WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 175.07

+0.5%

11:04 AM EST

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To: Ausdauer who wrote (11149)	5/18/2000 10:13:00 AM
From: Tumbleweed	Read Replies (1) of 60323

..SanDisk's defense costs of $1.7 million... Money that will be recouped many times over in additional royalties when (?if?) they win the lawsuit. Even if they get nothing from a bankrupt Lexar, Sandisk will be in a much stronger position with other potential licencees. I also suspect that as trial date draws nearer, the VC's bankrolling Lexar might well start looking at the costs of caving in and paying royalties, compared to taking a 'hit below the waterline' immediately before IPO, should they lose. It would also be interesting to know what Lexar's burn rate is compared to outstanding funds. I dont know if there is anyway to discover that? Joe

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