From Rambus' IPO filing
In connection with the Intel Contract, Rambus granted to Intel a warrant for the purchase of up to 1,000,000 shares of Rambus Common Stock at an exercise price of $10.00 per share. Such warrant vests and becomes exercisable by Intel only if more than 20% of the main memory chipsets shipped by Intel in each of two consecutive calendar quarters implement certain Rambus interface specifications, which will result in a charge to the statement of operations at the time of achievement of the milestones based on the fair value of the warrant. The warrant expires on January 7, 2005; provided, however, that if the vesting condition described above has not been satisfied by December 31, 2000, then the warrant will expire on December 31, 2000. Rambus granted to Intel certain registration rights with respect to the shares of Common Stock purchasable upon exercise of the warrant.
--Page 54, 3 Paragraph
Does anyone else here know the specifics of Intel's contract with Rambus? Is there specifics in the contract that will cost Intel an arm and a leg if they break it? Or is it just Intel's shear arrogance that it continues to support a ailing memory system, because it cannot admit it made a mistake?
Because I want to know what is why is Intel scraficing its market share, reputation, and stock price all for only 1 Million RMBS shares @ $10 a share. Current going price for Rambus is $81.75 a share (at time of this post). That's only a net profit of $71.75million. Even if Intel can hype RMBS stock to the $1K range, its only $1billion in profit. Intel already lost over $100 billion in stock value because of its blunders and Q3 earnings report.
The last few Intel blunders are either directly or indirectly related to its support of the Rambus technology.
i820, MTH, and Timna are all related to the Rambus memory interface or getting around it.
i820 & MTH was recalled because memory problems that's causing reboots, memory corruption, etc.. All because the chipset supports Rambus, and MTH is needed to translate the SDRAM signal to Rambus signals to the Chipset.
Timna is Intel's system on a chip solution and was canned because its Rambus interface is not cost effective on the low end.
The P4 delay (again) is rumored that its the i850 chipset that's holding back the P4 release. Current rumor is that the the i850 is having problems handling intensive graphics (from Dell's statement no less). This highly suggests that it might also again be a memory problem and crashes, reboots, freezes or whatever the graphics card called on the main memory. (P4's lackluster performance is another issue)
In connection with the Intel Contract, Rambus granted to Intel a warrant for the purchase of up to 1,000,000 shares of Rambus Common Stock at an exercise price of $10.00 per share. Such warrant vests and becomes exercisable by Intel only if more than 20% of the main memory chipsets shipped by Intel in each of two consecutive calendar quarters implement certain Rambus interface specifications, which will result in a charge to the statement of operations at the time of achievement of the milestones based on the fair value of the warrant. The warrant expires on January 7, 2005; provided, however, that if the vesting condition described above has not been satisfied by December 31, 2000, then the warrant will expire on December 31, 2000. Rambus granted to Intel certain registration rights with respect to the shares of Common Stock purchasable upon exercise of the warrant.
--Page 54, 3 Paragraph
Does anyone else here know the specifics of Intel's contract with Rambus? Is there specifics in the contract that will cost Intel an arm and a leg if they break it? Or is it just Intel's shear arrogance that it continues to support a ailing memory system, because it cannot admit it made a mistake?
Because I want to know what is why is Intel scraficing its market share, reputation, and stock price all for only 1 Million RMBS shares @ $10 a share. Current going price for Rambus is $81.75 a share (at time of this post). That's only a net profit of $71.75million. Even if Intel can hype RMBS stock to the $1K range, its only $1billion in profit. Intel already lost over $100 billion in stock value because of its blunders and Q3 earnings report.
The last few Intel blunders are either directly or indirectly related to its support of the Rambus technology.
i820, MTH, and Timna are all related to the Rambus memory interface or getting around it.
i820 & MTH was recalled because memory problems that's causing reboots, memory corruption, etc.. All because the chipset supports Rambus, and MTH is needed to translate the SDRAM signal to Rambus signals to the Chipset.
Timna is Intel's system on a chip solution and was canned because its Rambus interface is not cost effective on the low end.
The P4 delay (again) is rumored that its the i850 chipset that's holding back the P4 release. Current rumor is that the the i850 is having problems handling intensive graphics (from Dell's statement no less). This highly suggests that it might also again be a memory problem and crashes, reboots, freezes or whatever the graphics card called on the main memory. (P4's lackluster performance is another issue)
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