Mark,
I e-mailed Doug K this afternoon concerning some questions regarding this qtr, next qtr (ie do they now have any idead as to the cost related to the new LPF facility) and some other "basic" questions. I will let you know if Doug K. responds.
I came across the below article on APM. The story seems to confirm other reports that I have seen/read that early next calendar year the invertory glut should be about over. I am definitely interested in how/why INVX is able to still grow 20-25% this qtr over a year ago when the rest of the dd industry seems to be having problems. The only thing I believe it could be is the still on-going transition to MR. I will stop rambling, cross my fingers for INVX, and let you know if Doug K. responds.
biz.yahoo.com
Monday December 8, 4:29 pm Eastern Time
Company Press Release
Applied Magnetics Corp. Announces Significant Changes to Order Backlog
GOLETA, Calif.--(BUSINESS WIRE)--Dec. 8, 1997--Applied Magnetics Corp. (NYSE:APM - news) Monday announced that it has been
notified by its largest customer of significant changes affecting its order backlog.
The customer's changes come primarily as a reaction to the current hard disk drive oversupply in the industry's distribution channel and
increasing competitive pricing pressures. As a result, the company anticipates that revenue will be down more than 30% in the current quarter
(FQ 1/98) from the previous quarter (FQ 4/97).
However, it is anticipated that revenue will rebound in FQ 2/98 up to 20% as compared with FQ 1/98 as drive inventories are brought into line.
Unit pricing for recording heads for both the first and second fiscal quarters has decreased more than normal, reflecting the downturn in demand.
As a result of these actions, the company plans to take a one-time pre-tax restructuring charge of approximately $8 million in FQ 1/98 primarily
in connection with a planned realignment of offshore operations.
Separately, as a result of Singapore Technologies' announced intention to liquidate the assets of its subsidiary, Micropolis Corp., the company
will revise its fourth quarter and fiscal 1997 results to reflect an additional charge for bad debt related to potentially uncollectible accounts
receivable and obsolete inventory. This additional pre-tax charge will amount to approximately $4.2 million. |
