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

To: Kurthend who wrote (6793)	12/16/1997 10:00:00 PM
From: Stitch	Read Replies (2) \| Respond to of 9124

Kurt, Maxtor is only vertically integrated insofar as the media company they are just ramping up in San Jose and starting to build in Malaysia. They dont even do their own head stack assy any more since they sold the old Penang, Malaysia facility to Conner some years back. I don't know what they plan for the China plant. I like the vertical integration model ala Seagate, Fujitsu and IBM. I think the real value in this business resides in the heads and the media (with a bow to the r/w channel designers). At least W-D with its so called "virtual" integration, but who get up to 40% of its media from in-house production, has a part of the equation. Their delay in doing the MR curve may be related to dependence on outside suppliers,... who knows. And you gotta admit that Quantum's relationship with MKE is a notch or two above the normal supplier/OEM relationship so while I like the vertical integration model I acknowledge Quantum's succcess at using a different approach. One of the reasons I am not so high on Maxtor/Hyundai is that , to date, they have not had either heads or media inside. We will see how they do with the media side during all this "strain". Gee, seems like all my posts have been too wordy lately. Am I typing too much? Feel free to say so guys. Best, Stitch

To: Kurthend who wrote (6793)	12/17/1997 7:02:00 AM
From: T Bowl	Read Replies (2) \| Respond to of 9124

Kurt - RDRT supplies Maxtor MR HSAs(not HGAs) for the 1750 and 2160 lines. They've had close relationship with Maxtor from the begining of Maxtor's MR pgm all the way back to the CrystalMax 1280. Maxtor was actually the first MR HSA customer of RDRT. That doesn't mean that Maxtor doesn't buy susps elsewhere, but from what I gather from the RDRT people, MAxtor likes HSAs. Seems to be a big trend. Everyone wants HSAs, not HGAs. RDRT hasn't release specific sales to them, but they are a top 3 customer. I think Maxtor has multiple suppliers for the 1750 and 2160. Anyone? RDRT has recently had a big push into shipping MR HSAs in the last few Qs going from 50k(Jun) to 650k(Sep) to 2mil(Dec Est). It is a difficult transition, but I don't know why. They sell as many as they can produce. Can anyone elaborate what is so tough about it? I am told the APM/Maxtor relationship isn't all that good(but I have nothing solid to back that up). HMTT has a longterm supply agreement with Maxtor(but MAxtor also had an agreement with STMD at one point and are now in a lawsuit). The biggest US based platter supplier to Maxtor is KMAG $32mil, HMTT only sold $20 to them last Q todd