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Are these two leaders in the flash memory chip business?
I keep hearing that SSTI is growing faster,any comments would be appreciated.
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IIRC, SNDK is the market leader right now and both of them are in a tornado. Strict GG philosophy would say to buy both.

Jun-99 Sep-99 Dec-99 Mar-00
SNDK Revenue 52.5 67.5 82.7 109.4
Sequential Growth 19% 29% 22% 32%
YoY Growth 68% 111% 63% 148%

SSTI Revenue 23.0 35.1 48.3 62.3
Sequential Growth 25% 53% 38% 29%
YoY Growth 37% 94% 167% 240%

I'm a bit concerned about these figures though. Both SNDK and SSTI's Cash Conversion Cycle's have roughly doubled from June 1999 to March 2000, the Flowie for SSTI in particular is bad. Inventory and Receivable growth has not consistently remained below revenue growth in either SNDK or SSTI. Therefore, I'm somewhat suspicious of the revenue figures.

If one or both of these companies stumble, it shouldn't come as a surprise, but that might provide a good opportunity to buy in. I don't see anything that will displace flash cards in the near future (3 years or so).

BTW, I have no position in either SNDK or SSTI.

Marv
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Sorry - we need more than that. Have you done any research? What are your 'in depth' thoughts? You need to contribute to the discussion and other fools are very good at participating. I think you will find a better response when we see your research and discussion.
Don
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kenora,

Sorry - we need more than that. Have you done any research? What are your 'in depth' thoughts? You need to contribute to the discussion and other fools are very good at participating. I think you will find a better response when we see your research and discussion.

Wheee....

A little sharp tonight, aren't we?

What is your research, 'in depth' thoughts and contributions to thegenefool's question?

Just wondering,

Harry
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Take a look at a one year chart for both..


It's pretty simple..go with SSTI.
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Silicon Storage and Sandisk are going after different segments of the flash memory market. Silicon Storage primarily makes embedded flash memory chips. These things go into devices such as cell phones, PDAs,, switches, routers, and set-top boxes. They're also occasionally used as BIOS chips for computers (the memory independent of the hard drive which a computer uses to start up). SSTI's claim to fame here is there SuperFlash technology, which allows them to make cheaper chips on a cost/MB basis when compared to competitors such as Intel and AMD. However, the density of their chips is nowhere as high as that of its rivals. While Intel's already capable of making 16 MB chips, and AMD's rolling out with 8 MB designs, SSTI's stuck at the 2 MB level right now. As more advanced, data-intensive applications begin running on handheld devices, the largest market for embedded flash chips, this lack of scalability will put SSTI at a major disadvantage.

Sandisk, meanwhile, is the undisputed leader in the CompactFlash memory card market. These chips, primarily used in digital cameras, audio recorders, and MP3 players, are slightly larger than embedded flash chips, and are capable of handling much more data. Sandisk's high-end CompactFlash chip can hold 192 MB worth of information, and I believe that a 256 MB chip is on its way. Eventually, as cell phones and PDAs start handling MP3s, streaming video, 3D games, advanced operating systems, and God knows what else, and as people begin demanding an easy way of transferring all this data from one phone to another so that one phone can handle all the apps previously on another phone (Bluetooth isn't enough for this), I think CompactFlash cards will start replacing embedded chips in these devices, even if they are slightly larger in size. Aside from having by far the highest density chips in this market, Sandisk also has some IP that it licenses to its competitors for a royalty.

Silicon Storage does make CompactFlash cards, and Sandisk does make embedded chips, but neither company's particularly strong in these niches.

In my opinion, Silicon Storage might be good for the short-term due to the huge capacity constraints currently hitting flash memory manufacturers, but could be in trouble as Intel and AMD start ramping production and put to rest these problems. Sandisk, meanwhile, doesn't look like it's going to lose its market-leading status any time soon. If CompactFlash cards end up replacing embedded chips in cell phones, then this company's going to reap a huge bonanza. If they don't, then Sandisk is going to see a couple more years of manic growth followed by an eventual slowdown and the inevitable multiple contractions that always follow such slowdowns.

Hope this helps,
Eric
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<< SSTI's stuck at the 2 MB level right now>>

So how do you explain the flash card with 96 MB
written on it ? (chip displayed also)
http://www.ssti.com/compact/index.html

Anyway, I read SSTI annual report (a while ago)
and it mentions cross licence agreements between SNDK and SSTI. SSTI manufactures the fastest flash on the market with their patented technology.
I agree with the rest of what you said though. I don´t really see capacity constraints, those flashcards are going to make the floppy disk a thing of the past.

I own both SNDK & SSTI.

Guillaume
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So how do you explain the flash card with 96 MB
written on it ? (chip displayed also)

By the line that says SST CompactFlash Card in a nice large font up top. When I was talking about the 2 MB limit, I was discussing SSTI's highest density embedded flash card. And as I said before, Sandisk has a 192 MB Compactflash card out.

those flashcards are going to make the floppy disk a thing of the past

You're probably right, but for the time being, no PC manufacturers seem to be lining up to use them. At this rate, it'll still be a while before it happens. Perhaps if CompactFlash cards become more popular in cell phones, they'll start seeing the benefits.

Eric
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<<no PC manufacturers seem to be lining up to use them. At this rate, it'll still be a
while before it happens. Perhaps if CompactFlash cards become more popular in cell phones, they'll start seeing the benefits.>>

Question of cost, regarding the PC. I was not thinking about the PC, actually but rather digital cameras, handheld devices, etc.

this is looking good for SNDK:
Palm will design and market branded devices featuring the Secure Digital (SD) slot, established
by SanDisk, Toshiba and Matsushita. This technology for offering add-ons such as MP3 players
or additional storage competes directly with similar proprietary technology from Handspring and
especially Sony, both of which license the Palm operating system.
...
http://yahoo.cnet.com/news/0-1006-200-2154413.html?pt.yfin.cat_fin.txt.ne

Guillaume
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Sold my SSTI today at 92.1875 and bought NTAP which is a young EMC.nuff said!
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