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

To: Jerome Wittamer who wrote (1611)	11/15/1997 2:12:00 PM
From: Mike Winn	Read Replies (1) \| Respond to of 60323

Weekend reading: Japanese vendors back sandisk's memory-card format -- Hitachi, NEC spin silicon for CompactFlash techweb.com Check this statement: Hitachi expects to ship about half a million 64-Mbit flash chips per month by the end of this year, doubling that by mid-1998. Assuming a 64-Mbit flash chip sells for $32.00 ($4.00 per MByte) and Sandisk gets 10% royalty, that's $3.00 per chip. Let's be conservative and assume Sandisk gets $1.00 per chip. So royalty revenue for Sandisk for 64-Mbit chips will be $1.00 * 500,000 * 3 months/quarter = $1,500,000. If we add up all the OEMs (NEC, Hitachi, MEC, Samsung, Pentax, etc.) and all types of flash chips, royalty income for Sandisk could be somewhere between 5 million and 10 million per quarter or between $0.20 and $0.40 per share. This is just royalty income. Sandisk also has revenue from selling its own flash chips. Am I too optimistic or off somewhere?