WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 198.47

-9.6%

9:49 AM EST

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To: Steve 667 who wrote (11938)	6/14/2000 4:13:00 AM
From: DukeCrow	of 60323

Analysts cannot be trusted as an accurate gauge of growth when comparing SNDK and SSTI head to head. Here is my rudimentary break down of both companies' growth. SSTI's yoy revenue growth is ~207%; SanDisk's is 148% (product revenue is growing 171%, license and royalty revenue is growing at 48%). At first glance, one would think SNDK is growing more slowly than SSTI. However, with revenue growing as fast as they are in both companies, I find it more telling to look at sequential revenue growth. That should give a better picture of growth going forward. SSTI's seq revenue growth in 1Q00 was 29% down from 38% seq growth in 4Q99; SanDisk's was 32% in 1Q00 (product revenue is growing 39%) up from 23% in 4Q99. This tells me that SanDisk is probably the one which will grow faster going forward. This is just my simple breakdown of the numbers. Analyst estimates for SanDisk seem absurdly low. I'd be very surprised if SanDisk doesn't blast through those numbers. Of course, knowing the analysts they will probably raise their estimates a couple of days before earnings are released. Ali

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