Jerome,
If true, and if M-Systems new price is followed by others, then it is, I think, a short term negative, unless, of course, SNDK planned for it in advance. Lower prices = lower revenue and lower royalty levels (they are a percentage of selling price).
But of course, lower prices are/were inevitable, and a good thing longer term, as long as costs of production go down commensurately. What we and Eli have to hope for is that CF and MM get established as standards. Low price is one of the essential ingrediants for that. In the long run, the huge volumes that will be associated with being the standard should make up for it. |
