I think this is the language you are looking for
<<if you have real time access to SEC, Ampex filed an amendment to an S3 registration statement. The updated information on Keepered is extremely positive. Companies are talking to them about using it with MR as tests indicate it works. Here is a selected section I copied.
As disclosed in its September 30, 1996 Form 10-Q, the Company recently
approached three manufacturers of hard disk drives to determine their interest
in concluding an agreement for the inclusion of keepered media platters in
drives to be manufactured by them. Ampex has also been approached recently by
certain other hard disk drive manufacturers with which it did not initiate
contact.
Ampex has been in discussion with several of the above companies and has
provided certain of them with drafts of proposed purchase agreements. The draft
agreements provide for prices and other terms on which such manufacturers could
obtain keepered media disk platters in such volumes as they may elect. Each of
the manufacturers to which Ampex has provided draft agreements has advised the
Company, in general terms, that it would be possible for it to launch a hard
disk drive product incorporating keepered media into volume production in 1997.
In particular, one such manufacturer has advised Ampex that it is evaluating the
initial criteria for a program that would include keepered media. This program
currently contemplates finalization of engineering design in the first quarter
of 1997. If, at that point, the manufacturer decides to put the program into
production, volume manufacturing would be expected to commence later in the
year.
Ampex has held discussions with each of the manufacturers referred to
above concerning the terms of the agreements it has proposed. Ampex has
indicated that it is prepared to offer favorable economic terms to the first
company to conclude an agreement, in recognition of its early adoption of the
technology. To date, one manufacturer has responded with detailed comments and
counterproposals. Based on its negotiations with that manufacturer, Ampex now
believes that there is a general agreement on pricing, duration and the minimum
purchase quantities that would be required for the purchaser to maintain
favorable pricing terms. However, there are also numerous open issues concerning
the structure and terms of the agreement and Ampex is not committed to accept
them or to execute any agreement with this potential purchaser.
The Company intends to continue to negotiate with several manufacturers
that could become initial customers for keepered media in order to determine the
most favorable terms that it can obtain. However, at present, Ampex has no
commitments from any potential purchasers of keepered media, and there could be
unforeseen technical or economic reasons why manufacturers would not proceed
with the technology. See "Risk Factors "- Uncertainty as to Commercialization of
Keepered Media," below. Also, there can be no assurance that Ampex will be able
to obtain terms that it considers favorable or acceptable, which could require
it to defer any such agreement or to discontinue its keepered media development
program.
The Company has previously indicated that it desires to conclude an
agreement for the purchase of keepered media before the end of 1996 because it
believes that this is approximately the timing that would be necessary for it to
generate material revenue from keepered media during 1997.
However, there can be
no assurance that any such agreement will be reached or as to the timing of
execution of any such agreement. In view of the number of disk drive
manufacturers that have expressed interest in the technology, and the recent
tests indicating that it may be possible to combine keepered media with
magneto-resistive heads as well as with inductive heads as discussed below, the
Company believes that it may now be desirable to hold discussions with
additional potential customers before finalizing the terms of an initial
agreement.
Magneto-Resistive Heads. To date, Ampex has directed the majority of its
keepered media development efforts to potential disk drive programs that employ
inductive heads, which according to published reports are used in the majority
of disk drives currently in production. However, a number of disk drive
manufacturers have expressed an intention to effect a transition to
magneto-resistive heads in all or a substantial portion of their disk drive
production in the future. In early November 1996,
Ampex, together with a disk drive manufacturer and a head manufacturer,
participated in tests of keepered media with magneto-resistive heads. The tests
included a demonstration of the activation of the keeper layer by a
magneto-resistive head of a common design. While Ampex believes that this is an
indication that keepered media may be able to address the disk drive market for
both inductive and magneto-resistive heads, it has not yet conducted sufficient
performance and other testing to ensure that this will in fact be possible in
commercial production. See "Risk Factors - Uncertainty as to Commercialization
of Keepered Media," below. The agreements which Ampex has proposed to disk drive
manufacturers would permit the use of keepered media with both inductive or
magneto-resistive heads. |
