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

To: Binx Bolling who wrote (13776)	8/9/2000 7:14:32 PM
From: Maverick	Respond to of 60323

There are two types of flash in the market. One type is flash that is used for code storage and execution - this comprises the majority of the flash market, and is manufactured by Intel Corp (INTC - 1M) and Advanced Micro Devices# (AMD - 2S), among others. This is the type of flash whose price went up significantly over the past year, but is currently expected to have a downturn in price due to over-supply. This is not the type of flash technology that FLSH uses. The other type of flash technology is NAND flash, used for data storage. The manufacturers of this type of flash are Toshiba and Samsung, and the price per MB for this technology is relatively lower. The prices for this type of flash were quite stable over the last year, and are expected to decrease at a slow and steady pace over the next few quarters. NAND flash is the type of flash technology that FLSH utilizes. Again, FLSH is not a manufacturer of flash technology, but a buyer of flash, and, in many cases, they do not forward component price reductions to customers immediately. For the company, visibility continues to be excellent, with DiskOnChip Millenium - which is a big part of FLSH's inventory - already sold out for 2000. The company is working to increase capacity this year to meet excess demand, and have already been guaranteed by Toshiba to have much higher capacity in 2001. Also, the company expects to have an additional quantity of new generation 32 MB DiskOnChip Millenium that is in advanced stage of development by FLSH and Toshiba. FLSH is also looking to add an additional fab partner to further increase capacity, and should make an announcement to that effect later this year. Moreover, the company is seeing demand continuously growing. FLSH has been experiencing more design wins, and more first-tier OEM partners are entering into production with high expected unit sales. Indeed, FLSH has set a new target to reach a sales level of $1 billion within five years. For 2001, the new generation DiskOnChip Millenium is, in actuality, 3 new design wins in the DiskOnChip line that are progressing in parallel. The FFD line is progressing well, especially with relations recently established with two of the largest telecom players in the US market. The company has also been working on two new product lines which will be ready in 2001 and 2002. FLSH has also had several first-tier design wins with large OEM's that it has not been allowed to announce. The wins, however, are reflected in the performance of FLSH and the company's new sales targets. Excerpts fr SSB.