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: orkrious who wrote (7592)	10/13/1999 6:08:00 PM
From: orkrious	Respond to of 60323

I spoke too soon re going up tomorrow. I think everything was very positive re next year. However, won't meet Q4 estimate of $.25. Will be higher next year than $1.15. Reason short next Q is capacity constrained. Said going to go ahead with secondary. Some guy really lit into Eli re this. I think stock is unbelievable value right here. We'll see what the Street thinks tomorrow. Jay

To: orkrious who wrote (7592)	10/13/1999 6:38:00 PM
From: orkrious	Read Replies (2) \| Respond to of 60323

CC notes Cindi Q3 third consecutive quarter of record revenue. Product revenue up 36% sequentially 66% sequential growth in MMC shipments. Now 9% of product sales ASP's flat second consecutive quarter Far East (ex Japan) grew 198% License & royalty $9.9 is down slightly. Expect flat to up slightly next several quarters Margin 35% down from 41% due to lower yields on 128mb. Yields already improved. Operating expenses 15.7 mil. 25% of total revenue, up from 14.4 last Q. Expenses to continue up to fund expansion. Eli Beg Q3 dependent on turns business. Now fourth Q booked and backlog Q1 00. Now on allocation for all products. Earthquake impact limited to Q4. 8-10% of wafer WIP scrapped. Will be impact on Q4 shipments and quarter back end loaded. Costs higher due to expetiting expenses. Pricing up significantly, but now not turns business. Have agreements on old prices generally through Q4. No impact until Q1 00. Also will have much higher margins in Q1 00. Re Toshiba. Eli veryt excited about this. Spreads technology risk at .15 and .13 micron. Gets their expertise. R&D spending in fiscal 2000 up 6-8 mil. Backend loaded. Will get some revenue benefit end of 00 from Japanese fab. He thought digital phones had the potential to be the largest application for flash, by far. Questions Mark Edelstone Cost w/ ramp of Toshiba? Not until 2001 except for 6-8 mil R&D. Offset some by higher revenue from Japanese fab. I thought a very postive answer, and I think Edelstone interpreted it as such. Question re amount of price increase. Eli wouldn't be specific but going to meet historic margins. Eli implied very healthy increase. Question re are customers stockpiling inventories in channel. Cindi answered no way. Channel is empty. Didn't catch name. Answer: Q1 00 margins will be SUBSTANTIALLY higher than Q2 99. Q2 margins ACHIEVABLE in Q4. Answer: SNDK does get royalties from Toshiba, who supplies Sony with innards of Memory Stick. Our Beloved Art Bechhoefer Status of Lexar patent suit? SNDK has asked for summary judgement. Lexar has asked court for additional 90 days to prepare (Eli parenthetically added he didn't know why they needed another 90 days when already had 1 1/2 yrs.). Court will hear in January. Secondary Financing? Eli had spent all of his time on Toshiba and earthquake. Will revisit now. Didn't catch name. Question re when will digital cameras become mainstream. Eli said when 2 megapixel cameras sell for $300-$500. Said that will be within one year, now $500-$700. Said within 5 years film cameras will be obsolete. Didn't catch name. Answer: not comfortable with $.25 Q4 consensus estimate. Will be up sequentially. Next year will be higher than $1.15. Didn't catch name. Money manager really lit into Eli re secondary at these prices. All in all, I thought it was a very good cc. Only problem is that they are going to miss Q4 number. It really is due to the Taiwan earthquake causing a capacity problem. We'll see how The Street reacts. The smart money is going to be buying on the dips. The analysts will probably be upping their Y2K estimates. We'll see what tomorrow brings. I'm a buyer. Maybe someone else can fill in the parts of the call I missed. Jay