In scouring over the new SEC filing, I found the following changes, to be found only on pages 6,7,12,13that were printed out on my printer. Teh corresponding SEC pages were 4,5,9,10. All else is same or irrelevant/trivial.
page 6 or 4: One other manufacturer is still very interested in KM, but only with MR. (IBM, Seagate are most heavily into MR?)
Maxtor had 8%, not the 5or 6% I thought before, market share as of a year ago.
"Relatively" low profit margin. Hmmm, wonder what relatively means here. 98% instead of 99? Just kidding.
Sweetheart deal lasts for only 3 years, and must begin with specific #'s of KM by 4/98 or deals off. Renewable for 3 years after that, but only more on par with everyone else.
On page 12 or 10, "co. does NOT INTEND TO LICENSE MERCHANT MANUFACTURERS OF DISK DRIVE PLATTERS." Yet this is contradictory to other places where they state they don't know if they'll manufacture KM or not. Don't know if it was a revealing slipup or an error in typing-wording. Assume its the latter.
Nuf said, see the details for yourself. KM looks increasingly like a 98 deal, with only smidgens of $ possible in 97 in comparison. Seems like other manufacturers ARE NOT beating the doors down to follow Maxtor's lead. That's what troubles me most. From all I can read, and what is NOT said, only one other manufacturer seems to have revealed they're really serious at this point, and that with MR. Sounds like this will be much more of a "ROLLING" introduction of KM into the industry rather than the immediate near 100% industry licensing I was expecting. Anyway, that's the way I read it and fill in the many blanks left in these documents. Leaves me with a lot less hope for a quick double early this year. We may be waiting till 2nd half of 97 before real price action takes place, if I'm interpreting the tea leaves right. |
