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

To: Ausdauer who wrote (3399)	6/29/1998 2:57:00 AM
From: Craig Freeman	Read Replies (1) \| Respond to of 60323

Ausdauer, this is all I was able to find in the the annual report that indicates SNDK receives royalties from specific companies and/or amounts. It does not say how much, from whom, for how long, nor for what products: "The Company currently earns patent license fees and royalties under five cross-license agreements, of which agreements with Hitachi, Toshiba and Samsung were entered into in the third quarter of 1997. SanDisk also has cross-license agreements with Intel and Sharp. License and royalty revenue from patent cross-license agreements was $19.6 million in 1997, up from $8.0 million in 1996 and $1.3 million in 1995. Revenues from licenses and royalties increased to 16% of total revenues in 1997 from 8% in 1996 and 2% in 1995." Since no specific comments is made as to royalties, Intel and Sharp could easily have royalty-free cross-licenses. As to Hitachi, Toshiba and Samsung, we don't know whether the license is specific to a certain type of chip or for all chips used to make CF cards. Based upon the above, any or all of the hypothetical statements I posted previously may actually be true ... except perhaps for the universe having been created on a Tuesday (I give that one 1-in-7 odds). Craig