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Technology Stocks : Western Digital (WDC) -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (10812)	10/15/2003 8:09:17 PM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 11057

Sam, there are other issues. 1- At every CC, Matt and Arif are asked to comment on yields. And they refuse. My point is that 70% yield at this time may be an improvement for this product at this stage in its life cycle. That is why a credible report will discuss trend, as well as single point. 2- What heads go into 200 GB drives ? My impression has been that all along, the heads are 80 GB heads that perform at only 67 GB rate. So bad yield is in the plan already. 3- will the alleged low yield result in any fewer shipments of drives, or it just an internal issue with no external effects ? 4- since the rdrt equipment can supply much more than WDC's needs, does it matter that yields are only 70%. I thought wdc now has huge over-capacity. 5- WDC makes a mix of 40 GB and 67 GB and 80 GB, with flexibility as to what heads to use. Isn't this flexibility their advantage in the sense that if yields are poor in a product, they can keep selling drives while they fix the problem ? 6- If this guy was so eager to help the masses, how come he didn't revise his earnings forecast ? Or was his purpose to just bail out the shorts who had been relying on his previous downgrade in July ? My guess of the answers is that this issue will not be very severe. Gottfried told me that occasional bouts of low yield are very common, and they are part of every product cycle. Sarmad