Ampex Corp: Digital Storage Message Board

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Technology Stocks : Ampex Corp: Digital Storage

AMPX 10.56

-14.8%

Feb 5 3:59 PM EST

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To: HPilot who wrote (2635)	4/22/1997 8:27:00 PM
From: Wayne Umfleet	of 3256

Hugh, <<Think the drop in sales was due to not shipping new DST products until March?>> Good question. I sure wish Ampex would carve out the DST piece of their business, so that we could see how it is growing. In the past qtrly results announcements, DST sales growth was described in glowing terms: "substantial increases", "more than doubled". Although I am sure there was still good growth in DST sales, this time we get: "a decline in sales of mass data storage products to the oil exploration services industry". Apparently the growth in DST sales this time was not able to offset the substantial declines in the professional TV products, as they have in the past. And the reason DST sales couldn't make up for the poor performance of these other products could very well be explained by your point about when Ampex began shipping their new double density DST products. Look what happened to Informix! They are warning of substantial revenue drops in their latest quarter due in part to the fact that they pushed their new object-relational database technology too strongly. Customers held off buying the company's current offerings in anticipation of purchasing the new, supposedly superior-to-Oracle, database technology. I feel quite confident that this is the case with Ampex's DST sales, but I am worried about how other investors will react to the overall decline in sales. On the brighter side, and this is coming from a non-TA, it sure seems like we have very strong support at these levels. Hopefully it will continue to hold until a sustainable growth scenario develops. Best of Luck to All, --Wayne--

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