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

To: Art Bechhoefer who wrote (26267)	6/29/2004 4:37:07 PM
From: JesseK	Read Replies (3) \| Respond to of 60323

Today's In Play 16:34 ET Lexar Media lowers Q2 expectations (LEXR) 8.01 +0.09: Co sees Q2 (Jun) expects revs in the range of $155-160 mln, Reuters consensus is $186 mln and sees a loss in the range of $17-19 mln. Co attributes its lower than expected results for Q2 to a number of factors: Greater than anticipated price reductions and price protection obligations during the quarter negatively impacted product revenues and gross margins, as well as, combination of the timing of cost reductions, component purchases and product sales during the quarter resulted in the company not being able to fully recognize the benefits of lower costs achieved during the quarter. This can't be good for Sandisk! Jesse Clancy

To: Art Bechhoefer who wrote (26267)	6/29/2004 5:41:39 PM
From: slacker711	Respond to of 60323

There's no doubt that new capacity will be available in the second half of the year, but there's also no data that I've seen which would show a leveling off of demand, creating a glut. Demand doesnt need to "level off". All you need is demand growth of less than the 150% or so that most are expecting for '04 bit growth. I can pretty much guarantee that sales into digital cameras wont keep up with that rate of growth. USB and camera phones sales will be critical to keeping Sandisk from an oversupply situation. Slacker