WDC/Sandisk Corporation Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : WDC/Sandisk Corporation

WDC 155.45

+3.0%

Nov 25 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Marc Phelan who wrote (297)	1/2/1997 7:46:00 PM
From: Patrick Keeler	of 60323

>>> They said "operating income should increase in the fourth quarter from third quarter levels". The third quarter was .15 so we are looking for a number above that. The question of revenues staying flat is the downside. The deal with Sharp Corp should offset a little bit of that negative perhaps? <<< Increasing Operating Income does not necessarily indicate increasing Net Income. What if the "decreased visibility" led them to believe they would have more Revenues. If they spent SG&A and R&D expanses at higher levels than the previous quarter this could reduce their Net Margin percentage. A smaller net margin percentage multiplied into flat Revenue means lower EPS. IMO, why announce that Operating Income is increasing if you could've said Net Income is increasing? One bad quarter does not a dog make. However, why are Revenues slowing? Is a competitor taking away future orders. Press Release indicates that the lower priced digital camera makers are not re-ordering, or haven't yet. Could these lower priced camera makers be looking for cheaper storage than CompactFlash? If its one of SanDisks traditional competitors than that can be rectified. If its Iomega and its new n.hand technology, SanDisk could be in trouble. If digital camera makers are switching to n.hand (this is not evident in the press release), this means that the technology is suitable enough that the much lower price is luring them away. If its Intel or the Solid State Floppy Disk, SanDisk can compete.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next