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 (20242)	5/3/2001 10:43:59 PM
From: Ausdauer	Respond to of 60323

"Next Generation Digital Film" "The superior high-resolution image quality delivered by Olympus digital cameras demands a digital film capable of writing data as fast as possible," said Yusuke Kojima, General Manager of Olympus Optical Co., Ltd. "Olympus is pleased to integrate Lexar Media's superior technology into our digital film products. Today's digital cameras demand a lot from digital film. Lexar Media's technology is critical for optimizing digital camera performance." Olympus becomes the fourth licensee of Lexar Media's patents. Sony was the first licensee of Lexar Media's technology for adaptation in Sony's Memory Stick format. SanDisk was the second licensee of Lexar Media's patented technology for the production of SmartMedia(TM) products. The third license is with Samsung Electronics and covers SmartMedia as well as other flash products. Financial details of the agreement are confidential. I wonder if Olympus and Lexar are developing a new SmartMedia controller to be incorporated in some higher end digital cameras. Olympus already announced they are de-emphasizing their presence in the lower-end market. I can't see how there is room for another digital film standard at this point, so the next generation digital film media must be a SmartMedia upgrade. Recall that Toshiba is the originator of SmartMedia and there is no on-board controller. If makes me wonder if Olympus giving up on the idea of an integrated SRAM buffer in favor of a new flash controller to boost camera performance? Aus

To: Art Bechhoefer who wrote (20242)	5/3/2001 11:42:10 PM
From: Ausdauer	Read Replies (3) \| Respond to of 60323

Lexar Media C.C. ===> Q1 was a strategic quarter Inventory Still about $16 million in inventory to move. This includes some residual infringing products which carry a 4% licensing fee to SanDisk. Probable negative product margins in Q2 Sony licenses for Memory Stick* $250,000 from Sony Memory Stick license fees in Q1 Patent Licenses* $3 to $4 million in license royalty revenues in Q2 of 2001 (mostly Samsung) conservatively $12 million in total royalty revenues in all of 2001 (maybe $16 to $17 million) Profitability by end of 2001 flash purchased on consignment (Samsung deal will insulate from flash pricing fluctuations) sale of controllers to card assemblers and OEM's(50% gross margin) Samsung/Olympus/Sony royalty & licensing (100% gross margin) phase out OEM customers (high revenue/low margin) Four major new partners signed (Samsung excluded) to be announced in May Samsung + Olympus + ??? + ??? + ??? (could these be camera manufacturers?) [someone interested in USB enabled technology and an embedded flash manufacturer were mention in the Q and A.]* Aus