Spoke with John Hohener (CFO) briefly today.
My hope was to get a sense of the high end HDD climate, and any non-HDD news. My overall impression following the conversation is that the situation at SFLX hasn't changed much since last conference call.
However, there is a certain degree of subjectivity in my interpretations, for whatever they're worth:
SEG visibility remains uncertain; he seems to be talking Q4 for an improvement in the outlook.
SFLX is seeing weakness in other high end programs, though we didn't nail this down.
I asked about the possibility of increased business from WDC, given the concensus that they are gaining share from SEG. He said SFLX continues talks with WDC re possible new programs.
The large scanner program may be seeing some weakness due to pricing pressures at the OEM level.
I tried to keep the call reasonably short, and feel it would be best if others on the thread follow up with questions on additional non-HDD possibilities, the flip chip potential, currency matters, etc, etc. (I.e. I cannot, in one call, gain enough info to make a sound invesment decision.) I think John will take our calls and be as open as Al has been.
It's becoming clear that SFLX is a stock for the long term investor who is willing to muster the patience for what may be, JMHO, a substantial gain next year some time - after these drive issues work themselves out, non-HDD uses for flex, flip, etc expand, and/or a big fish engulfs the little. Downside is - hopefully - limited to a buck or so while we await fate.
Bill
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