WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 153.96

+0.7%

Nov 19 3:59 PM EST

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To: Binx Bolling who wrote (16184)	10/28/2000 1:34:25 PM
From: Zeev Hed	Read Replies (3) of 60323

I am not sure about SNDK not recognizing revenues until the end user has acquired the product. If that was the case, product in the "channel" (on shelves before end user's buy) should have been in inventory, but inventories are only at 67 MM, representing about $100 MM in end sales and that would include shipments in transit from fabs as well as inventories in house, typically at 6 weeks of sales, namely at the current "sales rate", about $75 MM, thus only $50 MM of the inventory is in transit and in house, leaving only $17 MM of inventory (or $25 MM in end demand) to account for the "on shelves" goods not yet recognized as "revenues", much too low (two weeks of sales?) for a sales rate of $50 MM/month. No I think that the $131 MM in accts receivable is money owed for shipments in the last 81 days, and that is an increase from the March quarter where that figure stood at still a too high, 73 DSO. Zeev

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