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To: Ausdauer who wrote (1058)	7/22/1999 4:58:00 PM
From: Duker	Respond to of 1989

More Great Results: Maxtor Reports Results for Second Fiscal 1999 Quarter Thursday July 22, 4:32 pm Eastern Time Company Press Release SOURCE: Maxtor Corp. MILPITAS, Calif., July 22 /PRNewswire/ -- Maxtor Corp (Nasdaq: MXTR - news) today reported results for its second fiscal 1999 quarter consistent with the company's statements in its earnings pre-announcement on June 14, 1999. Revenue was $524.6 million for the second fiscal 1999 quarter, compared to $531.3 million in the second quarter of fiscal 1998. The company's net loss was $30.9 million in its second fiscal quarter, including a non-operating gain of $22.1 million from the sale of stock related to a former subsidiary. Based on a share count of 103 million, the net loss per share was $0.30. Excluding the non-operating gain, the net loss was $53.0 million or $0.51 per share. The company had previously stated it expected to report sequentially lower revenue and a loss of $45 to $55 million from operations. These results compare to net income of $5.4 million and net income per share of $0.12 based on a share count of 45 million in the second quarter a year ago. ''As we stated in June, the pricing environment deteriorated significantly during the quarter,'' said Mike Cannon, Maxtor's president and CEO. ''Our unit shipments declined from the prior quarter as expected, as we intentionally limited our participation in the distribution channel. Despite our loss for the quarter, we managed cash well, increasing our cash and short-term investments to $298.6 million from $280.4 million at the end of last quarter. ''In addition to managing cash, other key areas of focus were executing product qualifications and production ramps for our new products and strengthening relationships with our key OEM customers,'' Cannon continued. ''Our DiamondMax(TM) 6800 is qualified and shipping in volume to our largest OEM customers, and we are pleased with market acceptance for our 7200 RPM products.'' Maxtor's sales to OEMs represented 84% of the company's total sales for the second quarter, and Dell and IBM each represented more than 10% of Maxtor's sales for the quarter. This release contains forward-looking statements concerning the hard disk drive industry and Maxtor's execution. These statements are based on current expectations and are subject to risks and uncertainties which could materially affect the company's results, including, but not limited to, market demand for hard disk drives, market acceptance of the company's products, the company's ability to execute future production ramps and utilize manufacturing assets efficiently, changes in product and customer mix, pricing trends, and actions by competitors. These and other risk factors are contained in Maxtor's Registration Statement on form S-3 as well as in its periodic reports filed with the SEC. About Maxtor Maxtor is a leading supplier of hard disk drives for desktop computer systems. The company has been the fastest growing supplier of hard disk drives for the desktop personal computer market, more than doubling its market share over the past one and a half years. The company's current products include the 5400 RPM DiamondMax 4320 and 6800, designed for mainstream desktop applications, and the 7200 RPM DiamondMax Plus 5120 series of drives which are designed to meet the needs of higher performance systems. More information about Maxtor and its products can be found at maxtor.com or by calling toll-free (800) 2-MAXTOR.

To: Ausdauer who wrote (1058)	7/22/1999 4:59:00 PM
From: Duker	Read Replies (1) \| Respond to of 1989

MXTR Impressive Financials: MAXTOR CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except share and per share amounts) (Unaudited) Three months ended Six months ended July 3, June 27, July 3, June 27, 1999 1998 1999 1998 Total Revenue $524,588 $531,265 $1,206,178 $1,080,882 Total Cost of revenue 508,251 468,789 1,103,428 956,151 Gross profit 16,337 62,476 102,750 124,731 Operating expenses: Research and development 48,585 36,724 95,425 70,096 Selling, general and administrative 22,199 18,392 42,119 34,315 Stock compensation expenses 632 (4,788) 1,497 9,908 Total operating expenses 71,416 50,328 139,041 114,319 Income (loss) from operations (55,079) 12,148 (36,291) 10,412 Interest expense (2,941) (8,768) (6,621) (17,536) Interest and other income 3,558 2,125 8,455 2,399 Gain on sale of investment 22,090 -- 22,090 -- Income (loss) before provision for income taxes (32,372) 5,505 (12,367) (4,725) Provision for income taxes (1,500) 89 1,500 178 Net Income (loss) $(30,872) $5,416 $(13,867) $(4,903) Net income (loss) per share - basic $(0.30) $ 164.02 $(0.14) $(202.72) Net income (loss) per share - diluted $(0.30) $0.12 $(0.14) $(202.72) Shares used in per share calculation -basic 103,046,181 33,020 100,979,476 24,186 -diluted 103,046,181 44,801,870 100,979,476 24,186 MAXTOR CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) July 3, December 26, 1999 1998 (Unaudited) ASSETS Current assets: Cash and marketable securities $298,550 $227,629 Accounts receivable, net 211,281 317,758 Inventories 177,863 153,192 Prepaid expenses and other 38,546 45,198 Total current assets 726,240 743,777 Net property, plant and equipment 150,359 108,290 Other assets 8,062 11,346 Total assets $884,661 $863,413 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings, including current portion of long-term debt $5,004 $5,261 Accounts payable 445,028 427,737 Accrued and other liabilities 98,757 115,937 Total current liabilities 548,789 548,935 Long-term debt 85,023 145,046 Total Liabilities 633,812 693,981 Total Stockholders' Equity 250,849 169,432 Total Liabilities and Stockholders' Equity $884,661 $863,413 SOURCE: Maxtor Corp.