Well, the inevitable rumor mill has begun: a new Yahoo poster has claimed that he "knows" that there are takeover talks going on with DSS and an unnamed suitor, with the stock going to the low 20s before the announcement, suggesting a takeover price in the 30s. The last clause is my own interpolation and wish--if a takeover does in fact occur, I sure wouldn't want it to be for less than $30-35/share, or about 3x-3.5x revenue. Actually, I have been getting a better feeling about DSS lately, even before yesterday, and even bought a little for my daughter. I continue to believe, even in the face of a depressed stock price, that if SDLT gets out by mid-summer and backward compatibility actually works (even if it takes a little longer), then the stock is a serious bargain here, and will be at least a five or six bagger over the next two years (unless Mr. Greenspam seriously blows this market and economy up).
Here is some nice news to contemplate while waiting:
Quantum's New Super DLTtape Technology Will Roll Into IBM Netfinity
Servers
MILPITAS, Calif.--(BUSINESS WIRE)--March 7, 2000--Quantum Corporation's DLT & Storage Systems Group
(NYSE: DSS) today announced that IBM plans to expand its storage backup solutions for its Netfinity(tm) Servers with
Quantum's new Super DLTtape(tm) technology.
"IBM has an extremely rigorous qualification process and provides its customers with products that meet only the
highest performance and reliability standards," said William Boles, vice president, marketing, Quantum DLTtape.
"IBM's decision to include Super DLTtape technology in their Netfinity Storage Options portfolio is a strong vote of
confidence from them for this technology."
The first generation Super DLTtape drive is expected to deliver more than 100 GB of uncompressed storage capacity on
a single cartridge and offer a native transfer rate of higher than 10 MB/sec. Super DLTtape technology is also designed
to offer backward compatibility with the existing DLTtape(tm) product family.
"With the growth of e-business, IBM Netfinity customers need storage backup solutions that offer ever-increasing
capacity and data throughput," said Robert Galush, director, Options Business Line Management, IBM Personal
Systems Group. "The addition of Super DLTtape technology will provide Netfinity customers with additional tools to
maximize productivity and expand storage capabilities to new levels."
Using breakthrough Super DLTtape architecture, Quantum will offer several generations of competitively priced tape
storage drives that range in capacity from greater than 100 GB up to one terabyte and range in transfer rates from more
than 10 MB/sec. in excess of 100 MB/sec. (uncompressed.)
"IBM's decision to offer Super DLTtape technology in its tape storage portfolio bodes well for Netfinity users," said
Bob Amatruda, senior analyst, Tape and Removable Storage at IDC. "Super DLTtape will give Netfinity users more
flexibility and performance to meet growing storage requirements."
"We are proud that IBM, a worldwide technology leader, supports Super DLTtape technology and will make it a core
part of their Netfinity tape storage portfolio," said George Saliba, vice president of Quantum's Advanced Products
Group and DSSG chief technical officer.
"The combination of unique modular technology and enhanced architecture will position Super DLTtape technology as
one of the leading backup solutions for today's e-businesses."
Like previous generations of DLTtape drives, Super DLTtape is expected to support all major systems and platforms,
including UNIX, Linux, Netware, Windows NT, Windows 98, Windows 2000, and Mac OS. As with the current
DLTtape product line, Super DLTtape drives are expected to be widely supported by all major Independent Software
Vendors (ISVs).
About DLTtape
With more than 1.4 million DLTtape drives and more than 40 million DLTtape media cartridges shipped to date,
DLTtape technology is the de facto standard for backing up and archiving business-critical data for mid-range servers
and high-end workstations.
Information on the DLTtape platform can be found at www.dlttape.com. Information about Super DLTtape can be
found at www.dlttape.com/super_dlttape.
About Quantum
Founded in 1980, Quantum Corporation (www.quantum.com) is the world's leading storage supplier in five of the
seven markets it serves: desktop hard disk drives, tape drives, network attached storage (NAS) appliances, solid state
systems and hard disk drives for the emerging personal video recorder (PVR) market.
Quantum is also the second largest supplier of mid-range tape automation systems and a leading supplier of high-end
hard disk drives. In 1999 Quantum became the first Silicon Valley company to issue tracking stock, replacing its
existing common stock with the ticker symbols DSS and HDD, which track the separate performance of the company's
DLT and Storage Systems and Hard Disk Drive businesses.
Both stocks are traded on the New York Stock Exchange. Selling its products through OEM and distribution channels
worldwide, sales for the fiscal year ending March 1999 were $1.3 billion for Quantum's DLT and Storage Systems
Group and $3.6 billion for Quantum's Hard Disk Drive Group.
Quantum Corp., 500 McCarthy Blvd., Milpitas, Calif., 95035, www.quantum.com, 408 894-4000.
The foregoing statements regarding future technology, products incorporating that technology the anticipated
performance and compatibility of the products, as well as the potential market acceptance of the products are forward
looking statements and actual results could vary. Factors which affect actual results include the success of the ongoing
technology development efforts, the ability to successfully integrate new technology into products in a cost-effective
manner, the ability to successfully manufacture and distribute new products at sufficient volume, quality and reasonable
cost, the timing of new product introductions, competition and the significant uncertainty of market acceptance of new
products.
Note to Editors: Quantum is a trademark of Quantum Corporation, registered in the United States and other countries.
DLT, DLTtape, Super DLTtape, and the DLTtape logo are trademarks of Quantum Corporation. IBM and Netfinity are
registered trademarks of International Business Machines Corporation. All other trademarks are the property of their
respective owners. |
