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

To: Sarmad Y. Hermiz who wrote (8991)	1/18/2001 5:43:52 AM
From: Stitch	Read Replies (6) \| Respond to of 9256

Some Notes From the Quantum CC: Quantum HDD reported a loss of $.04 per share. Analysts were expecting an EPS loss of $0.11 Shipped 6.8 million HDDs in FQ3 OEMs represented 55% of total revenue; Distribution represented 45% Major customers: Compaq (13% of revenues), Dell (11%), Ingram Micro (10%) Results included a $6.4 million charge relating to the proposed merger with Maxtor; without that charge, net income would have been $3.1 million ($0.04 per share, diluted) A shortage of a certain component impacted production of 20GB/platter desktop programs including the Fireball lct20 & Fireball Plus AS HDDs; This resulted in lower than expected revenues & unit shipments; The supply problem has been resolved via alternative sourcing; The shortage did not affect the enterprise level segment; The component was an electronic component, not a semiconductor component Better gross margins because of a "favorable shift in product mix within the desktop and high-end lines" Shipped a record 704,000 high end HDDs; This is up 9% compared to the previous quarter & 48% year-over-year; Revenue of $191 million was generated by Quantum's high end HDD segment (up 14% sequentially & 42% year-over-year) 36GB & 73GB Atlas HDDs made up over a fifth of overall high end HDD shipments; 27% gross margins; Over the last 14 months Quantum has shipped over 3 million Atlas HDDs which operates 10,000 RPMs Will continue momentum in the high end segment with the introduction of the Quantum Atlas 10K III product -- volume shipment in CQ2; 18GB/platter & 10,000 RPM speed; This HDD will offer the highest per platter capacity & fastest seek time of any 10K drive; Acoustics will be comparable to 7,200 RPM HDDs Saw record desktop level HDD revenues of $518 million on shipment of 6.1 million HDDs; Lower unit volumes "were offset by an average unit price that increased 8% sequentially"; Higher average unit price because of "the successful volume ramp up of new, higher-capacity models, coupled with a less aggressive pricing environment"; Desktop gross margins improved sequentially to 10% compared to 3% in the previous quarter There Fireball lct20 represented 50+% of shipments during the quarter; Shipping these HDDs to 7 out of the 8 leading PC OEMs. Began shipping the 7,200 RPM Fireball Plus AS HDDs; Shipping these HDDs to 5 out of the 8 leading PC OEMs in volume; This is their first 7,200 RPM designed specifically for the performance desktop market segment; The performance desktop market segment has increased to about 25% of the entire desktop segment; 7,200 RPM HDDs made up about 25% of total shipments by Quantum Gained 2 major customers for the consumer electronics QuickView HDDs -- 1 in Europe and 1 in Japan; Shipments have began; For the year, shipped about 800,000 to 1,000,000 of these HDDs Expects merger with Maxtor to be completed by late March or April; Does not expect to report results for FQ4 because of merger Inventory levels in the channel are about 5 weeks; This is considered normal No component shortages affecting shipments at this time Cash Position = $430.2 million (31-Dec-00) vs. $611.6 million (31-Mar-00) Inventory Position = $159.6 million (31-Dec-00) vs. $122.3 million (31-Mar-00) Best, Stitch