Art,
***First, thanks for explaining the TSEM relationship. I think this investment is the easiest to understand as the original USIC fab investment serves as a prototype.
But could you please clarify the accounting principles for the FlashVision LLC and Digital Portal JV's?
***Second, you stated that...
"You can't predict when a license, or if a license will be granted,
but you can estimate a continuing royalty stream."
I hate to be repetitious, but it would have been nice to have a clarification of the overshoot in Q3 royalties (by $1.5 to $2.0 million), a generic summary of the CompactFlash licensing strategy, and a roughed out time schedule for the same.
Eli could have said something like...
[the following is not based in fact
and is written simply for example.]
"We had an addition $2.0 million in licensing and royalty revenues due to a one-time payment from TDK and the cross-licensing renewal by Hitachi, which now includes both binary and MLC technology. We anticipate an ongoing, revenue-bearing relationship with TDK for their flash card products as a result of this new license and a combination of licenses and production considerations from Hitachi."
I think that even some preliminary plans regarding licensing would be well received by analysts. SanDisk needs to emphasize the importance of both the IP and the manufacturing capabilities for the future.
I noticed this weekend that BestBuy is now selling Lexar Media, Simple Technology, SanDisk and Memorex (yes, Memorex) CompactFlash cards. There are no 64 MB SanDisk cards on the shelves, but Memorex has them in stock at $149.99 a piece. Also, Simple Technology always seems flush with product. I imagine this is not due to stagnant sales, but rather a full pipeline of flash capacity as the product packaging has been redone and is replacing the older versions of merchandise.
***Finally, the Lexar Media patent nullification trial is now set for early November. You wonder if Lexar Media asked for the trial to be postponed, but only got 2 weeks or so out of the maneuver?
The SanDisk lawyers need to drive a stake into the heart of Lexar Media. I am certain this would help to catalyze other cross-licensing agreements.
Ausdauer@we_need_a_licensing_catalyst.com |
