Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: Ausdauer who wrote (6526)	7/25/1999 11:57:00 PM
From: Don Hess	Read Replies (1) \| Respond to of 60323

Miscellaneous, and partly Off Topic: I don't get the chance to post as often a some of those on this most enjoyable thread, but I'm gonna play catch-up with this post: 1. It is easier to call this an "enjoyable thread" at $70 than it was at $5. 2. Being ahead of the curve but behind the cutting edge, I have a Nikon Coolpix 900 (not the much-ballyhooed 950). I love it to death. Being more of a computer geek than a photography geek, and having no plans to print prints, I enjoy even the lowest resolutions of the camera (they look fantastic on my 17" monitors), and when I want to "wow" myself or others, I indulge in the Big Picture. This does not make me a good SanDisk customer, as my CF needs are well met with the very small cards that I have. Still, if one of you would like to mail me a 64 meg card just to change my mind, I won't complain. 3. I work half-time at home and half-time at a software company in Toronto. As for the latter, there are younger people (I'm 41) around me all of the time, and their skill level and computer competency is humbling. Many of these young, extremely knowledgeable people are into CF for both digital cam and MP3 reasons, and I overhear many conversations about the next gadgets that they plan to acquire as soon as payday comes. Here's the news: they talk about capacity, capacity and capacity. They do not talk brand name nor even technology (the latter is surprising, considering the level of expertise in the bunch) and it is clear that they would eagerly jump to any medium that gave greater capacity and faster uploading. On occasion, I put in a good word for SanDisk and CF. They basically respond with a "what has it done for me lately?" kind of answer. Just as in their toys, the media that the toys use is disposable in their eyes: as soon as something even slightly better comes along, they will abandon all past allegiances. For this market, you had better be big, fast, better, and cool. 4. This is no time to start a Mac versus PC war, and I won't even begin to throw the first stone. But, hats off to Art and those who hang with their old machines. As a perk of my profession, I have the latest and fastest and best, and I do admit to liking that (and boasting about that, which is surely obvious...sorry). BUT -- I have never thrown away an old computer, and my trusty 133 remains in use as the most stable, gadgeted device in my house. True, my obscenely expensive laptop can run circles around it, but where else can I rely on Quicken, TurboTax and Duke Nukem? 5. For those that have used both pcmcia and -- what is it called -- imagemate? Which is better? I truly enjoy using the SanDisk pcmcia adapter with my CF cards, but am I missing something? 6. Am I the only one who has thought of SanDisk as one of the few truly Y2K-proof technology stocks? Now, I am not talking here about reality, but of perception and panic. In reality, many of the issues that will be unduly penalized in the next few months shouldn't be. But with SNDK, there is not only no downside, but we sidle up to the millenium in the Xmas buying season. Read: digital cams, MP3 players, etc. If this stock isn't way over $100 by October 1, I will be shocked. And the better news is that it should stay there. Pre-January logic will do the heavy lifting, post January earnings will justify the push. Okay, enough for now, and back to lurk mode. - Don

To: Ausdauer who wrote (6526)	7/26/1999 4:06:00 AM
From: Eric Ajimine	Read Replies (3) \| Respond to of 60323

I am new to this stock. Why has it risen so sharply?? I took a look at the consolidated statement below and this is what I see. I see they grew total revenues to 52 million. The net income was about 5 million. On the surface this looks good BUT... royalties were 10 million and product revenue was 42 million. This says to me that they actually LOSE money on the product they make. Thus, this company is REALLY about royalties. So far... for 1999 vs. 1998, royalties grew by 10%(Also says royalty market growing by 10%. Does this justify a P/E of 100+??? I must be missing something. Can someone explain it to me?? SUNNYVALE, Calif., July 14 (Reuters) - SanDisk Corporation Condensed Consolidated Statements of Income (In thousands, except per share data) Three months ended Six months ended June 30, June 30, 1999 1998 1999 1998 Revenues: Product $42,300 $23,480 $78,226 $48,906 License and royalty 10,249 7,881 18,459 16,557 Total revenues 52,549 31,361 96,685 65,463 Cost of sales 30,858 20,560 57,367 38,332 Gross profits 21,691 10,801 39,318 27,131 Operating expenses: Research and development 6,007 4,474 11,219 8,805 Sales and marketing 5,755 4,248 10,928 8,199 General and administrative 2,896 1,709 5,290 3,753 Total operating expenses 14,658 10,431 27,437 20,757 Operating income 7,033 370 11,881 6,374 Interest and other income, net 1,465 1,278 3,069 2,617 Income before taxes 8,498 1,648 14,950 8,991 Provision for income taxes 2,804 595 4,933 3,235 Net income 5,694 1,053 10,017 5,756 Earnings per share Basic 0.21 0.04 0.37 0.22 Diluted 0.19 0.04 0.34 0.21 Average common shares outstanding Basic 26,943 26,168 26,855 26,094 Diluted 29,514 27,834 29,414 27,928