WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 199.85

-8.9%

3:59 PM EST

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To: Tumbleweed who wrote (7161)	9/29/1999 6:54:00 AM
From: Ausdauer	of 60323

Joe and Thread, The PIC contract works out to about 400,000 cards per year for the next 5 years (2 million cards total). At an estimated cost of $20/card (a little over $1.00/MB for a 16 MB card) that is about $8 million in revenue yearly for 5 years. SanDisk's annual product revenue in 1998 was just over $100 million, so that is 8% of total revenues. The 1999 top line is going to be at least $160 million, so this contract alone is worth about 5% of projected 1999 total revenues. That is nothing to sneeze at. This assumes that SanDisk gets the product/manufacturing revenues ($20/card) for the PIC card and Kaneb gets a smaller percentage for putting it all together. Ausdauer

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