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

To: EyeDrMike who wrote (10615)	12/5/1997 12:10:00 PM
From: Zakrosian	Respond to of 12298

Mike - Mark might be referring to this release of last month biz.yahoo.com This transition might have something to do with WDC's reduction in orders for TFI heads, but it doesn't seem to relate at all to any eliminations in contracts. I suspect it's just an announcement of charges that APM is also going to have to take, but have not yet announced. Regardless, I think the general assumption is that RDRT is significantly ahead of APM is MR production - and in fact is a major reason their quarterly eps has been significantly lower than APM's over the past year or so.

To: EyeDrMike who wrote (10615)	12/5/1997 2:06:00 PM
From: Mark Adams	Read Replies (3) \| Respond to of 12298

I see that WDC has released info that they too have internal MR capacity. Like most of the mfgs, WDC appears to keep multiple sources of components qualified (good move, IMO), and appears to be moving towards an integrated model (a bad move IMO). Aug. 25, 1997--Western Digital Corp. (NYSE:WDC) Monday announced the company's implementation of magneto-resistive (MR) head technology across its hard drive product platforms. MR head technology is featured in the mobile platform with the currently shipping 2.1 GB, 3-inch WD Portfolio hard drives, as well as in the WD Caviar 6.4 GB 3.5-inch desktop hard drive program now in pilot production. The WD Enterprise Ultra SCSI hard drives implementing MR heads will be released in Q4CY97. Applied Magnetics Corp., IBM Corp., Read-Rite Corp. and TDK Corp./SAE have been selected as MR head suppliers for the respective programs. In preparation for its MR technology utilization, Western Digital opened two new factories over the last 26 months that were constructed with the necessary equipment to produce MR products. ... A third facility, located in Chai-Chee, Singapore, has been retro-fitted to accommodate the MR product requirements. biz.yahoo.com This announcement made the Monday following WDC's first announcement/CC that competition forced revamping their business plan, including the phase out of TFI RDRT said its expected earnings and revenues for the fiscal 1998 first quarter will result from lower demand and ''significant pricing pressure'' for its advanced inductive thin film 1.3 GB per 3.5-inch disk recording head product. As a result, the company is reducing its ''build plans'' for the product. The company noted that the expected charge for the quarter will result from ''accelerating implementation of its existing strategies to transition fully'' to magnetoresistive technology. biz.yahoo.com Read-Rite Corp. (Nasdaq:RDRT - news) lost $1 3/4 to $17 1/2 after the manufacturer of disk drive heads and assemblies announced on Friday afternoon that it plans to reduce production of older thin-film inductive heads to speed its transition to magnetoresistive heads, which will result in lower-than-expected earnings and revenues for its first quarter. fool.yahoo.com This one wiped out 1/2 their earnings for the last qtr.. 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.* biz.yahoo.com ... generally accepted accounting principles require the company to reflect the impact of these developments on the company's financial results for the fourth quarter of fiscal 1997. RDRT said it expects its fourth quarter and fiscal year results now will include a one-time charge of up to $15,000,000 to establish a reserve for the Micropolis-related exposures. At the time of Singapore Technologies' announcement on November 10, RDRT expected that Micropolis would have accounted for less than 1.5% of the company's net sales for the first quarter of fiscal 1998. RDRT 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. RDRT previously reported net income of $30,464,000, or $0.62 per share, for the fourth quarter of fiscal 1997, and net income of $90,979,000, or $1.87 per share, for fiscal 1997. biz.yahoo.com