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

To: Banjoman who wrote (5835)	12/1/1997 12:57:00 PM
From: Z Analyzer	Respond to of 9124

<< Secondly, a 35% gross margin on DLT implies a very costly manufacturing process (at least $1500 per drive). Doesn't that imply that QNTM could be very exposed to new technologies with cheaper manufacturing costs (e.g. new DAT technologies), since they can't reduce their drive prices that much?>> Quantums business model for DLT is a 30 to 35% gross margin and 10 to 15% expenses. QNTM indicates they are beating the model. DAT is not in the same league as DLT. If it were easy to leapfrog DLT technology someone would have already done it. For now, there is no identifiable strong competition and very few products are in that position.