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

To: Zeev Hed who wrote (11143)	5/19/2000 3:40:00 AM
From: The Prophet	Read Replies (3) \| Respond to of 60323

Zeev: Interesting food for thought. However, I assume operational gross margin expansion is likely, excluding new production, as yields improve quarter to quarter on transitions from 128 mbit to 256 mbit production. This margin expansion, in my view, accounted for much of the acceleration between Q399 and Q499. As for new production, I agree that margins will initially be lower. However, assuming royalties are flat to up, and that pricing is stable, even new production should add to the bottom line as margins improve on existing production. Am I in error? Prophet