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Technology Stocks : WDC/Sandisk Corporation
WDC 150.99+8.6%3:59 PM EST

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To: Art Bechhoefer who wrote (16655)11/15/2000 10:11:19 PM
From: add  Read Replies (1) of 60323
 
LEXR Royalty Rate:

We are currently involved in significant and costly litigation with SanDisk
Corporation, our primary competitor, in which the Federal District Court has
found that some of our products, which accounted for approximately 80% of our
revenues in 1999 and the first six months of 2000, infringe one of SanDisk's
patents.

LEXR's revs 100M in 1999 and 2000 so far. So, CF revs = 80M.

8M/80M = 10% royalty. That looks like a stiff rate to me.
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