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Technology Stocks : WDC/Sandisk Corporation
WDC 150.92+8.5%3:59 PM EST
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To: scots40 who wrote (20116)4/18/2001 6:29:14 PM
From: Art Bechhoefer  Read Replies (1) of 60323
 
They predicted lower royalty payments -- around $10 million for Q2, mainly because of lower product prices. They did not mention any new licensees. Harari also noted that some of the smaller players (who may or may not pay royalties to SNDK) might give up altogether because they didn't have enough cash flow to stay in the market. This would, in a perverse way, be to the advantage of SNDK, as it would allow SNDK to replace these smaller companies as a supplier both to retail and to OEM customers.

Art
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