Zacks Analyst Blog Highlights: Rambus, NVIDIA, Micron Technology, Nelnet and SLM - Press Releases

For Immediate Release

Chicago, IL – August 17, 2010 – Zacks.com Analyst Blog features: Rambus Inc. (RMBS), NVIDIA Corp. (NVDA), Micron Technology Inc. (MU), Nelnet Inc. (NNI) and SLM Corporation (SLM ).

Here are highlights from Monday’s Analyst Blog:

Rambus, NVIDIA Make a Deal

Technology licensing company Rambus Inc. (RMBS) announced that it had inked a patent licensing deal with the leading graphics chip company, NVIDIA Corp. (NVDA). As per the deal, NVIDIA will pay a royalty to Rambus for certain memory controller patents.

Despite a long-standing legal battle between the two companies related to patent infringements, the deal indicates a situation in favor of Rambus.

Rambus’ second quarter 2010 results were disappointing, with the loss per share of 19 cents (excluding gains from Samsung and cost of restatement and related legal activities, but including stock-based compensation expense) missing the Zacks Consensus Estimate.

Revenues were up 44% from the year-earlier period, but down 76% from the prior quarter. The significant sequential decline was due to the huge amount ($95.9 million) received as compensation for the settlement of a dispute with Samsung Electronics in the first quarter of 2010.

We believe that strong cash generation capabilities and diversification in the $100 billion LED market are positives for Rambus. However, a disappointing guidance for the third quarter, competitive pressure from Samsung Electronics and pending lawsuits against Hynix and Micron Technology Inc. (MU) are reasons of concern.

Nelnet Offers $55M to Settle Case

Nelnet Inc. (NNI) agreed to pay $55 million as part of its efforts to settle a lawsuit filed by Jon H. Oberg, the former Department of Education researcher, on behalf of the federal government. It was alleged the company, along with some other organizations such as SLM Corporation (SLM ), of receiving improper subsidies from the government.

Nelnet would pay this amount with its existing cash and this would be reflected in the company’s third quarter 2010 results. While Nelnet didn’t admit any wrong doing, the company said it was alleged to have received about $407 million in improper 9.5% special allowance payments.

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