SANDISK RESPONSE - 12/19/97
I don't recall who these questions came from because I just sent SanDisk a few questions up front as examples to give them an idea of what would be coming. Anyhow they answered the following. Some of the answers look like canned answers.
Question:
There is concern about competition from SmartMedia. Will they be required to pay royalties to SanDisk for sales of their product?
Answer:
We have patent cross-license agreements with and collect license fees and royalties from Intel, Sharp, Hitachi, Toshiba and Samsung.
The terms of each agreement are confidential.
Question:
There have been reports that SanDisk technology will be included in 90% of the digital cameras sold at Christmas, but that seems to be a conflict with the reported proliferation of SmartMedia product.
Answer:
Most digital cameras that use removable memory cards as "digital film" are designed to use CompactFlash memory cards. As of December 12, 1997, twenty-two (22) new digital cameras that incorporate a specific slot for CF cards had been introduced. Leading industry companies producing these digital cameras include Kodak, Casio, Canon, Konica, Panasonic, Epson, NEC and Yashica. At least twenty (20) more Compact Flash-based digital cameras currently are being designed and are scheduled for public introductions in 1998. SanDisk expects that many CF-based digital cameras will be sold this Christmas but does not know what percent of digital cameras sold during this Christmas season will use CF cards.
Question:
Regarding Hitachi, a SI investor understands that Hitachi makes CF but they use AND technology and not NAND technology like SanDisk. Does that mean Hitachi will only have to pay royalties for the ATA and CF trademark, but not for other technologies?
Answer:
We have patent-cross license agreements with and collect license fees and royalties from Intel, Sharp, Hitachi, Toshiba and Samsung.
Question:
Where does SanDisk stand vs. Toshiba, Intel & Sony in the flash card standard?
Answer:
Regarding the small size flash card standard, CompactFlash appears to be doing relatively well when compared with Toshiba's SSFDC and Intel's Minature Card. The most recent independent market survey of the small storage card market (that SanDisk is aware of) was conducted in Apil, 1997, by InStat, a respected market research firm based in Phoenix. InStat concluded in that survey of 1996 results that the small but rapidly growing market had worldwide sales of $12 million in 1996. CompactFlash was credited with an 83 percent market share, SSFDC with a 13 percent market share and the Minature card with a 4 percent market share. From new reports, press releases and other public information, SanDisk has concluded that CompactFlash has significantly more design wins in digital cameras, HPCS, audio recorders, medical monitors, etc. than do the SSFDC and Minature Card combined. |
