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Technology Stocks : Ampex Corp: Digital Storage
AMPX 12.44-8.4%Jan 30 3:59 PM EST
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To: Daniel Schulman who wrote (79)5/24/1996 1:22:00 AM
From: Harry Tan   of 3256
 
Dan,

Ampex's patent appears to cover the derived benefits that arises from
the additional keepering thin film layer on hard disk platters. The
papers mentioned in my original post point out two benefits:

1) Higher storage density.

2) Higher signal signal strength picked up by the head.

The technology of depositing thin film materials on a disk platter of
course does not belong to Ampex. However, any drive manufacturer would
have to pay Ampex royalties if it produces or uses hard disk platters
with a keepered layer.

Keepering does not appear to be beneficial to thin film heads, the
largest independent manufacturer of which is Read-Rite (RDRT). Innovex
makes only the lead wire from the thin film head to the drive electronics.
Both are excellent presently under-valed companies that will not have
an immediate need for Keepering technology in their current businesses.
Other than the drive manufacturers with disk platter capability, platter
companies such as Komag (KMAG), Stormedia (STMD) and HMT Technology
(HMTT) would certainly be interested in this technology. Royalty income
could be substantial if all these companies adopt Keepering disks.

Gooch's original paper seems to imply that the Keepered disks he
experimented with were made by Ampex. So Ampex, with enough capital
investment could conceivably go into the platter business. However,
I doubt that this will occur, since the strength of the company is in
its research and development, not manufacturing.

I hope this answers your questions.

Harry
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