Harold Hughes, he can taste vindication?

Disclosure: I have been very disappointed with Rambus Inc. Conference Calls for eons. If you have read Treowth for a few quarters, you know this.

Further Disclosure: I have never been treated for what family and friends feel is delusional behavior - my belief that in the end, Rambus will prove to have been an investment of pure genius.

I am incurable . . . that noted, last evening I listened to the Webcast of Harold Hughes, CEO & President of Rambus Inc. at the Citi Technology Conference, Hilton New York Hotel held on September 4, 2008.

First the negative:
It simply kills me how many times Mr. Hughes clears his throat. Respectfully, I suggest using a microphone with a switch that he can use to turn off the sound - clear his throat - turn on the sound.

Now the good stuff:
1) Mr. Hughes was full of piss and vinegar.
2) Mr. Hughes was cocky.
3) Mr. Hughes was full of piss and vinegar. Oh, I noted that already. Well it is worth mentioning twice.
4) I am convinced that Mr. Hughes will NOT settle for less than 4.25% on US sales of DRAM, in fact, I'd bet 4.25% is the bottom rung for World Wide sales. (Nope, not seeking treatment next week. I am not.)
5) Mr. Hughes is prepared to take the cartel litigation to and through the Gates of Hell if necessary.
6) The law firms are paid up front - no contingency fees. Bonus dough is discretionary with Rambus.

Notable quotes - paraphrases as I remember them:
1) Next February, March is going to be very interesting.
2) I am not passive. Spending $45 million on lawyers a year isn't passive in my book.
3) I am not going to forget laying off 90 employees anytime soon.
4) See the ball. Hit the ball. I believe referring to how the lawyers are paid. I've never heard it expressed in that fashion before.

Listen for yourself here. There is a presentation, which for some reason starts 7-8 minutes into the clock and there is a separate breakout session - Q & A for us regular folks. I had to manually advance the slides during the presentation and they are a bit small.

Rambus Inc. Conference Calls - Recent Trend

Rambus Inc. will hold a conference call on July 24, 2008 at 2:00 p.m. Pacific Time to discuss its second quarter 2008 financial results.

The next day following the conference calls for the last three quarters, the share price has dropped. Why? The market has bet that Harold Hughes had a surprise to announce.

I predicted that Mr. Hughes would not disappoint at the last CC. I was wrong. The CC was a total waste of time.

Harold Hughes and Gang have shown no evidence that they have figured out how to have a meaningful conference call.

Again, I will go out on the limb and state that Harold Hughes will deliver. Not a new license. Not a settlement. Rather he and his team will communicate in a meaningful manner with the shareholders.

Click on graph to enlarge.

Got Coke?

Dear Mr. Hughes,

I look forward to the CC.

Please come prepared to share.

The1stBA - you couldn't have a more loyal fan than her - sent me this YouTube. I think you will get a kick out of it.

Respectfully yours,

Mr. Donkey

Products or message?

Harold Hughes, CEO of Rambus Inc. once told a shareholder to buy Coke if he didn't like the fact that he doles out options like a drunken sailor to his employees - claiming he didn't know how else to run a high tech company on the bleeding edge (my paraphrase). At the time, Coke with in the upper $40's and Rambus was in the upper $30's.

Coke has slipped over $60 and Rambus is in the low $20's - this despite Rambus scoring a recent major (colossal) legal victory. Why does Rambus flounder? Is it the product or the conveyance of the Rambus story?

May 9, 2006, market close:
Coke: $48.04
Rambus: $37.46

March 28, market close:
Coke: $60.94
Rambus: $22.75

Harold Hughes, Rambus Inc. CEO

Will ring the bell to open NASDAQ on Tuesday, March 11, 2008.

Mr. Hughes also rang the bell on December 20, 2006. (Photograph left.)

Chopper

I asked Chopper to give me the look he might have if the CEO of a company he invested in pulled back imaginary revenue right before the annual shareholders meeting he put off for 8 months while dragging his feet to do a few calculations after an options backdating scandal (and then rewarding the bean counter millions of dollars for doing his job)
Submitted by FinzToRite.

Mrs. Hughes . . .

Perhaps not the infamous IV poster who is married to the CEO of Rambus Inc., but funny all the same. HT Doctorweld . . .

From Crackle: Mrs hughes skewed views

Rambus Inc. annual report

Arrived in the mail today - the first to arrive in care of E*Trade.

Nice cover.

Inside cover, from Harold Hughes - President & CEO

To Our Stockholders,

"I want to thank you personally for your patience and support during a challenging year for Rambus. . .

