Doug,
Just 2 more quibbles, if you don't mind:
1)"...No factories exist which produce KM disks. This is a cause for delayed acceptance as no one knows what problems could occur in mass production - MAXTOR and its subs will be first...."
The keeper layer is a non-precious alloy that is applied during the sputtering stage of a disk production process that is widely used in the industry. Sputtering machines are generally capable of applying multiple layers of thin film so the incremental manufacturing cost is literally pennies per platter. Also, at the start of the year Maxtor brought online their own MaxMedia platter production unit to insure that they can produce at least part of their platter requirements. Maxtor is also HMTT's largest customer, accounting for about 50% of last quarter's total output. Still, I think you raise a good point by highlighting the problems that can crop up in any production line.
2) "...The news between MAXTOR and Ampex stated that a new pre-amp was needed and that Ampex would develop it - up to a stated dollor cost in research and development. This is another delay...."
40% of all computers are sold during the 4th quarter. Because disk drive sales track computer sales closely, i.e., 1.5 disk drives sold for every computer sold, it follows that Maxtor is working on KM with that in mind. Lotsa time for Maxtor to get its preamps to work with the heads, the keepered platters and the other components of the disk drives. And I think AXC and Maxtor agreed to co-fund (AXC for up to $250,000 and Maxtor for up to $750,000) the development of the preamplifier chip by a third party with the condition that that 3rd party would be free to sell the preamp to other drive manufacturers.
By the way, it may be useful to keep in mind that Ampex continues to have shelf equity so, under SEC rules, they are required to disclose any material facts that could affect the prospects of the company. So, NO NEWS may actually be GOOD NEWS in that things are generally going according to plan.
Like I said before, we should have more facts when the 10K comes out.
Gus |
