Jabil conference call indicated Quatnum DLT was huge problem (w/out naming names)
They said growth was up in all sectors (communications, pc's, etc.) except for storage, which was down 18% sequentially. Jabil's storage product is the DLT 7000. I think they are the sole source provider. Seems like a huge slowdown in DLT for Jabil. Given all of Quantum's earnings are from DLT, seems like they will have a big problem this Q/next Q. Intuitively makes sense to me as well, as indications are from everywhere (Compaq, etc.) that there is huge amount of inventory in the channel.
Here is a post in from the Flextronics (FLEXF) thread (a contract manufacturer like Jabil) that references the Jabil/Quantum relationship and the severity of the problem:
Paul my take on the jabil announcement is ,that they did'nt want to say that q
#617, patroller, Mar 17 1998 11:30PM
+Paul M. Klemencic (598 )
From: +patroller
Tuesday, Mar 17 1998 11:30PM EST
Reply # of 620
Paul my take on the jabil announcement is ,that they did'nt want to say that qnmt's dlt is
slowing so much that their growth will be flat the next 2 quarter's ,so they tried to
blame it on asia and spread the load as a favor to qntm ,however it look's like they
have cause a uproar for tomorrow and for the sector,I think the sector is still stroug
and jabil has a weak product on line due to higher than exspected inventory's for qntm
,jabil should be a heck of a good buy .jmho patroller
My opinion. |
