QUANTUM Message Board - Msg: 2947264

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Technology Stocks : QUANTUM

QNTM 9.990

-0.4%

Dec 4 3:59 PM EST

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To: Russell McGuire who wrote (6622)	12/12/1997 9:38:00 AM
From: John A. Shaffer	Read Replies (3) of 9124

I swear all the analysts are a bunch of idiots. Kimberly Alexy of Lehman explains her reasons for the downgrade as follows: "We are lowering our rating on Quantum from a 1-Buy to a 3-Neutral on continued weakness in the HDD market, and, more importantly, reduced expections for DLT tape growth". "As expected, continued weakness in the HDD environment has led to revenue shortfall and margin erosion in the quarter. Unexpectedly, tape growth decelerated from 116% 2Q to an estimated 66% in the 3Q as a result of product transitions and a realignment of supply and demand." "More importantly, we are significantly downwardly revising our growth expectations for tape as a result of concerns surrounding a weaker demand outlook for PC server growth in 1998." "We continue to believe that the HDD environment will likely continue to deteriorate before improving and that margin and earnings pressure will persist for the group." "We are decreasing fiscal 1998 estimates from $2.26 to 1.81, reducing our fiscal 1999 estimates from $3.45 to $2.50, and reducing our rating on the shares to a 3-Neutral" I want to know where she got the info that the PC server market was slowing and that tape demand was slowing. Did she really listen to the CC? John

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