![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Wednesday, June 28, 2006 2:53:32 PM
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
Recent RMBS News
- Rambus to Present at Upcoming Investor Conferences • Business Wire • 05/14/2024 10:27:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/08/2024 08:22:28 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/08/2024 08:14:17 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/07/2024 08:52:09 PM
- Rambus Reports First Quarter 2024 Financial Results • Business Wire • 04/29/2024 08:05:00 PM
- Rambus Expands Chipset for Advanced Data Center Memory Modules with DDR5 Server PMICs • Business Wire • 04/29/2024 08:02:00 PM
- U.S. Futures Rise in Pre-Market Trading Amid Key Federal Reserve Meeting and Earnings Week Ahead • IH Market News • 04/29/2024 11:12:54 AM
- Rambus to Announce First Quarter Fiscal Year 2024 Results • Business Wire • 04/08/2024 08:05:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/11/2024 08:05:25 PM
- Form ARS - Annual Report to Security Holders • Edgar (US Regulatory) • 03/08/2024 09:10:53 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 03/08/2024 09:05:56 PM
- Form DEF 14A - Other definitive proxy statements • Edgar (US Regulatory) • 03/08/2024 09:02:08 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/08/2024 06:36:31 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/07/2024 09:06:12 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/06/2024 06:26:59 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/05/2024 09:34:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 05:48:21 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/04/2024 11:21:07 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/04/2024 09:18:52 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/01/2024 01:55:31 PM
- Rambus Initiates Accelerated Share Repurchase Program • Business Wire • 03/01/2024 01:45:00 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 02/23/2024 06:04:34 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/21/2024 07:22:15 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/20/2024 09:28:08 PM
- Rambus to Present at Morgan Stanley Technology, Media & Telecom Conference • Business Wire • 02/20/2024 09:05:00 PM
FEATURED Freedom Holdings Corporate Update; Announces Management Has Signed Letter of Intent • Jul 3, 2024 9:00 AM
EWRC's 21 Moves Gaming Studios Moves to SONY Pictures Studios and Green Lights Development of a Third Upcoming Game • EWRC • Jul 2, 2024 8:00 AM
BNCM and DELEX Healthcare Group Announce Strategic Merger to Drive Expansion and Growth • BNCM • Jul 2, 2024 7:19 AM
NUBURU Announces Upcoming TV Interview Featuring CEO Brian Knaley on Fox Business, Bloomberg TV, and Newsmax TV as Sponsored Programming • BURU • Jul 1, 2024 1:57 PM
Mass Megawatts Announces $220,500 Debt Cancellation Agreement to Improve Financing and Sales of a New Product to be Announced on July 11 • MMMW • Jun 28, 2024 7:30 AM
VAYK Exited Caribbean Investments for $320,000 Profit • VAYK • Jun 27, 2024 9:00 AM