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

To: Pam who wrote (25746)	5/2/2004 1:37:59 PM
From: Art Bechhoefer	Respond to of 60323

Pam, the guidance for royalty revenue in Q2 is $42 million or more, or about 10 percent of total revenues. Total revenues for the year are estimated at $1.6-$1.8 billion. Although the price of flash memory is dropping per megabit, the average capacity of a flash memory is rising. Without knowing the exact royalty arrangements with each of the major licensees, it is hard to predict anything more detailed than about 10 percent of revenues. This seems doable, and in fact, it's likely that royalty revenues will come in on the high side, especially if demand is strong in the second and third quarter (which will affect royalty revenues in the third and fourth quarters). In short, because SNDK management tends to give conservative guidance, and because demand continues very strong, I think there should be little trouble in achieving royalty revenues of $170 million. Art