XMonger, if you're still here: This first tidbit's for you
I just had a lengthy talk with Kimberly Toney and got the following from her:
Re: Amber. She is now able to confirm that George Soros "has money in the fund". She cannot, however, say how much money or to what extent he either controls or directs the funds activities.
Re: 3rd Quarter: Expect no revenue growth, but the loss should not be as great.
Re: 4th Quarter (current): Based on the historical performance of the disk drive industry at this time of year, she says we can anticipate revenue growth. The company has done some restructuring (either in Q3 or Q4, I'm not sure which), and is working on lowering their break-even point.
Re: the 3" drives: They have suspended the manufacturing of these, as of maybe 3 weeks ago. They are not abandoning them, just holding off until they can afford to make them again, and focusing on what is selling now: the 3-1/2 drive for desktops.
Re: bankruptcy rumors: The company has no plans to file for bankruptcy. They do, however, need to start breaking even next year, "or else." Again, they're working on, and succeeding in, lowering break-even costs.
Re: Important goals for gaining credibility with investors and the investment community: Get more OEM contracts and release the 6.4 gig drive recently announced by end of Dec. or beginning of Jan.
Re: What sets JTS apart from the competition, now that they've suspended production of the 3" drive for laptops: the 6.4 gig drive (especially its use of mig technology, which permits a lower cost per byte). JTS expects to be producing drives with MR tech. some time in the next year.
Re: the next shareholder meeting: Expect that Tom Mitchell will answer open questions (without having to be pressured to do so). There will be a proxy before the meeting takes place.
Re: Amber's ownership percentage: it is currently 12%. In order for it to go all the way to 40% (which it can do), Amber will have to supply JTS with $75 Million.
Re: Amber's recent selling of shares (at below their cost basis, which is something like .60): Anybody's guess. JTS doesn't know.
Re: the recent 424B3 filing: The 10 Million shares being issued are related to the financing they just got from Amber or from the round of financing they got just prior to that. She said she'd get back to me. |
