"On 30 July 2007, the Commission sent Rambus a statement of objections, setting out its preliminary view that Rambus may have infringed European Union competition law by abusing a dominant position in the market for DRAMs. In particular, the EC was concerned that Rambus had engaged in a so-called "patent ambush", intentionally concealing that it had patents and patent applications which were relevant to technology used in the JEDEC standard, and subsequently claiming royalties for those patents. Similar charges had been pursued by the Federal Trade Commission (FTC) in the United States. The FTC has closed its investigation following a series of U.S. Court rulings underlining that the allegations of Rambus’ wrongdoing were ill-founded. On June 12, 2009, the European Commission announced its intention to accept Rambus’ proposed commitments, subject to market testing as prescribed by EU law. On December 9, 2009, the EC concluded that the commitments in their final form, as modified by Rambus, are adequate to meet the competition concerns expressed in the statement of objections."
Book value is about $1/share. However, if they lay off all the staff, they still are collecting $120 million in royalties/year which is about $0.50/share after taxes and SG&A. That should be worth about $2/share since I don't know how long this royalty stream is going to last. So $3 is about what I think this POS is worth after the MU/Hynix debacle is concluded.
Well, it could be near zero. They just had to buy back $ 100 million in stock from Samsung. They have at least $ 309 million in goodwill to wright off. Samsung might even file suit to recover payments to RMBS claiming fraud if certain patents are found to be invalid. The FTC could reinstate certain charges against RMBS. If NVDA wins their case, RMBS could be on the hook for a lot of money. Certain RMBS patents have expired and any revenue stream will drop off.
THERE ARE JUST TOO MANY THINGS THAT CAN GO WRONG FOR RMBS.