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Technology Stocks : QUANTUM
QNTM 6.930-1.6%Jan 15 3:58 PM EST
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To: Z Analyzer who wrote (4429)10/31/1997 1:39:00 PM
From: Gus  Read Replies (2) of 9124
 
I remember how irritating it used to be to watch the head biz continue to lose money quarter after quarter obscuring the growth of DLT last year. As QNTM later revealed, they had entered into an agreement with MKE in January 1996 that MKE would assume control over the head biz once QNTM demonstrates a certain level of progress. When QNTM reaced the preset level of progress earlier this year, MKQC was formed.

Perhaps, there is a similar agreement with MKE? Not too farfectched actually, since QNTM has been highlighting the fact that MKE has to expand its disk drive assembly and heads manufacturing facilities next fiscal year to scale with annual growth. Also, MKE assembles the QNTM disk drives at 2 plants in Japan which are among the most highly automated assembly operations in the world. One normally doesn't expand those kind of facilities on a piecemeal basis.
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