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

To: Mike Winn who wrote (1621)	11/17/1997 1:53:00 AM
From: AB	Read Replies (1) \| Respond to of 60323

Mike, re the 10q: I think I read somewhere that the large increase in the deferred revenues increased the liabilities past a limit set in the financing agreement. Sounds like a minor adjustment to the financing agreement has been made. Anybody else know more, especially what a "quick ratio" is? Anthony

To: Mike Winn who wrote (1621)	11/17/1997 4:24:00 PM
From: Michael C. Woodward	Respond to of 60323

This message is from "the so-called former CFO of Sundisk" (at least someone on this thread referred to me as such). For what it is worth, I view Sandisk's 10q as positive since it relates to two ratios in the Trade Finance Agreement between Sandisk and its bank - Union Bank of California. The first ratio (quick) has been reduced to 1.25:1.0 from 2.5:1.0. The quick ratio is a measure of liquidity for a firm (immediate ability to pay its short-term debt). It means that Sandisk will not have to report as much cash on its future balance sheets as it currently does.This is good for Sandisk in view of their expansion plans. The formula is: Quick Assets (Cash & Marketable Securities divided by Current Liabilities. The second ratio (Debt to Tangible Net Worth) has been increased to 0.75:1.0 from 0.5:1.0. This allows Sandisk to incur more debt - also good in view of their expansion plans in SEA.