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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: JesseK who wrote (8667)	1/13/2000 7:22:00 AM
From: Ausdauer	Respond to of 60323

Jesse and Thread, From the Third Quarterly Report filed with SEC in 1999: During the third quarter of 1999, we accelerated the production ramp up of our 128Mbit products to meet increased demand. However, lower than anticipated yields on our 128Mbit flash memory contributed to a decline in product gross margins to 24% of product revenues in the third quarter of 1999 from 27% of product revenues in the second quarter of 1999. From the November 12, 1999 UMC press release... Sandisk's newest 0.25 micron, 256 megabit D2 (Double Density) flash chip increases the capacity of its Multimedia Cards, Compact Flash cards, PC Cards, Secure Digital Memory Cards and other Flash offerings. Ralph Hudson, senior vice president of operations for SanDisk noted, "UMC Group continues to prove to be an excellent foundry partner for SanDisk as its management and technology teams have a thorough understanding of our needs. This understanding linked with manufacturing expertise, an aggressive time-to-market mentality, and a continuous drive for process improvements makes UMC Group our number one choice in the fab business. Due to joint efforts, we are already shipping our 256 megabit D2 chips in volume. This indicates that SanDisk's production in Q1 of 2000 will increase substantially compared to Q1 of 1999 when the move to 128 Mbit chips was being contemplated. I believe Eli stated that a 3X increase (300%) in total megabyte production will be realized if manufacturing yields are satisfactory. Ausdauer