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Technology Stocks : QUANTUM
QNTM 9.940-0.6%Dec 5 9:30 AM EST
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To: Rational who wrote (6668)12/13/1997 1:24:00 PM
From: Z Analyzer  Read Replies (1) of 9124
 
No, Quantum and MKE determine a build plan which can be altered up to about a month before production. Quantum is commiteed to this production. Also, Quantum has fixed costs associated with the business and needs to be selling drives to cover these costs as well. They are less volume sensitve than an assembler because MKE incurs unabsorbed manufacturing overhead if volumes are low. And of course, unlike SEG, QNTM does not need to worry about component losses except on heads.
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