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

To: The Prophet who wrote (15308)	10/4/2000 8:28:51 AM
From: Road Walker	Read Replies (2) \| Respond to of 60323

TP, Was going through SanDisk's 10Q report, and found a few interesting things: We expect that sales through the retail channel will comprise an increasing share of total revenues in the future, and that a substantial portion of our sales into the retail channel will be made to participants that will have the right to return unsold products. We do not recognize revenues from these sales until the products are sold to the end customers. This is ultra-conservative, and may make revenues and profits trail sales performance. I've never seen it before. LICENSE AND ROYALTY REVENUES. We currently earn patent license fees and royalties under several cross-license agreements. License and royalty revenues from patent cross-license agreements were $21.4 million in the second quarter of 2000, up from $10.2 million in the same period of the previous year, due primarily to an increase in royalty revenues. Certain of our licensees report royalty revenues to us only twice a year. The increase in royalty revenues for the second quarter of 2000 included an adjustment to reconcile the estimated royalty revenues recognized in the first half of 2000 with the actual royalties reported by our licensees. In the first six months of 2000, revenue from patent license and royalties was $33.5 million, up from $18.5 million for the same period of the prior year. Revenues from licenses and royalties decreased to 15% of total revenues in the second quarter of 2000 from 20% in the second quarter of 1999. I don't quite get the bold part??? John