WDC/Sandisk Corporation Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : WDC/Sandisk Corporation

WDC 169.81

+0.5%

Dec 8 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Andre Williamson who wrote (20736)	8/15/2001 9:03:25 PM
From: Ausdauer	of 60323

Lexar states clearly they think they have money through the end of 2001 and that's all. I'm still wondering who (other than a large competitor) might buy Lexar or its technology. I don't know why anyone would lend them money. Andre, Having listened to all of Lexar's c.c.'s I have a few responses... 1) They are planning to sell excess infringing inventory in Japan where SanDisk's patents cannot be enforced. (I don't know how a favorable judgement for SNDK in the Mitsubishi suit will alter this.) 2) Yes, LEXR should be able to quantify their risk going forward. Perhaps they have sold controllers to several other companies (like Viking) realizing that this may expose them to ongoing risk since any "old" controllers would be subject to royalty payments. They will indemnify Viking, so they presumably would indemnify any other company they sold to in quantity. (BTW, can you imagine the Lexar CEO calling the Viking CEO to inquire about unsold infringing inventory levels?!?) 3) If LEXR does not reach profitability and were to default on its loan obligations it is unclear who would have first dibs on their IP and licensing revenues. Would stockholders or the holder of the promissory notes own the IP? Was it used as collateral? I don't think that is public knowledge. Clearly Sony has some interest in the MemoryStick controller technology and would not allow the IP to fall into competitors hands. Perhaps Samsung would purchase the IP in that instance. 4) I still wonder if Lexar's controller technology covers MLC technology. Since Lexar has no capabilities for flash wafer construction/manufacture it would seem likely they lack the needed expertise to manufacturer controllers for MLC-based flash. Aus

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next