Sam, I fear that there might be two inventory problems, the OEM's inventories do not show on SNDK's balance sheet, the big bulge in inventories to $98 MM must be retail product for which SNDK has not yet recognized revenues. I do not have handy the last quarter's balance sheet, but if memory serves the inventories have grown by a solid $20 MM (Jay, I know you have these, and for some strange reason, Edgar does not have SNDK' 10Q for the last quarter, so chime in with last Q inventories). From a cash point of view, the accts. receivable have gone down by $27 MM (at least, we do not have to worry that the bulge in receivable the last quarter was a failing customer unable to pay on time), so that should cancel the increase in Inventories. Because of the "short term Investment" category, it is difficult to come to any conclusion on the apparent reduction in cash. I doubt that the Tower payments are recorded, since they record the UMC investment (probably "locked up stock") and the joint venture ($130 MM or which is the Toshiba deal), nowhere on the balance sheet does it show, as yet the investment in Tower, probably because the money was not yet paid. It would not be surprising that the money will be paid only when Tower shows they have all the money to complete the project, I think Tower is still short some $300 MM or so.
Zeev |
