Rambus puts all its eggs in two baskets

Unfortunately, one of them belongs to Intel

  • alert
  • submit to reddit

Following another outburst from Intel CEO Craig Barrett in yesterday's FT, in which he described the relationship with Rambus as a failed bet, it is perhaps alarming for Rambus stockholders to read in the company's end of year statement that future revenues are dependent primarily on the rollout of Sony's PS2 and Intel's Pentium 4.

In the interview Barrett admitted: "We made a big bet on Rambus and it did not work out," adding that it had been a mistake to rely on another company for technology that "gates your performance".

So while Rambus is bullish about Q4 revenues up by almost 120 per cent over last year and full year revenue up 67 per cent to $72.3 million, the devil is very much in the detail.

All financial releases these days carry a cautionary message warning about forward-looking statements, but the Rambus paragraph is very specific, and worth quoting in full:

"This release contains forward-looking statements regarding financial results for future periods. Actual results could differ materially. Among the factors which could cause results to differ materially is the possibility that the Pentium 4 and PlayStation2 ramps will be slower than expected, that shipment of Rambus ICs and other licensed products by Rambus licensees will be below forecast, that no additional licenses for SDRAM-compatible ICs will be signed, that prices of RDRAMs will remain high compared to SDRAMs and that litigation and building costs will exceed the Company’s plans."

While it's pretty safe to expect that PS2 sales won't be much of a problem, Intel's change of heart over Rambus being the best thing since sliced bread for performance desktops will almost certainly put a dent in the Mountain View company's bottom line.

And another interesting point is Rambus' warning that litigation costs might 'exceed the company's plans'. For a company currently suing the butts off world+dog, that looks increasingly likely to be the case.

As Intel's Barrett remarked:

"We hoped we were partners with a company that would concentrate on technology rather than seeking to collect a toll from other companies." ®

Related stories

Intel slams Rambus toll collecting tactics
There is no 'F' in Rambus
Rambus piles pressure on Infineon
Rambus asks feds to stop Hyundai
Rambus takes aim at AMD and Transmeta
Rambus, Intel, Dramurai reach end game
Naughty Dramurai back DDR to hilt
Rambus threatens non-compliant Dramurai


Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.