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Technology Stocks : Maxtor (MXTR) -- Ignore unavailable to you. Want to Upgrade?

To: BRAVEHEART who wrote (298)	6/13/1999 11:39:00 PM
From: CPAMarty	Read Replies (1) \| Respond to of 467

Looks like Maxtor is going to be included in the Russell 3000 russell.com

To: BRAVEHEART who wrote (298)	6/14/1999 11:06:00 PM
From: CPAMarty	Read Replies (1) \| Respond to of 467

Notes from the 6/14/1999 conference call Several factors caused shortfall in earnings this quarter; 1. Excess supply 2. Competition attempting to every regain share selected OEMs 3. Growth in the hard drive industry coming at the lower end of sub1000 PC market (single platter drives) which adversely affects pricing and mix. Very precipitous decline in OEM pricing which started in earnest in May and continues into June. Currently pricing weekly at OEMs which is quite unusual for those customers Giving OEMs forward pricing ¼ qtr out and budgetary pricing beyond that Reducing build plans to help to bring supply and demand into balance Focusing on managing cash well Units for June quarter approximately 10 percent down from last quarter as a result all of decreasing participation in the channel - not from a reduction in sales to OEMs. Intend to maintain share at strategic OEMs and will price competitively in order to do so Expediting low-cost drives development efforts and expects to ship these new low cost drives in the fourth quarter. Inventory in the channel about four weeks, which is in the upper end of MXTR's range. Reduced units due to MXTR's limiting its participation in the channel Not just the distribution channel problem - Competitors pricing aggressively to selected OEMs which MXTR must meet On schedule with qualification of 6.8GB 5400RPM second-generation GMR product and expect to ship this month. Demand good for 7200RPM drives Server program is still on target for introduction next year Exploring a number of opportunities beyond the desktop space - taking significant steps to broaden their product mix