<Do we actually know that SEG likes doing this themselves, or just that they do it because there was formerly no choice if you wanted to use a flex circuit. Also, you and I seem to differ in our recollection of how long SEG has used flex in the Cheetah drive. I believe well in excess of a year since the first PRODUCTION Cheetahs. If this is correct, the fact that flex is not now used in numerous (let alone ANY)other SEG drives indicates to me that this has been less than ideal. >
I think you were right. At the time Seagate went with Innovex, there was no product coming from HTCH in any reliable fashion. They even had conventional suspensions on allocation when sale were going great.
But, clearly Seagate had flex cicuits in their roadmap long before the Cheetah was announced because Innovex said they were ramping production to meet implied demand by Seagate. The actual program announcement was just a confirmation, and the fact that it was Seagate's premiere drive program only made it more clear that this was a very important decision for Seagate.
Innovex has said they are in other Seagate programs, but it makes little sense to announce them as what is really important is another customer.
Innovex is also qualified into some new chip packages as well, but they haven't announced them as they are going to mean more to futures than immediate revenues. They want to take the conservative approach. This is perhaps why they've got positive earnings every quarter despite the down turn, over $50 million in cash which is nearly half last years revenues, and they make a profit on all the FOS they sell even through the start up.
All said, TSA looks like a successful product. I just wish Hutch had Innovex's good luck, or management in getting TSA out without mortgaging the farm and blowing their horn long before they could produce results. The debt issue is very worrisome. Probably the product will justify in the long run and I think it's probably a good bet to buy HTCH after the market settles a little. I'm thinking there is good chance of positive views coming out of this quarters earnings and the follow up. I'd buy the stock once the market gets stable.
Anyway, here's the announcement of Seagate using FOS for your record.
Regards,
Mark
INNOVEX'S HIF PRODUCT QUALIFIES
FOR SEAGATE'S CHEETAH DISC DRIVE FAMILY
December 2, 1997--Hopkins, MN-Innovex, Inc. (NASDAQ:INVX) today announced that Seagate Technology, Inc. has qualified Innovex's Head Interconnect Flex (HIF) product, manufactured by Innovex's Litchfield Precision Components Division (LPC), for its Cheetah family of disc drives - the world's first disc drives to offer 10,000-rpm spindle speeds for increased data throughput and lower latency times. The HIF is an intricate flexible circuit that connects a disc drive recording head to the main circuitry of a disc drive.
"We are very pleased that LPC has been selected as a supplier for Seagate's new Cheetah 9LP low-profile and Cheetah 18 half-height disc drive programs," said Thomas W. Haley, Innovex's Chairman and Chief Executive Officer. "It is important to have our new HIF product adopted by a technology leader like Seagate."
"HIF is a cost effective solution that allows for the miniaturization and extension of recording head technology," said G. Patrick Bonnie, Seagate's senior vice president, Recording Head Technology. "It improves the overall manufacturability of the head gimbal assembly (HGA) and head stack assembly (HSA), enabling Seagate to leverage recording head complexity while reducing assembly costs. The Cheetah family is very important to Seagate and we are pleased to have Litchfield Precision Components as a strategic supplier," he added.
Innovex has ramped volume production for the new Seagate programs and is currently shipping HIFs out of LPC's existing flexible circuit manufacturing facilities in Litchfield, Minnesota. In January 1998, Innovex will begin shipping HIFs out of LPC's new, fully automated, flexible circuit manufacturing facility also located in Litchfield, Minnesota.
Innovex is a diversified manufacturer of electrical components for the computer, electronics and medical instruments markets, as well as a developer of computer software. Innovex is known world-wide for its excellence in advanced engineering and low cost manufacturing. The company's common stock is traded on the National Over-the-Counter market under the NASDAQ symbol INVX.
Seagate Technology, Inc. (NYSE:SEG) is a leading provider of technology and products enabling people to store, access and manage information. The Company is committed to providing best-in-class products to help people get their information when, where and how they want it. Seagate is the world's largest manufacturer of disc drives, magnetic discs and read-write heads, a market leader in tape drives and a leading developer of software for information availability, access and analysis. With nearly $9 billion in revenues for its 1997 fiscal year, Seagate can be found around the globe and on the World Wide Web at seagate.com.
Except for historical information contained herein, the matters discussed in this press release are forward looking statements that involve risks and uncertainties, including the timely availability and acceptance of new products, the impact of competitive products and pricing, and other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 30, 1997, and other Securities and Exchange Commission filings.
INNOVEX, INC. CONTACTS:
1313 Fifth Street South Thomas W. Haley, Chairman and CEO
Hopkins, MN 55343 Douglas W. Keller, V.P. - Finance
Telephone: 612-938-4155
Facsimile: 612-912-0714
Internet: innovexinc.com |
