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

To: Sam who wrote (1425)	11/7/1997 9:39:00 AM
From: GuyNixon	Read Replies (1) \| Respond to of 9256

WDC just pre-announced. Well, at least it's not in the red. However, the last part of the comment is interesting. Does it mean APM will get hurt more than RDRT? >>>Data storage products maker Western Digital Corp <WDC.N> said Friday it expects its second fiscal quarter ending December 27 would be $0.20 to $0.30 per share -- well below current analysts' expectations of $0.83 per share. The company said its second quarter results would be impacted by "significantly higher-than-normal competitive pricing pressures" in the desktop hard-drive business, as well as product mix and cost issues associated with the company's last desktop drives with thin film inductive head technology. However, unit volumes for the quarter are still expected in the previously stated range of 7.3-7.5 million, reflecting continued strong demand for its desktop and enterprise hard drives, it said. The company said it is considering taking potential non-recurring charges in the range of $15 million to $30 million. The plan stems from the company's phase-out of thin-film head products in favor of hard drives featuring newer magneto-resistive heads. The ramp-up of its new 2.1GB/platter desktop platform is proceeding ahead of plan and its new 9.1GB Enterprise drive moved to volume production this week as planned, it said.

To: Sam who wrote (1425)	11/7/1997 10:51:00 AM
From: roger held	Respond to of 9256

Sam, No such luck. Pricing pressures are across the board. Especially will be bad in new, highly competitive platforms such as 2.1GB/platter desktop and 1.8GB/platter high end. However, QNTM is shielded somewhat by DLT but they will lose more money on DD this quarter. However, SEG may be looking up. Desktop volume is strong and SEG and IBM are loaded for bear. Hopefully, we'll see SEG at least make earnings this time (pray for a little upside???). What about the possibility that this business may turn into a TWO horse race (SEG, IBM) with accompanying small players? Regards,