Stu,
I have taken some notes during the conference, here is some of the high lite.
For the quarter ended 9/30/98
*Units ship about 6,000,000 same as June quarter.
*Average selling price about same as June quarter and March Qt.
*Aggressive pricing within the industry has slow down.
*Demand for its product was also back end loaded. i.e. most delivery occur during the last part of the quarter.
*Shipping 4.3 Gig per 3 1/2 inch platter to both Samsung and Maxtor, WDC also.
*The restructuring charge taken place on the morning of 10/20, including people, facility and equipments. It involve 300 people out of 2000, do not know which facility will be involve, older equipment will be taken out of production.
* Out of this range of $15 to $25 million charge, they do not have a completed detail because this it has just began the early morning of 10/20, but they do anticipate about $5 million for the 300 people.
* Most disk drive mfg. are on a Just in time inventory process, so HMTT has more inventory than past, they said they will work to reduce that inventory.
* This reduction of people, equipment and facility are simply due to lack of visibility in the near future, but with this they will remain profitable, and cash flow neutral.
* See more of a linear demand of their products for this quarter and following quarter.
* Currently has 11 products in production, they said 6 products in qualification and 10 products in development.
* and they are working on a 13.5 and 18 gig per platter. and all this can be done on the existing equipment.
* Past quarter customer are Maxtor, WDC, Samsung and IOM, they range from 15% thru 35% for the products shipped. they expects WDC to increase this coming QT.
Moore's law has really taken a hold on the disk drive business.
CCW
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