WDC/Sandisk Corporation Message Board

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Technology Stocks : WDC/Sandisk Corporation

WDC 181.54

+1.1%

Dec 26 9:30 AM EST

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To: Bobby who wrote (1008)	10/18/1997 3:52:00 PM
From: Mike Winn	of 60323

Bobby, I think the royalty revenue for Sandisk is not fixed but based on sales by the licenced OEMs. For instance, if Samsung sells X amount of flash for this quarter (or month), then they will pay Y dollar amount to Sandisk for the quarter (or month). Since it's not predictable income, I think it's not included in the deferred revenue. I am not an accountant, so I am not so sure. You may want to ask your professor again. I am interested to know what he has to say. Btw, do you think that deferred income refers to sales that are not paid yet (account receivable)? It's best to call the company and ask. Regards, Mike.

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