Marty, Let's face it, yields are something a company doesn't like to talk about. I do remember when things were going well, RDRT was getting unbelievable yields, and profits.
Problem is, the yields they get on 3.2 gig programs won't be the same as 4.3 and the value to earnings in the early stages of new technology ramps are the most profitable. Also, yields will change daily. And then you have products yielding into lower rated, but still saleable catagories.
All companies are faced with good heads getting destroyed by Electro Static Discharge, ESD. This problem will continue to effect yields when making HGA's and HSA's.
I asked them the other day about their existing business for tape drive heads because I'm quite excited about the SDLT program they will be involved in. They currently make heads for older travan type tape drives. I imagine the profits are very slim on these heads, but perhaps they have yields in the high 90% level.
Also, selling into a enterprise program will again be a great step forward in their business profile.
Regards, Mark
PS I see RDRT asking $12 just now, so I guess we are really turning a corner on market perception. Let's hope this brings values back to the $15 range. I think we can only get stronger from here based on the business cycle coming for RDRT. That doesn't mean the market will lend support, but things could be worse.
PPS They say they don't have any business with Syquest, or any debt. |
