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

To: orkrious who wrote (16216)	10/29/2000 10:13:15 AM
From: Zeev Hed	Read Replies (2) \| Respond to of 60323

Jay, I hope we do get a good answer. The way I read the improved availability of wafers from the fab is that Q4 growth will not be stranded to due to lack of capacity. It does take some 4 to six weeks to convert the finished wafers from UMC and Toshiba to final products. After all, the QOQ growth rate in the last Q was at 24% as compared to 39% and 26% in Q1 and Q2. In Q2, the QOQ growth rate of 26% was accompanied with a reduction in DOS from 73 to 61. I can understand that a huge 39% QOQ growth in the first quarter caused DOS to jump to 73, but why would a 23% QOQ growth cause a jump in DOS to 81? The total accts. receivable increased by more than product sales increase (by $20 MM more), thus this cannot be explained by a jump in the last month of the quarter. If it did, it would have ment that earlier in the quarter, we actually had sales flattening. It is difficult to discern here if the recent SNDK weakness is related to some internal events, since the market has been weak in general, but it surely make sense to pay attention to this accounting quirk. Zeev