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Technology Stocks : QUANTUM
QNTM 10.09+1.5%3:59 PM EST

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To: MKL who wrote (7406)2/26/1998 11:07:00 PM
From: Stitch   of 9124
 
MKL,

The specialized test equipment (non scope, and other generalized stuff) you refer to in your post is typically amortized over 5 years. The demands on these systems do change more rapidly but most suppliers , who also race the technical curve, have been able to provide upgrade paths. These upgrades are not cheap however, sometime requiring replacement of entire read/write channel, or positioning system, or other major suub assy of the system. Upgrades that I know have have approximated 70% of the original system cost. The amortization schedule, in my opinion, is frequently not aggressive enough but I have no guesses how much this affects the book.

Best,
Stitch
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