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

To: limtex who wrote (4146)	12/28/1998 8:49:00 AM
From: Ausdauer	Respond to of 60323

rll, Only a few days left in 1998. I wasn't expecting much of a sell off this month. I think we dipped into the high $11.00 range and peaked at $15 (albeit) briefly. I am holding my breath until the January earnings report. Maybe some people will bail in anticipation of the earnings release. I hope that you have an opportunity to increase your position if you are so inclined. I am also curious if anybody has ideas about the royalty arrangements with Samsung and Toshiba. Many of these deals were orchestrated by Cindy Burgdorf before I followed SNDK and I am curious whether or not robust SmartMedia sales over the last 3 months could bring additional royalty payments to SNDK. I believe I surmised (and posted) incorrectly several months ago that SNDK's royalty revenues were tracking CF sales. Since nobody is paying royalties on that product line my conclusions were not logical. The reason I mention it is because I recall Cindy Burgdorf suggesting that some of the deferred revenues that have been carried over are actually licensing fees which are yet to be recognized. She may have stated that a significant portion of deferred revenues were actually related to licensing fees rather than sales into the channel. I do not recall exactly her statements and the conference call was not recorded. Would it be common for a company to pay a base royalty fee and, in addition, a separate fee based on volume above and beyond a given level of sales? Ausdauer