WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 163.33

+3.5%

Nov 28 9:30 AM EST

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To: Reseller who wrote (7605)	10/13/1999 11:17:00 PM
From: Ausdauer	Read Replies (2) of 60323

Reseller, re: your questions 1)I believe they stated that product gross margins should return to Q2 1999 levels by Q1 of 2000. There was an increase in "spot prices" for certain "components", but I am not sure which "components" these were. Also, they have worked the kinks out of the 128 Mbit manufacturing process which caused a decrease in production yields in Q3. Finally, they will be able to produce 32 MB MMC without need for stacking chips beginning late this year. =====> Thus, the increase in cost was multifactorial. 2)The secondary will be completed next month depending on near-term stock performance. Tax-deductible donations will also be accepted. Ausdauer

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