the timing of stock-option grants in 2003 and before.
Rambus is one of a growing number of companies that are investigating whether company executives backdated grants, which increases the value of stock options. The government is also investigating a number of companies.
Rambus said its investigation will be assisted by outside legal and accounting experts.
The news is a blow to the Los Altos, Calif-based company, which recently received a positive verdict from a long-running patent-infringement lawsuit against South Korea's Hynix Semiconductor Inc., with a jury award of $306.5 million in damages. The suit was originally filed in August 2000.
Rambus shares declined 90 cents, or 3.5 percent, to $24.94 during premarket electronic trading on INET. The stock closed on Tuesday at $25.84 on the Nasdaq.
Here are the letters on the Web: tvs.consumerelectronicsnet.com/ articles/viewarticle.jsp?id=41953 - 48k -
Readers' reactions to a recent Micron cover story in a consumer electronics journal:
Yea, I have some feedback on the Micron cover story.
Great, with all that money Micron will be able to afford the huge damages they are going to have to pay after the Rambus anti trust trial finishes with them. And not to mention DRAM royalties going forward. Just wait 'till the DOJ docs come out.
Jack Lane, retired, St.Louis, Rambus shareholder
Regarding the Micron story, I was astounded by this paragraph:
"On top of that, Micron on several occasions has been charged with DRAM price fixing and is involved in a lengthy patent dispute with Rambus. One Micron employee was found guilty of obstruction of justice in 2003 with respect to the price-fixing allegations."
The fact of the matter is that Micron may be granted leniency because of its cooperation. That price-fixing scandal was lead by none other than Micron, and has resulted in nearly a billion dollars in fines imposed by the DOJ on the other memory makers (Samsung, Hynix, Elpida and Infineon).
The conduct of these companies was intended first and foremost to put Rambus out of business and thereby avoid paying royalties. They nearly succeeded by getting Rambus out of Intel's roadmap, but then got caught after jacking up DRAM prices in unison, which was best described by Michael Dell as "cartel-like behavior."
I find it repulsive that you glorify a company like Micron and its leader Appleton.
For balance, let me direct you to www.rambus.org , where you will find a vastly different take on the "facts" as you described them. Perhaps you can write a follow-up piece with more balance after that education.
Shane (last name held by request), a CPA in California
At least RMBS is showing some life this morning....
STOCK PULLBACK CREATES BUYING OPPORTUNITY IF MANAGEMENT RESTORE
2006-05-22 09:11 (New York)
Since the company received the positive verdict from the Hynix trial,Rambus stock has pulled back roughly 35% compared to the SOX index which has declined only 5% during the same time period. Although we are surprised at the magnitude of the pullback, we believe that management certainly contributed to the situation (1) with heavy insider selling, (2)lack of positive business announcements, (3) a large stock option grant
(8% dilutive) to employees, (4) miscommunication at the annual
shareholders meeting, and (5) 'defensive' signals rather than 'offensive'signals to the Street. Even though we are deeply disappointed in the waymanagement has conducted its efforts in the past six weeks, we believe that the stock is oversold at these levels. We see a couple of positive
catalysts ahead for investors to come into the stock at these levels.Therefore, we are recommending investors to get on board ahead of the expected release of court documents from the price fixing case in San Francisco, and ahead of the analyst day on June 2nd where we expect management to likely restore confidence in the investor community.
Rambus woos European consumer electronics industry
Christoph Hammerschmidt
(05/17/2006 www.eetimes.com)
MUNICH, Germany — Looking beyond its PC-centric base, intellectual-property vendor Rambus Inc. is moving to strengthen its position in consumer electronics. And for Los Altos, Calif.-based Rambus, courting Europe’s consumer companies will be part and parcel of that strategy.
Rambus has built a business providing high-speed chip-to-chip data interfaces to manufacturers of computer memory chips, chip sets and and processors. But Sharon Holt, senior vice president for sales, licensing and marketing, cited unserved opportunities in the consumer electronics markets, not only in digital device design but in analog and mixed-signal devices as well. And "multimedia is the motor of consumer electronics,“ Holt said.
Rambus established its first European office in January and now is working to extend its service offerings on the continent. With STMicroelectronics and Infineon memory spinoff Qimonda already on its customer list, Rambus hopes to attract companies more focused on the consumer sector. "Philips is not yet our customer but [looks] very interesting because of their position in the consumer space," Holt said. "Siemens also has interesting technological problems we could help solve.“
Data communications and networking present opportunities for Rambus technology, said Holt, as developers in those markets confront noise and other signal integrity issues. Gaming platforms will remain an important target for Rambus technology. High-definition TV is another focus. Holt perceives mobile devices as "more of a future market" for the company.
As it targets consumer markets, Rambus will stick with its established business model of developing, patenting and ultimately licensing technologies that it believes will be important in the future. On more than one occasion, Rambus has turned to the courts to enforce its patents. But while Rambus will continue to “protect strategic technologies,“ Holt said, it has “absolutely no desire to become a 'patent only' company" and will continue to provide design services and support to IDMs and fabless chip vendors.
I had voted "no" also.
Ah, semantics. I meant a call about Rambus, not by an actual staff member, God forbid....
Received a call last night from Rambus representative asking about my proxy vote. They must be concerned about that stock compensation issue....
Thanks for posting that good news re Infineon rejecting Micron's overtures. Ha, too bad Rambus couldn't afford to buy a majority stake in Quimonda....
Re Micron's interest--If they acquired IFX memory unit, would the Virginia settlement terms convey with it?
AFX News Limited
Infineon says IPO of Qimonda still preferred option, Micron voices interest
04.27.2006, 09:16 AM
FRANKFURT (AFX) - Infineon Technologies AG still prefers to launch an initial public offering of its Qimonda memory unit over other options including a possible sale, a company spokesman said.
Earlier, Micron Technology Inc chief executive Steve Appleton said his company wanted to enter into talks in order to acquire the German company's memory unit.
Infineon will carve-out the Qimonda memory unit from its core operations on May 1.
It has yet to announce a possible date or location for the IPO.
alfred.kueppers@afxnews.com
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