WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 157.75

+1.5%

3:59 PM EST

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To: Sam who wrote (15544)	10/12/2000 5:00:35 PM
From: Ausdauer	Read Replies (1) of 60323

Taking no chances... SSTI projecting EPS through the first part of 2001!!! Is this what the market demands nowadays? Spill the beans and go out on a limb for a few quarters? That really takes guts. For the fourth quarter, we expect our product revenue to grow approximately 20 percent from the third quarter, mainly constrained by wafer supply. Product gross margin is expected to expand to approximately 47 percent, based on expected cost improvement and assuming continued stable pricing environment for the markets we are in. Royalty revenue is expected to be greater than $10 million. Operating expenses are expected to result in an operating margin of greater than 35 percent. Our expected tax rate is approximately 35 percent for the fourth quarter and earnings per share are expected to be approximately $0.48. For the first quarter of 2001, we expect our product revenue to grow approximately 20 percent from the fourth quarter of 2000. Product gross margin is expected to expand to approximately 49 percent, based on expected cost improvement and assuming continued stable pricing environment for the markets we are in. Royalty revenue is expected to be greater than $6.0 million. Operating expenses are expected to result in an operating margin of greater than 37 percent.. Our expected tax rate is expected to be approximately 38 percent for the first quarter of 2001 and earnings per share are expected to be approximately $0.56. For fiscal 2001, we expect our product revenue to grow approximately 125 percent from fiscal 2000. Product gross margin is expected to expand to approximately 50 percent, based on expected cost improvement, additional products and applications and assuming continued stable pricing environment for the markets we are in. Royalty revenue is expected to be greater than $30.0 million. Operating expenses are expected to result in an operating margin of greater than 38 percent. Our expected tax rate is expected to be approximately 38 percent for fiscal 2001 and earnings per share are expected to be approximately $2.90," he said. ___________________________________________________________________________________ Nice ramp-up in royalty revenues. That was one feature of SSTI's business that I have looked at critically. Nice to see it is finally taking shape. Ausdauer

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