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

To: Art Bechhoefer who wrote (19460)	3/6/2001 4:21:32 PM
From: limtex	Read Replies (2) \| Respond to of 60323

AB - the costs for that inventory have already been accounted for in the earlier quarter. Thus, if total sales are less than for the previous quarter, total profits may hardly change. Surely inventory is accounted a the lower of cost or net realizeable value so the costs of inventory held at 31 Dec were not included last qtr as is normal in accounting. Thus if revnues decrease for this qtr the earnings will be reduced by the gross margin on that reduction on top of any further gross margin degradation as a result of discouting. Zeev pls your confirmation. Best regards, L