Our memory technology has dramatic impact because it is foundational to nearly all digital electronics . . . we place strategic focus on four markets that in combination produce unit shipments in the billions per year: computing, gaming, HDTVs and mobile devices . . .

We're committed to providing the market with powerful memory solutions . . . we're committed to providing the market with a license to speed."

Nice touch thanking us for our patience during the last year. Seriously. I don't wish to be dismissive of that recognition of the beleaguered shareholders . . . but I think that the patience extends well beyond a year.

Page 40 of the annual report sets forth a performance graph comparing Rambus, NASDAQ Index and RDG Semiconductor Index for 75 months. A hundred bucks invested 75 months ago in Rambus Inc. would have taken a very serious hit come December 13, 2006:

Rambus Inc. $23.98
NASDAQ Composite $103.48
RDG Semiconductor Composite $74.95

We are patient, but don't take us for granted.

Be seeing you next week. Bring your best Coke joke.

Rambus Inc. to huddle with shareholders

What: Annual stockholder meeting
When: December 19, 2007 - 10:00 a.m.
Where: Westin Hotel at 675 El Camino Real, Palo Alto, California

This meeting will be memoriable . . . remember you read it first here.

For those who are unfortunately unable to attend in person . . .

The live webcast of the stockholder meeting can be accessed via Rambus' web site at www.rambus.com.

SanDisk sues 25 companies

Why is Rambus Inc. CEO, Harold Hughes, holding back the hounds?

Said Harold Hughes in February 2006:

"We have technology that we invented literally 10 to 15 years ago, that is going into just about every mobile phone, so that will be an opportunity for us to find patent licenses . . . and to a certain extent our technology was then incorporated wantonly."

Is it because Mr. Hughes is playing with the olive branch? To date, the effectiveness of that approach and $5.00 will get you coffee.

Is it time for Rambus Inc. to change approaches or horses?

Harold, news flash . . . Mrs. Hughes can't blame JD any longer. Time to make it happen or give it serious thought about finding another place to park your car during daylight hours. Man up. Throw away the olive branch and let the hounds loose.

Back to SanDisk . . .

SanDisk® Corporation (NASDAQ: SNDK) today announced the filing of three patent infringement actions against 25 companies that manufacture, sell and import USB flash drives, CompactFlash cards, multimedia cards, MP3/media players and/or other removable flash storage products. The actions, filed in the United States District Court in the Western District of Wisconsin and in the United States International Trade Commission (“ITC”), allege that the defendants have infringed various SanDisk system-level patents, and seek damages and a permanent injunction in the federal court actions, as well as a permanent exclusion order from the ITC banning importation of the products into the United States.

“These actions demonstrate SanDisk’s long-term commitment to enforcing its patents, both to protect our investment in research and development by obtaining a fair return on that investment, and out of fairness to third-parties that participate in our patent licensing program,” said E. Earle Thompson, Chief Intellectual Property Counsel at SanDisk. “Our goal is to resolve these matters by offering the defendants the opportunity to participate in our patent licensing program for card and system technology. Otherwise, we will aggressively pursue these actions, seeking a prompt judicial resolution awarding damages, obtaining injunctive relief and banning importation of infringing product.”

Ramboids wonder . . .

Why did John Danforth leave Rambus Inc.?

Was JD pushed? If so, by Harold Hughes or his assertive spouse?

Does JD have better opportunities? If so, what does that mean to Ramboids?

Entry into Severance Agreement with John Danforth

On October 22, 2007, Rambus Inc. (“Rambus”) entered into a severance agreement and release (the “Agreement”) with John Danforth. So long as it is not revoked by Mr. Danforth, the Agreement is effective eight days after being signed. Pursuant to the Agreement, Mr. Danforth has resigned from his employment with Rambus effective October 22, 2007 (the “Termination Date”). The Agreement supersedes and replaces in its entirety Mr. Danforth’s existing employment agreement with Rambus, which ran through October 22, 2007 (the “Employment Agreement”). The Agreement provides, for a mutual release of all claims occurring up until the Termination Date, continued confidentiality by Mr. Danforth, non-solicit and non-compete obligations continuing through December 31, 2009 by Mr. Danforth and mutual non-disparagement obligations.

