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Technology Stocks : WDC/Sandisk Corporation
WDC 139.09-0.8%Nov 21 9:30 AM EST
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To: limtex who wrote (19461)3/6/2001 4:27:08 PM
From: Art Bechhoefer  Read Replies (2) of 60323
 
L, the issue I raised dealt with manufacturing costs, which are expensed in the quarter in which they occur. So in the last quarter, profits were reduced by the cost of products that were not shipped but remain in inventory. As you note, if they finally sell that inventory at a lower than expected price, ok, they will have to make an adjustment. But meanwhile, the actual production cost of the item was already taken in the previous quarter. Now if they have to write off the entire inventory as zero value, then I can understand your point. But I seriously doubt if that is the case.

Art
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