Rich - Many thanks for your notes. Doug - To Rich's notes I would add:
Higher margins claimed for COF (Chip-On-Flex) and FCOF (Flip). This would, I hope, apply to the high volume, mid-range COF drive program for Asia, which was mentioned in the call.
They took no position on the SEG outlook.
They seemed to say high end programs for WDC and others have shown some strength. Work for QNTM seems to be developmental optical and tape, but promising.
Healey again mentioned automotive, medical, and telecommunications as non-HDD areas of promise. I thought he said non-HDD for this Q was 25%. Can anyone confirm this? (They have often stated a non-HDD target of 50%)*
I would put potential revenue at full capacity at closer to 300M, based on conversations with Al last Q. From today's call, we now know they have lots of capacity to fill. My view: this VERY enticing to an acquirer for what is, in effect, pocket change.
Healey would not rule out a share buy back. Board meets soon.
My personal view only: If no elevation in share price, then they're gobbled. This industry is BOOMING, and the players - many of them anyway - are aggressive. IMO, the players are looking for global markets; that's where the growth is. This new Asian and Mexican capacity, and the accompanying specialized technology, is hovering out there on a platter for next to nothing. Also, at some point, many shareholders and, I suspect, TDK as well are going to be willing to settle for a tragic, low ball figure for this business.
Bill
(*My PERSONAL non-HDD target - for portfolio purposes - is rapidly approaching 100%.) |
