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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Sarmad Y. Hermiz who wrote (8850)	10/11/2000 12:29:10 PM
From: La Traguhs	Respond to of 9256

No doubt about it, Seagate did well. (It should be noted though, that Seagate was said to be working on a build plan for 14 million units at the beginning of the September quarter) I believe that in the CC, Luczo alluded to strength in the enterprise continuing but skirted around the question about desktop PC demand, siting his reluctance to talk about customers. He also noted European sales for HDDs was as planned contrary to what the PC folks are saying about PC demand there. That's just one example of the "demand" mixed signals that needs to be sorted out, at least for me anyway. Clearly one of the best items, as you noted, to come out of the CC was the improved margins and that while pricing, according to Luczo is "aggressive", it's clear, based on those margins, it wasn't that aggressive. You'll also note that the "heads" issue was brought up. In the past Seagate was taking up to 15% of their heads from the merchant space (last quarter 6%), largely TDK/SAE. Seagate ended the quarter only taking 3% of their heads from the outside. We'll see what the others say when they report. Well, will we all miss the golden tones from Luczo lips as Seagate goes "silent?" Regards, LT