How'd you guys let this one slip past? This is seemingly big news for RDRT to have Quantum back as a customer. I guess that's why they are up 50% in the last week? Is this news strong enough to throw another point? Regards, Mark
Wednesday August 25, 2:44 pm Eastern Time
Company Press Release
SOURCE: Read-Rite Corporation
Read-Rite Is Back at Quantum
Receives GMR Production Order for Quantum's Fireball Program
MILPITAS, Calif., Aug. 25 /PRNewswire/ -- Read-Rite Corporation (Nasdaq: RDRT - news) today announced it has received a volume purchase order to supply giant magnetoresistive (GMR) head gimbal assemblies (HGAs) at an areal density of 6.2 gigabits per square inch, or 8.7 gigabytes per 3.5 inch disk, to Quantum Corporation's Hard Disk Drive Group (NYSE: HDD - news) for their Fireball lct (low cost technology) program. Read-Rite is currently ramping production of the HGAs, with initial shipments scheduled to begin in September.
''We are very pleased to announce today, after a two year absence, we have returned as a strategic supplier to Quantum's Hard Disk Drive Group. This is a major milestone in Read-Rite's turnaround to be back at Quantum, the largest producer of disk drives for the desktop marketplace,'' said Cyril J. Yansouni, chairman and chief executive officer. ''Although the disk drive industry environment remains extremely challenging for Read-Rite in the short-term, we are encouraged by our progress on GMR technology and our expanding customer base. We are currently working with Quantum on numerous desktop and enterprise programs. We look forward to our renewed relationship with Quantum as we continue to provide our customers with leading edge technology,'' he added.
Read-Rite Corporation is one of the world's leading independent manufacturers of magnetic recording heads, head gimbal assemblies (HGAs) and head stack assemblies (HSAs) for disk drives and tape drives. The company is headquartered in Milpitas, California and has operations in Japan, Thailand, the Philippines and Singapore. The company's home page on the world wide web can be reached at readrite.com .
This news release contains statements which include forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, and is subject to the ''safe harbor'' created by those sections. These statements include, but are not limited to: the company's expectation that shipments will begin in September; and the company's expectation that its renewed relationship with Quantum will continue. The company's actual results for future periods could differ materially from those projected in such forward-looking information. Factors that could cause actual results to differ include, but are not limited to: the company may be unsuccessful in ramping HGA production for Quantum; the company may be unsuccessful in obtaining additional design wins for other Quantum desktop and enterprise programs; and the other factors described in the company's reports filed with the Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K for fiscal 1998 and quarterly reports on Form 10-Q for the first, second and third quarters of Fiscal Year 1999 ended December 27, 1998, March 28, 1999 and June 27, 1999 respectively. Read-Rite undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of such statements.
SOURCE: Read-Rite Corporation
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