3Q EARNINGS
I've been looking over the earnings report for the second quarter. I find the following:
Income -
$23922 mil Product
$3425 mil Royalty
$3690 Net Income
24 mil shares
.15 per share
The royalty income went straight to the bottom line. Everything else was flat.
To my thinking, their royalties should have made a huge jump up in 3Q.
I think it's very possible for them to have doubled their royalties for that period. In 3Q, they started collecting royalties from Samsung and Hitachi, among others, during a time when the market was opening up for them. As for their own product, they definitely started to sell higher Mb memories (higher margin), but most were still the lower ones (2Mb).
My speculations will be proven wrong or right next week, but if we don't see a significant jump in the royalties, we'll see it for sure in 4Q.
Based on everything I'm seeing in the marketplace, I can't help but think that Sandisk made huge jumps up in 3Q. The 4th Q we're in now looks great because of the XMAS season.
First Call is now predicting .18 for 3Q. I'm predicting .25, but a doubling of royalties would give us .30. If they could actually sell their own products in a more profitable manner, we would see more than .30. Very exciting!
Well, we'll see soon on Wednesday after close. Unfortunately, many of the details don't come out until several weeks later.
Go to www.sec.gov to see that last 3Q report.
Continued good luck. Do your own DD!!!!
dave |
