Some good news:
But not for RDRT or Micropolis. Looks like the supply side is shrinking (though there may be some inventory flooding the market in the near term.)
Wednesday November 19, 7:30 am Eastern Time
Company Press Release
SOURCE: Read-Rite Corporation
Read-Rite to Adjust Fiscal 1997 Results to Reflect Liquidation of Customer
MILPITAS, Calif., Nov. 19 /PRNewswire/ -- Read-Rite Corporation (Nasdaq: RDRT - news) today announced it has been advised by Singapore
Technologies Pte. Ltd. that Micropolis, a Singapore Technologies wholly-owned subsidiary and a Read-Rite customer, will be liquidated. At the time of
Singapore Technologies' announcement on November 10, 1997, Read-Rite expected that Micropolis would have accounted for less than 1.5% of the
company's net sales for the first quarter of fiscal 1998 ending December 31, 1997.
Read-Rite has contacted Singapore Technologies regarding payment for Read-Rite's accounts receivable, inventories and other Micropolis-related exposures,
and intends to take all appropriate actions to recover these sums due. However, there can be no assurance that the company will be successful in these
actions. Accordingly, because this development occurred subsequent to the company's October 22, 1997 announcement of Fourth quarter and fiscal 1997
results but before the filing of the company's Annual Report on Form 10-K for such periods, generally accepted accounting principles require the company to
reflect the impact of these developments on the company's financial results for the fourth fiscal quarter and fiscal year ended September 30, 1997. The
company thus expects its fourth fiscal quarter and fiscal 1997 results will now include a one-time charge of up to $15 million to establish a reserve for these
Micropolis-related exposures.
Read-Rite Corporation is the world's leading independent manufacturer of recording heads, head gimbal assemblies (HGAs) and head stack assemblies
(HSAs) for disk drives and magnetoresistive beads for quarter-inch-cartridge tape drives. The company is headquartered in Milpitas, California and has
operations in Japan, Thailand, Malaysia, the Philippines and Singapore. Read-Rite employs some 23,500 people. The company's home page on the World
Wide Web cm be reached www.readrite.com.
This news release contains statements which may include forward-looking information within the meaning of Section 27A of the Securities Act of 1933 as
amended, and Section 21E of the Securities Act of 1934, as amended, and is subject to the ''safe harbor'' created by those sections. These statements
include, but are not limited to, the company's estimation that the reserve for Micropolis-related exposures will be up to $15 million. The company's actual
results for future periods could differ materially from those projected in such forward-looking information. Factors that could cause actual results to differ
include, but are not limited to, the final determination of appropriate accounts receivable, inventory and other write-downs could vary from the initial estimates.
Read-Rite undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of such statements.
SOURCE: Read-Rite Corporation |
