TMTB: JPM TMT Conf Key quotes (SNDK, MU, AMAT)
SNDK
David Goeckeler, Chairman & CEO, and Luis Visoso, EVP & CFO, Sandisk
#1 — New Business Model: Transforming NAND from Cyclical to Predictable
Goeckeler: “One of the most interesting things going on in the business right now is it gives us an opportunity to change the business model. This is a business that’s been a very transactional business in the past. That’s led to a lot of dynamics, a volatile business. But we’re at a point now where we can start to change those practices with our customers. Everybody’s a winner in that process.”
“We’re trying to do really three things. Number one, get a fair return for our product — last quarter we drove 78.4% gross margin, we guided for slightly higher. Number two, get rid of the cyclicality, or at least dampen it — we’re strengthening our balance sheet, building cash reserves, putting contracts in place where when that moment happens, there’s a financial benefit to us. And number three, grow — mid- to high-teens growth. The issue is, depending on how fast you grow it, the other two get all out of whack. So it’s how do you balance these three things? And that’s what we’re doing with these new business models.”
#2 — Undersupplied Through End of 2027