Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: JMD who wrote (16185)	10/28/2000 1:43:59 PM
From: Zeev Hed	Respond to of 60323

Mike, DSO is always important to note, also how it changes as the company matures, I could not find the July Report, but looked at the last 10Q (for the march quarter) and DSO was at 73, still "unhealthy", but the trend is getting worse, not a good sign. If they cannot recognize revenues upon shipment to their distributors (done mostly when their are "easy" return policies, or "product acceptance" clauses, which I would not expect for flash card etc.), then these shipments should be shown in their inventories bulging, these are not particularly high, they represent probably less than $100 MM in future sales, if SNDK does not "add" any value to what their fabs ship them. I would guess that there are some final assembly steps that SNDK itself carries on, then the inventories are quite rational (it is interesting to note that accts payable and inventories are almost at the same level). Zeev