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Technology Stocks : QUANTUM -- Ignore unavailable to you. Want to Upgrade?

To: Rob S. who wrote (5301)	11/19/1997 5:27:00 PM
From: still learning	Respond to of 9124

Very good post Rob. Can someone list the top 5 OEMs for desktop DD and hi-end segnments. I seem to recall HP being very important for QNTM, and therefore they may have done OK -- if their OEMs are the right companies. Also, we still don't know how truly well DLT is doing --- if we did we would know more about cushion effect. Add'ly, we don't know if QNTM sandbagged by holding back some revenue last Q to cushion againts this Q -- quite likely and it's unclear if they will pull out all the stops to calm the market and attain higher valuation than the group. Finally, has MKE eliminated losses from heads, will there be an inventory charge (probably yes, but will it be $35 m)? Once we have these answers we will be reading the quarterly results anyway. My main point: If QNTM delivers on earnings this Q they will emerge as the industry leader. I do not want to email Michael Brown with this, but anyone else is welcome to do so. Now is the inflection point for Quantum to take the leadership mantle in the industr.

To: Rob S. who wrote (5301)	11/19/1997 5:31:00 PM
From: still learning	Read Replies (1) \| Respond to of 9124

Some good news: But not for RDRT or Micropolis. Looks like the supply side is shrinking (though there may be some inventory flooding the market in the near term.) Wednesday November 19, 7:30 am Eastern Time Company Press Release SOURCE: Read-Rite Corporation Read-Rite to Adjust Fiscal 1997 Results to Reflect Liquidation of Customer MILPITAS, Calif., Nov. 19 /PRNewswire/ -- Read-Rite Corporation (Nasdaq: RDRT - news) today announced it has been advised by Singapore Technologies Pte. Ltd. that Micropolis, a Singapore Technologies wholly-owned subsidiary and a Read-Rite customer, will be liquidated. At the time of Singapore Technologies' announcement on November 10, 1997, Read-Rite expected that Micropolis would have accounted for less than 1.5% of the company's net sales for the first quarter of fiscal 1998 ending December 31, 1997. Read-Rite has contacted Singapore Technologies regarding payment for Read-Rite's accounts receivable, inventories and other Micropolis-related exposures, and intends to take all appropriate actions to recover these sums due. However, there can be no assurance that the company will be successful in these actions. Accordingly, because this development occurred subsequent to the company's October 22, 1997 announcement of Fourth quarter and fiscal 1997 results but before the filing of the company's Annual Report on Form 10-K for such periods, generally accepted accounting principles require the company to reflect the impact of these developments on the company's financial results for the fourth fiscal quarter and fiscal year ended September 30, 1997. The company thus expects its fourth fiscal quarter and fiscal 1997 results will now include a one-time charge of up to $15 million to establish a reserve for these Micropolis-related exposures. Read-Rite Corporation is the world's leading independent manufacturer of recording heads, head gimbal assemblies (HGAs) and head stack assemblies (HSAs) for disk drives and magnetoresistive beads for quarter-inch-cartridge tape drives. The company is headquartered in Milpitas, California and has operations in Japan, Thailand, Malaysia, the Philippines and Singapore. Read-Rite employs some 23,500 people. The company's home page on the World Wide Web cm be reached www.readrite.com. This news release contains statements which may include forward-looking information within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Act of 1934, as amended, and is subject to the ''safe harbor'' created by those sections. These statements include, but are not limited to, the company's estimation that the reserve for Micropolis-related exposures will be up to $15 million. The company's actual results for future periods could differ materially from those projected in such forward-looking information. Factors that could cause actual results to differ include, but are not limited to, the final determination of appropriate accounts receivable, inventory and other write-downs could vary from the initial estimates. Read-Rite undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of such statements. SOURCE: Read-Rite Corporation