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

To: orkrious who wrote (13093)	7/19/2000 8:24:10 PM
From: Sam	Read Replies (1) \| Respond to of 60323

Jay, This quote deserves to be repeated: << I can't believe how many people don't understand our business. It is crazy. I just listened to the SSTI call saying that 80% of their sales came from 2Mbit flash. We sell 256Mbit flash. Toshiba, Sandsik, Hitatchi, and Samsung are the only companies that make this, and all of the other flash capacity being added isn't going to alleviate the situation. >> That was pretty close to his exact words, though he went on and was even more emphatic about how little people differentiated between Sandisk's flash and the flash that INTC, AMD, ATML, SSTI, and others sell. I think, but am not sure that the next analyst who spoke apologized for his own ignorance on that point. Some people will have to go do some homework. Eli said something like the "ignorance and misinformation about our company and the whole sector is unbelievable" (his emphasis). One correction on forward guidance on royalties: they were guiding to $17m as a baseline (up from their former guidance of $12m), but they added, "$17m or more" (their emphasis). Also, FWIW, CF was 43% of revenue, MMC was 22%. 50% of rev was OEM, 25% was distribution, 25% was retail. I wish Mr. Market would cooperate, and let us get to where we deserve to be. We'll have to see what Mr. Greenspan says tomorrow. But, for any Sandisk employee who happens to read this, let me add my congratulations to the many congrats of the analysts who must now do their homework: Great quarter! Gratefully, Sam P.S. Jay, you are definitely correct on the royalty issue; there are two components to it, fixed and variable. There are apparently volume incentives/discounts, once a certain volume has been reached, the level drops. They said nothing that I heard about royalties ending this year.