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

To: slacker711 who wrote (26393)	7/15/2004 2:15:40 PM
From: Pam	Read Replies (1) \| Respond to of 60323

Hi Slacker, Is that 8:00PM EST here in the US? -Pam

To: slacker711 who wrote (26393)	7/15/2004 4:47:26 PM
From: slacker711	Read Replies (1) \| Respond to of 60323

Lexar Media Reports Second Quarter Results Thursday July 15, 4:30 pm ET Revenues of $163.2 Million Grow 100% Year Over Year FREMONT, Calif., July 15 /PRNewswire-FirstCall/ -- Lexar Media, Inc. (Nasdaq: LEXR - News), a leading manufacturer and marketer of high-performance digital media and accessories, today reported financial results for the second quarter ended June 30, 2004. Total second quarter revenues of $163.2 million increased 100% from $81.5 million in the same period last year and decreased 1% sequentially from $164.7 million in the preceding quarter. Product revenues of $162.1 million increased 110% from $77.2 million in the same period last year and increased 1% from $161.1 million in the preceding quarter. The Company reported a net loss of $18.1 million, or $(0.23) per diluted share, as compared to net income of $7.0 million, or $0.09 per diluted share, in the same period last year and net income of $9.4 million, or $0.11 per diluted share, in the first quarter of 2004. "Our second quarter results reflect greater than anticipated price reductions and price protection obligations that negatively impacted product revenues and gross margins, coupled with the inability to fully recognize the benefits of lower costs achieved during the quarter due to the timing of cost reductions, component purchases and product shipments," said Eric Stang, Lexar Media's chairman, CEO and president. "We continue to believe that market dynamics will become increasingly favorable for our business model over the second half of the year as new flash suppliers stimulate further cost reductions. In addition, we are excited about the potential created by our recently announced agreement with Kodak, and expect to begin introducing products under the KODAK brand in July." Corporate Highlights Lexar Media recently: * Announced an exclusive multi-year agreement with Eastman Kodak whereby Lexar will manufacture and distribute a full range of KODAK branded memory cards and will work with Kodak to provide consumers with a wide variety of reliable, high quality, mass-market memory cards worldwide. * Grew its total number of storefronts during the quarter to over 55,000 from approximately 48,000 in the preceding quarter. * Increased its presence in Australia and New Zealand with the opening of a regional sales and marketing office in Sydney, Australia. The Company also expanded its Australian distribution channel by naming Tech Pacific Australia PTY. and WestGroup International as distributors of Lexar Media's complete line of products and accessories. * Received recognition for its JumpDrive(R) family of USB flash drives as the "Best Digital Accessory" introduced in Europe in the past 12 months by the Technical Image Press Associate (TIPA). * Served as a sponsor of the 13th annual Microsoft Windows Hardware Engineering Conference (WinHEC) conference, at which Lexar demonstrated several uses of its JumpDrive products beyond simple storage. The Company also provided JumpDrive USB flash drives to all attendees, allowing them to configure their computers to access the Internet through the wireless LAN at the event. * Appointed Charles Levine to its Board of Directors. Mr. Levine has held a variety of senior leadership positions in telecommunications companies over the past 10 years including Sprint PCS, Octel Communications and AT&T. Financial Outlook Mr. Stang continued, "In factoring in our expectations for additional flash cost reductions in the second half and expectations for continued price declines in the third quarter and moderate price declines in the fourth quarter, our current business outlook calls for third quarter revenues of $175 million or more, with a net loss in the range of $(0.01) to $(0.05) per share. We expect to return to profitability in the fourth quarter."

To: slacker711 who wrote (26393)	7/16/2004 11:52:20 AM
From: slacker711	Read Replies (3) \| Respond to of 60323

As always, Samsung has among the most comprehensive conference calls of any company I follow. samsung.com Random (and probably not complete) notes.... - They see a rapid recovery in NAND flash market as price cuts drive new demand. - Percentage of 512MB Q2 10% Q3 20% Q4 30% - They had 34% production bit growth and 9% shipment bit growth in Q2. The difference resulted in 3 weeks of inventory vs. zero inventory in the prior quarter. They consider three weeks of inventory "optimal". - Q3 bit growth of 50%. Overall growth in '04 is now 193%. They anticipate '05 bit growth of at least 100% - Best case scenario for YoY price drop is now 26%.....worst case is 36%. 36% was their original guidance. - July order backlog quite healthy - Samsung saw more of an order slowdown from Sandisk than Lexar during Q2. - The overall NAND flash market should be very healthy until the end of '06. - They originally planned to debut MLC in an 8Gb chip....but they cant get the needed 63 nanometer equipment until the end of next year. They are now aiming for a 4Gb MLC chip in the second quarter of next year. - They anticipate having >70% of production in 90 nanometer in Q4. 2 gigabit chips should represent 65% of production. - MLC results in about a 25% bigger chip but double the density....so costs are about 30% lower. Slacker