As consideration for entering into and not revoking the Agreement, including consideration for Mr. Danforth releasing purported claims against Rambus relating to (i) potential liability Mr. Danforth may have incurred under Internal Revenue Code Section 409A and California state tax law, (ii) the upward repricing of certain of Mr. Danforth’s stock options on December 31, 2006 to mitigate potential additional Section 409A and California state tax exposure, and (iii) bonuses relating to litigation outcomes under Mr. Danforth’s Employment Agreement, Mr. Danforth will receive from Rambus a lump sum cash payment, less withholding, of $2,850,000. The Company will also make a separate payment to Mr. Danforth’s attorneys for $150,000. Mr. Danforth will also continue to receive base salary, less withholding, through the Termination Date and a payment for three weeks’ accrued vacation. Additionally, Mr. Danforth’s outstanding Rambus options and restricted stock units will continue to vest up until the Termination Date. All unvested Rambus options will terminate on the Termination Date. Mr. Danforth may exercise any of his vested options until the earlier of (i) January 31, 2009, or (ii) the original full term specified in his individual option agreements. Rambus has agreed to issue a press release relating to Mr. Danforth’s departure on the same day upon which this 8-K is filed with the U.S. Securities & Exchange Commission.

As part of the Agreement, Mr. Danforth agrees to make good faith efforts to assist in legal proceedings for Rambus, as it may reasonably deem necessary, involving issues worked on by Mr. Danforth during his employment with Rambus. The Agreement provides Mr. Danforth will be reimbursed by Rambus for reasonable expenses incurred with any such participation. If Mr. Danforth’s service as a lawyer is specifically requested, Mr. Danforth will be paid at the rate of $500 per hour.

Where is Rambus Inc.?

ThreeJack at Investors Hub asks that question regarding an Op-Ed by Mark LaPedus, the EETimes Editor. I don't know if Rambus failed to show or was a wallflower with an empty dance card. I suspect ThreeJack is correct - Rambus Inc. failed to show. If so, it is evidence that it is time for Rambus Inc. to make some changes . . .

What is the downside to defending your business model in an industry rag? Put a kinder way, what is the downside to demonstrating some leadership on behalf of the IP sector in correcting the misguided Mr. LaPedus?

Can only imagine Mr. Hughes is too busy ramroding Mr. Rishi to finish the restatement to find an hour to respond to the EETimes Editor. And, Ms. Holt must be too busy signing licenses to write a letter to the Editor defending the IP business model. Mr. Lavelle? He doesn't seem to have much to say at all, but he must be busy negotiating with Messers Tate, Mooring, and Davidow to get back the excess shareholder equity they received as a result of backdated option sales. Hey, what about Mr. Messegee?? He is the Corporate Marketing Manager. No doubt he is busy, too, but perhaps he can steal a few minutes to write a letter to Mr. LaPedus on behalf of Rambus?? How about it, Mr. Hughes?

HT ThreeJack.

Harold Hughes was right

In April of 2006, Mr. Hughes, Rambus Inc. CEO, suggested Ramboids purchase shares of Coke if they weren't comfortable with how things Rambus were going. Here is a chart of Coca Cola Company courtesy of AOL . . .




Here is a chart of Rambus Inc. Yikes!












HT JRW for reminding us.

Former Rambus Inc. VP writes about Mrs. Hughes

Steve Tobak, former Rambus Inc. senior vice president of worldwide marketing, wrote an article for CNET about Nancy Hughes, wife of Rambus Inc. CEO, anonymously posting 170 messages on the Rambus investor message at Investor Village.

Mr. Tobak is informative (And there's evidence that someone may have removed some of her posts from the message board.) , entertaining (Rambus needs more controversy and scandal like the Internet needs more bloggers and porn.), and isn't afraid to join Mrs. Hughes (That said, I admire Nancy's intentions and agree with many of her views, including some of the more controversial ones). Unfortunately for the Ramboids and clear journalism, Mr. Tobak also adds to the disinformation that circulates about Rambus Inc.:

But Rambus wasn't as good at litigating as it was at developing technology; its failings in America's courts have become the stuff of legend, conspiracy theory, and nightmares for employees and investors. Adding to the company's woes, last year the Federal Trade Commission overturned a ruling in Rambus' favor and found the company unlawfully obtained monopoly power.

A careful reader will find no mention of litigation victory - specifically the first two rounds in its litigation with Hynix Semiconductor, with round three scheduled for January 2008. Also, no mention that the initial FTC was in favor of Rambus and that the FTC remedy is close to being economically impotent and is on appeal.

Yes, Rambus' record at litigation may not be as good as its ability to develop technology - but the Rambus line of the score book is not empty. Yes, Ramboids are sensitive . . .

Rambus Inc. Song of the Day

It's just a rumor is all I can say, but odds are being laid that Harold might soon be introducing Nancy as .............

"My Next Ex-Wife"

by Little Charlie & The Nightcats (1992)

Little Charlie & The Nightcats -- Night Vision


Submitted by FinzToRite.

