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Rambus Q2 2007 Earnings Call Transcript

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2007-07-26 21:04:59.0

Tags: Rambus Inc.

Question-and-Answer Session

Operator

(Operator Instructions) We will go first to Jeff Schreiner with American Technology Research.

Jeff Schreiner - American Technology Research

Was just wondering if we could talk a little bit about the opportunities outside litigation right now, and what the company sees, if we were to take away the option of litigation ever being successful, what the company really sees driving revenues and opportunities at this time.

Harold Hughes

Hi, Jeff. Harold speaking. I'm not exactly sure of the thrust of your question. Let me just talk a bit about our business model and, in doing that, hopefully I'll hit upon the issues that concern you. The business model has always been to continue to invest in technology.

And as I've shown you, or as I've discussed today, we've continued to create technology filed as patents and work with customers to use that technology in their products. That's obviously what we would be inclined to do. On occasion, unfortunately, we find it necessary to take legal action when people want to use the technology without paying for it.

The company started with the Farmwald-Horowitz patent but, subsequent to that, we've invented what we believe to be very, very powerful pieces of technology, which has the market both moves forward at an -- the technology market moves forward at an accelerating rate, we believe that the likelihood of that technology being an effective part of new products is increasing.

Our technology obviously is focused on high performance, but we've also talked about low power and flash in the past, all of which we think will be crucial portions of technology products coming out now and in the future.

Having said that, and Tom's here specifically to talk about litigation were the questions to come up -- we don't intend to give up on our patent, on our legal positions against those people violating our Farmwald-Horowitz patents.

Did that answer your question?

Jeff Schreiner - American Technology Research

Well, kind of. It really comes down to, Harold, is what's going to drive revenues if litigation keeps kind of remaining in the backdrop as an opportunity? It certainly seems that investors don't really have the confidence really of late that there's really anything that Rambus can do in the near-term.

And when you talk about future, you're talking probably greater -- I would assume you mean greater than 12 months. And just wondering, kind of, you know, how the company would really grow revenues over the next three to four quarters. It certainly seems in guidance ...

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