Some Notes From the Quantum CC:
Quantum HDD reported a loss of $.04 per share. Analysts were expecting an EPS loss of $0.11
Shipped 6.8 million HDDs in FQ3
OEMs represented 55% of total revenue; Distribution represented 45%
Major customers: Compaq (13% of revenues), Dell (11%), Ingram Micro (10%)
Results included a $6.4 million charge relating to the proposed merger with Maxtor; without that charge, net income would have been $3.1 million ($0.04 per share, diluted)
A shortage of a certain component impacted production of 20GB/platter desktop programs including the Fireball lct20 & Fireball Plus AS HDDs; This resulted in lower than expected revenues & unit shipments; The supply problem has been resolved via alternative sourcing; The shortage did not affect the enterprise level segment; The component was an electronic component, not a semiconductor component
Better gross margins because of a "favorable shift in product mix within the desktop and high-end lines"
Shipped a record 704,000 high end HDDs; This is up 9% compared to the previous quarter & 48% year-over-year; Revenue of $191 million was generated by Quantum's high end HDD segment (up 14% sequentially & 42% year-over-year)
36GB & 73GB Atlas HDDs made up over a fifth of overall high end HDD shipments; 27% gross margins; Over the last 14 months Quantum has shipped over 3 million Atlas HDDs which operates 10,000 RPMs
Will continue momentum in the high end segment with the introduction of the Quantum Atlas 10K III product -- volume shipment in CQ2; 18GB/platter & 10,000 RPM speed; This HDD will offer the highest per platter capacity & fastest seek time of any 10K drive; Acoustics will be comparable to 7,200 RPM HDDs
Saw record desktop level HDD revenues of $518 million on shipment of 6.1 million HDDs; Lower unit volumes "were offset by an average unit price that increased 8% sequentially"; Higher average unit price because of "the successful volume ramp up of new, higher-capacity models, coupled with a less aggressive pricing environment"; Desktop gross margins improved sequentially to 10% compared to 3% in the previous quarter
There Fireball lct20 represented 50+% of shipments during the quarter; Shipping these HDDs to 7 out of the 8 leading PC OEMs.
Began shipping the 7,200 RPM Fireball Plus AS HDDs; Shipping these HDDs to 5 out of the 8 leading PC OEMs in volume; This is their first 7,200 RPM designed specifically for the performance desktop market segment; The performance desktop market segment has increased to about 25% of the entire desktop segment; 7,200 RPM HDDs made up about 25% of total shipments by Quantum
Gained 2 major customers for the consumer electronics QuickView HDDs -- 1 in Europe and 1 in Japan; Shipments have began; For the year, shipped about 800,000 to 1,000,000 of these HDDs
Expects merger with Maxtor to be completed by late March or April; Does not expect to report results for FQ4 because of merger
Inventory levels in the channel are about 5 weeks; This is considered normal
No component shortages affecting shipments at this time
Cash Position = $430.2 million (31-Dec-00) vs. $611.6 million (31-Mar-00)
Inventory Position = $159.6 million (31-Dec-00) vs. $122.3 million (31-Mar-00)
Best,
Stitch |
