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

To: Mike Winn who wrote (1790)	11/23/1997 6:46:00 PM
From: Bobby	Read Replies (1) \| Respond to of 60323

<<Sandisk may have blow out earnings>>IMHO, sndk will use the deferred revenue for a quarter where they have difficulties meeting estimates. Since next quarter should be good if we have a good Christmas shopping season, they might use it for the quarter after that when there is a drop in consumer goods sales. I think the CEO alluded to this in his famous stock breaking statements last quarter - he said next qtr would be flat and the outlook after that is muddy due to the seasonal nature of their products. I think that is time to use the deferred revenues to ensure that earnings are smooth. Thats what wall street likes - predictable sequential earnings growth so that they can give the stock a nice pe multiple.