Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Frodo Baxter who wrote (1440)	11/7/1997 9:49:00 PM
From: Z Analyzer	Read Replies (2) \| Respond to of 9256

Amazingly, Quantum's IR today stated that the company remains very comfortable with the guidance they provided at the last conference call and that the situation is not as bad as portrayed by WDC except under 2 GB where pricing is brutal but QNTM does not participate. They still see healthy demand and are looking at the high end of the normal 5 to 8% range versus the double-digit declines WDC sees. Let's not forget that WDC is much more impacted by the low end and also is discontinuing their new recent 1.7 GB program in addition to experiencing "below historic yields" even on their established mainstay 1.3 GB/platter program. It's pretty damn unusual to see yields on an established product decline. In short, it looks as if the delayed transition to MR finally caught up with WDC. There are plenty of company specific problems here and WDC would like to lay the blame on industry conditions. To play devils advocate, let me ask you why anyone would pay $23 for WDC's disk drive business when you can buy Quantum for $20 less than DLT tape alone is worth and get their entire industry leading disk drive business for free along with it?