Inspiration from 25 years ago

Please Mr. Hughes, listen to the number one Billboard song July 19, twenty five years ago . . . kick some butt . . . please release Rambus Inc's restated financials . . .

Good boys Geoff and Harold they are

Geoff Tate and Harold Hughes, former and current CEO of Rambus Inc. are popular (easy?) targets of the frustration of many Ramboids. If one asked their mothers to for some of the good things their sons had done for Rambus, what might they say?

Momma Tate:

1) Hired John Danforth. The litigation buck stopped – for many years – at Danforth’s desk. (Hiring Danforth was genius, incredible luck or both?)

2) “Passed out stock options like Halloween candy”. The engineers at Rambus generated hundreds of patents. (Without the stock options, the engineers might have sought employment with Micron, Samsung, Hynix and others?)

3) Walked away from millions of dollars in unexercised options. (Prudence, conscious or both?)

4) He will fall on the option backdating sword for the team. (I hate blood.)

Momma Hughes:

1) Kept Danforth at Rambus – transitioned Danforth from General Counsel to Senior Legal Advisor.

2) Listened to Danforth – hired Stone and others and filed the AT case.

3) Exercised only enough options to pay taxes.

4) Gave the Ramboids hope with his gazillion dollar TAM comment.

5) BOD adopted Stock Ownership Guidelines for Executive Officers. (Momma says this was her boy's idea.)

6) Has not settled the litigation for pennies on the ten-spot.

7) Has not taken Rambus private.

Harold Hughes did not dis John Dowd directly

Lore of the Ramboids is that Rambus Inc. CEO, Harold Hughes, was disrespectful of shareholder John Dowd - telling him to buy Coca-Cola - at the 2006 annual shareholder meeting. Pyres have been erected for Hughes in effigy. Any Donkey has been none too polite on the topic and repeating the lore on more than one ocassion, most recently here.

sdhawgman, post #92817 on the IV Rambus board, posted "I'm not happy with HH either but this is a FALSE STATEMENT. HH said to go buy coke if you don't like options in a prepared statement before John Dowd even stood and spoke..."

Accuracy is important at Treowth. Any Donkey went to work and in short, sdhawgman appears to be correct - HH made his infamous "buy Coca-Cola" statement pre-JD (John Dowd).

Sources:

Edlee provided Any Donkey with a link to a transcript of the 2006 annual shareholder meeting hosted at Rambus.org.

Mr. Dowd told Any Donkey (HH) "phrased it as a general response to any and all that would question the ESO largesse."

Any Donkey e-mailed Nicole at Rambus.com and requested a link to the web cast. No response - but I note that it has only be a day.

Thus, Any Donkey apologizes to Harold Hughes for inaccurately blogging, posting and otherwise believing that Mr. Hughes directly disrespected John Dowd.

But Any Donkey - not buts. Period. I apologize Mr. Hughes, I apologize.

So, my opinion on stock options -- I guess I'd have to say, and I don't mean to be flip by this. I mean to be very very honest. Stock options will remain a part of running this company. I don't know how to run it without them. I do not know how to run it without them, but if you believe fervently that we shouldn't have them, sell the stock. Buy Coca-Cola. I don't know what you should buy, but sell the stock. We need stock options to run this company.

Ah ha! I guess we're really looking forward to the question and answer session, aren't we?

Dedication to Harold Hughes

This week's dedication is another classic . . . Freddie Mercury's (Queen) We Are The Champions. I'd pay to see Harold perform this number either at the next shred party or following Rambus Inc.'s thump of Hynix in Phase III.

RIP Freddie Mercury, you were a talent. Read more about Freddie, his nearly four octave vocal range, life, lifestyle and more at Wikipedia.

Photograph credit: Wikipedia

Rambus Inc. CEO Harold Hughes - because I care

Hoping your Father's Day is a good one and that you enjoy another one of my favorite tunes . . .

Procol Harum – A Whiter Shade Of Pale lyrics

(Missing verses from the music video)

. . . She said, "I'm here on a shore leave,"
Though we were miles at sea.
I pointed out this detail
And forced her to agree,
Saying, "You must be the mermaid
Who took King Neptune for a ride."
And she smiled at me so sweetly
That my anger straightway died. . .

. . . If music be the food of love
Then laughter is it's queen
And likewise if behind is in front
Then dirt in truth is clean
My mouth by then like cardboard
Seemed to slip straight through my head
So we crash-dived straightway quickly
And attacked the ocean bed . . .

Art Credit: Howard David Johnson's Myths And Legends Of The Ancient World.