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Technology Stocks : Applied Magnetics Corp -- Ignore unavailable to you. Want to Upgrade?

To: Helios who wrote (10349)	11/15/1997 9:41:00 AM
From: Thomas George Warner	Read Replies (1) \| Respond to of 12298

Thought that you might like to read several parts to the latest 10Q from APM that refutes the info about a "crash program...." The Company believes that inductive head-media solutions offer its customers superior price/performance value compared to competing products utilizing magnetoresistive ("MR") heads and disks. This is due to lower prices for inductive heads and media compared to MR components and the cost effectiveness of the pico form factor used in the Company's inductive thin film disk heads on 1.7 gigabytes per 3.5" disk products. The Company's product strategy has been to extend the life of inductive thin film products in the high volume, low cost desktop segment of the market while focusing MR technology on the portable and high capacity market segments where MR technology can be better leveraged. NET SALES. Net sales of $124.1 million in the third quarter of fiscal 1997 increased 67.7% from net sales of $74.0 million in the third quarter of fiscal 1996, as a result of higher shipments of advanced inductive thin film disk head products. Inductive thin film disk head net sales of $114.6 million increased 116.6% from the same quarter in the prior year and represented 92.3% and 71.4% of the Company's total net sales for the third quarter of fiscal 1997 and fiscal 1996, respectively. By the end of fiscal 1996, the Company successfully replaced ferrite disk head production with inductive thin film disk head production. During fiscal 1997 the Company continued development of advanced inductive thin film disk head products using the pico form factor and MR disk head products. MR disk head net sales were $7.2 million for the third quarter of fiscal 1997 and represented 5.8% of total net sales. The Company's product strategy has been to extend the life of inductive thin film products in the high volume, low cost desktop segment of the market while focusing MR technology on the portable and high capacity market segments where MR technology can be better leveraged. MR shipments are currently planned to represent approximately 40% of total revenue by FQ398, by which time the Company anticipates that MR products will become more commonly used in the desktop market.