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

To: Michael C. Woodward who wrote (1083)	10/24/1997 1:15:00 AM
From: Rex Dwyer	Read Replies (2) \| Respond to of 60323

Hello Michael, Really glad to have you here on this thread. Before I try to call the current CFO, would you have any insights into the deferred revenues that apeared on the balance sheet this last Q? It went from something like $5M last Q to $31M this Q. 1) Could this be a one time license fee? 2) Pre-payments for Flash devices? 3) One month's worth of royalties? Of course # 3 would be the best. Mike dug up an article that projected the royalty rate from Samsung to be on the order of "10%" which is really high. "...several industry sources said the sum mentioned prior to the ITC injunction exceeded 10%." If Samsung had a bunch of Flash devices sitting at some loading dock, stopped for it's patent violation, then SNDK could have received a HUGE royalty payment. Royalty would be better because it would be recurring. You help is appreciated. Rex