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

To: Art Bechhoefer who wrote (16655)	11/15/2000 8:47:27 PM
From: orkrious	Respond to of 60323

Oops, deleted.

To: Art Bechhoefer who wrote (16655)	11/15/2000 9:09:35 PM
From: orkrious	Read Replies (2) \| Respond to of 60323

A conservative estimate of Lexar's CF revenues for the past two years would range from about $40 million to $65 million. This raises an interesting issue, as I agree with all of the other points in your post. Let's say LEXR's revenues were $40 mil, plus $110 million for Q3, Q4, and Q1 '01. Four percent of a combined $150 mil is $6 mil, which is what they netted, and would have been exactly what they were entitled to, outside of treble damages. I don't understand why Eli didn't go for treble damages, maybe he didn't want to take the chance on not winning with a jury. He did get acknowledgement that the '987 patent is valid. He also got royalties, now and in the future. Further, he got rights to their technology. He did have to acknowledge that their design doesn't infringe '987, but no one even knows yet if it works. Maybe the settlement does make sense. Jay

To: Art Bechhoefer who wrote (16655)	11/15/2000 10:11:19 PM
From: add	Read Replies (1) \| Respond to of 60323

LEXR Royalty Rate: We are currently involved in significant and costly litigation with SanDisk Corporation, our primary competitor, in which the Federal District Court has found that some of our products, which accounted for approximately 80% of our revenues in 1999 and the first six months of 2000, infringe one of SanDisk's patents. LEXR's revs 100M in 1999 and 2000 so far. So, CF revs = 80M. 8M/80M = 10% royalty. That looks like a stiff rate to me.