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

To: Don Earl who wrote (10572)	12/4/1997 6:53:00 AM
From: Don Earl	Read Replies (1) \| Respond to of 12298

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To: Don Earl who wrote (10572)	12/4/1997 7:44:00 AM
From: T Bowl	Read Replies (1) \| Respond to of 12298

Don - <<What % of APM income comes from WDC?>> APM does not provide that info on a Q/Q basis. The 10ks will guide you for the FYr. I got my "approx 90%" from a RDRT guy(real reliable huh?) The 97 10k has not been filed. That could help guide us. Hopefully Crisman can shed some light on it. <<What revenue produces a flat quarter for WDC?>> It's not rev that is dropping to produce the flat Q, it's falling GMs. WDC dropped prices all the way down to around 10% GM before they had to start cutting production - they have said they will not sell DDs at a loss. <<WDC is taking an .85-.95 per share one time charge against earnings this quarter>> That would be $0.00 for the Q and THEN the one-time charge. << I don't own any WDC. I own APM.>> My point was that APM will closely track WDC earnings. Look at the GMs from both companies during the last few Qs(for the sector even). For APM I think you'll see a big drop in GMs this Q. They dropped >5% last Q due to "lower on the newly qual'd MR pgms and 1.7GB TFI products." GMs are a key here IMO. Have they solved those yield problems? Their 1.3GB TFI heads were the big $$ for them - It was supposed to be the big family for WDC this Q, If WDC cut back production on them APM will suffer greatly. I do not know what products were cutback. Certainly it was the 1.7GB, but I do not know about the 1.3. Another thing I noticed last night was that in the Oct PR they mentioned qual on 2 MR pgms in the Sep Q "a high end and a portable" That portable has now been canceled. I think the high end was a Micropolis product.(Anyone know what the high end MR head was for?) todd BTW, the strange bird comment was not meant to be offensive. I too enjoy a good debate. It forces me to justify my moves.