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

To: Road Walker who wrote (18382)	1/23/2001 3:05:47 PM
From: J.B.C.	Read Replies (1) \| Respond to of 60323

There's a recent gap in the price movement, I hate those thing. Sell the news and close the gap in the morning, BWDIK????? Jim

To: Road Walker who wrote (18382)	1/23/2001 4:49:34 PM
From: Ausdauer	Read Replies (3) \| Respond to of 60323

John, I wouldn't want to hazard a guess on EPS. SanDisk will receive a single lump sum payment of $8 million from Lexar. I listened to a c.c. in December and the payment was made this quarter. SanDisk's other licensees pay royalties biannually. I mentioned recently that Samsung was due to reconcile the second half of the year in late October of 2000. During Q2 SNDK licensees produced substantially more flash than previously estimated leading to a substantial jump in EPS. I suspect a similar effect in Q4 as it would be very hard to imagine licensees actually slowed down manufacturing during the second half of 2000. Eli has mentioned during the last two c.c.'s that '987 (CompactFlash assembly) licensees were forthcoming. So far only TDK has been announced. And with the conclusion of the Lexar litigation we should anticipate new licensees being announced. The licensing agreements may include an initial payment at registration, followed by payments on a quarterly or biannual basis tied to unit revenues. Thus, some front-end loaded licenses could also be announced. I think this type of arrangement is relatively common in the industry (from what I have read in the past). I expect Q4 to have been a huge quarter for retail and OEM sales of SNDK's products. I think Eli planned for a big Q4 based on the inventory build up mentioned during the Q3 report. I hope that works in our favor. If 2000 full-year EPS come in at $1.29 I will be a happy camper. That is triple the $0.43 of 1999. Aus