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: Art Bechhoefer who wrote (18557)	1/25/2001 10:10:34 AM
From: limtex	Read Replies (1) \| Respond to of 60323

AB - Did I see that MMC sales were down in the Qtr? I thought the MMC was doing fine with Siemens, other phones and MP3 players. How on earth can the newer product volues be falling? Best regards, L

To: Art Bechhoefer who wrote (18557)	1/25/2001 2:00:09 PM
From: Road Walker	Respond to of 60323

Art, re: Note also that if other card manufacturers reduce prices and thereby gain sales in total units, SNDK is likely to get more, not less royalties. I believe (correct me if I'm wrong) that SanDisk royalties are revenue based. If the prices for 8 and 16 MB cards are declining to OEM, so would the royalties. However you are right, the units would go up to offset the price declines if SanDisk had lost some of that business. re: I can't remember if SNDK receives payment for OEM sales at the time the product is shipped or after the OEM ships its products to retailers. If the latter, then the delay in accounting for the sales would improve the results for the first quarter 2001. Does anyone know what the practice is in recording sales to OEM? Generally OEM revenues are recognized when shipped, and are paid for on regular terms. The aberration with SanDisk recognition of retailer's revenue is because the sales are guaranteed. If this is truly just an OEM inventory correction, because the OEM's feared a shortage and over ordered, then the SanDisk price correction is clearly overdone. And it could have been handled in a more delicate way in the press release and CC. Too bad we can't get some of those chips back from the OEM's and put them on the retailers shelves, where the stock is so low. John