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

To: Road Walker who wrote (16270)	10/30/2000 8:32:12 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 60323

John, I agree with you about the retail channel. However, because of SNDK' conservative approach to these sales (not booking until these are off the retailer's shelf), the bulge should be in inventory, not AR. You put into AR product that was recognized as revenues and not paid yet, if retailers ordered big chunks for the holidays, that should show in large increase in inventories and as a large increase in Q4 sales (and probably a good chunk of AR increase then as well). Inventories have grown in line with the revenues. If SNDK just changed method of recognizing revenues (like the 99% you mentioned), then indeed, that would be accompanied by a one time change in AR. But then we will not be comparing "apples to apples" WHEN WE LOOK AT QOQ growth of the last three quarters. Zeev