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

To: Z Analyzer who wrote (6674)	12/13/1997 2:07:00 PM
From: Rational	Respond to of 9124

Z: <<No, Quantum and MKE determine a build plan which can be altered up to about a month before production. Quantum is commiteed to this production. Also, Quantum has fixed costs associated with the business and needs to be selling drives to cover these costs as well. They are less volume sensitve than an assembler because MKE incurs unabsorbed manufacturing overhead if volumes are low. And of course, unlike SEG, QNTM does not need to worry about component losses except on heads.>> I did not follow your "No" because I had envisioned the rest of what you say as true. My statement that QNTM buys from MKE is equivalent to what you are characterizing. The key is that QNTM does not have to incur MKE's cost of production for contracts that QNTM does not sign. One-month notice is a very short notice to avoid costs. QNTM's other costs (R&D, selling and administration) will be there. Do you know if QNTM has gained market share this quarter, given that in the CC they were telling that they had record sales? Sankar