Two Yahoo's comments from listening to the CC:
Let me add a couple extra observations from the CC.
First, every question from the callers was preceeded by a congratulations on the quarter. Everyone thought it
was great!
Second, RDRT's shipments increased by 46% for the quarter compared to around 20% for the entire disc
drive industry. Indicates a substantial gain of market share for RDRT!
Third, estimates of revenue from GMR, by quarter, are:
2nd 5-10% 3rd 30-40% 4th 70-80%
Looks like a long term buy/hold to me. Should see $40 by year end! IMHO
Conference Call
by: MBAPhD82 (RIH/M/Belgian Congo)
2003 of 2015
Before I give you my notes from the conference call, I would like to thank everyone for their notes of
appreciation:
As far as this QTR went from the conference call:
1. Revenues up 31% from $179M to $232M.
2. HGA unit shipments up 46%.
3. Gross margins up 15%.
4. Sales for 8 different MR programs at 3.2, 3.4 & 4.3 GB.
5. MXTR, SAM, WDC account for 89% of sales.
6. Downward pricing pressures seen in December.
7. # heads/stack increased in December.
8. Record yields early in 4.3 GB MR ramp.
9. Gaining market share.
10. Good asset management, limited capital spending.
Next QTR info:
1. Seasonally weak expect flat to modest growth.
2. January appears strong.
3. Lower #heads/stack.
4. Working on 20 GMR program design-ins with 6 customers
on densities ranging from 6 to 10 Gb/in2.
5. Possible margin increase next QTR.
6. 0 tax rate expected for rest of year.
7. Significant gains in productivity(back end) still possible.
8. Relationship with WD still excellent, first time qualed
for 18GB enterprise program.
9. Working with SEG on GMR, expect bumpy road.
10. Expect competitive pricing.
11. DLT tape business is good, but less than 10% of sales.
I have an e-mail into the Company for the CC replay information and will post it upon receipt.
I would love to see this Company return to the upper $20's where I used to day trade it a few years ago. I saw Cyril speak at the Churchill Club in Silicon Valley. A real nice guy and sharp on this industry.
Later, (-8 Dennis 8-) |
