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

To: Art Bechhoefer who wrote (15823)	10/20/2000 3:18:07 PM
From: Road Walker	Read Replies (1) \| Respond to of 60323

Art, Depreciation? John

To: Art Bechhoefer who wrote (15823)	10/20/2000 6:16:52 PM
From: Ausdauer	Read Replies (1) \| Respond to of 60323

Art, I have to say that... ...I for one do not understand the implications of this statement: This is a bricks and mortar investment, and the costs are expensed as they occur, though there is an addition to assets and amortization. Would you please explain this to us in greater detail? Right now I interpret the Tower Investment as similar to the original USIC investment. SanDisk will pay an amount for an equity interest in the company and then will be afforded a commensurate amount of production. SanDisk will buy finished product at a negotiated price from Tower, but Tower's is responsible for running the fab profitably. Right now I don't know how the Digital Portal joint venture will work. Will SanDisk and Photo Me pony up the investment capital (from cash on the balance sheet) for the start up and then let the JV itself report out a separate P&L statement (where SanDisk and Photo Me are the two major customers), or will SanDisk have to incorporate Digital Portal operational profits and losses in their own quarterly report? How will the FlashVision JV be reported. Again, will SanDisk make capital investments using cash on hand and then allow the JV to report an independent financial report? What expenses will SanDisk report in their own earnings? Only R&D expenses? I have asked these questions before without any response. And if anyone has an accounting background it this would be a great time to contribute your expertise to the thread. Ausdauer@a_fish_out_of_water.com