Sorry if this has already been posted
Quantum to Take Big Charge
Quantum Corp., Milpitas, Calif., struggling with pricing pressures on
high-end computer storage devices, said it would take fiscal third-quarter
restructuring charges of $40 million. The amount includes $35 million that
the company had indicated last month it would need to write off inventory
as it migrates to next generation disk drives. On top of that, Quantum is
taking an unexpected $5 million charge to streamline its troubled
Louisville, Ky., joint venture with Japan's Matsushita-Kotobuki
Electronics Industries Ltd. Quantum said the $35 million charge will
reflect severance payments and write-offs for assets and inventory as it
consolidates its hard disk-drive business into one unit and shift production
to newer products. The additional charge will reflect restructuring moves
at the Louisville venture, known as MKQC, which specializes in
recording heads for disk drives. MKQC recently slashed 500 jobs, or
more than three-quarters of its work force, as it switched to solely a
research and development facility and ceased its manufacturing
operations. As part of the restructuring moves, Quantum will reduce its
number of high-end products offerings develop a common architecture to
reduce development costs. |
