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

To: Jonathan Bird who wrote (11051)	12/17/1997 9:58:00 AM
From: Dave Chanoux	Read Replies (1) \| Respond to of 12298

"I have always thought that Q2 would be worse then Q1 anyway." There, I'm finally learning how to us this cut and paste stuff. I agree. Based on all that I have read here and on the WDC thread, things get worse until MR heads ship in profitable volume. I have assumed two Quarters of poor results. WDC projects TFI declining but continuing until 6/98 (for WDC shipments, APM shipments have to end earlier to empty the inventory pipe). This post is an example of write first, think second. Sorry. Regards, Dave Chanoux

To: Jonathan Bird who wrote (11051)	12/17/1997 11:23:00 AM
From: LK2	Read Replies (2) \| Respond to of 12298

Jon, are you guessing when you say that Crisman gives private guidance to Wall Street, without making any public statements? Or do you have any hard evidence (soft evidence would be that the analysts are able to come up with 'estimates' that later prove surpisingly accurate, when everyone on the SI threads is blindsided by the reported results). Supposedly, Crisman and APM are being unfairly punished by Wall Street because of a lack of guidance. Or at least that's the party line that people often give to defend APM and Crisman. >>>>>> It looks as though APM has given guidence for FY98 and FY99 and simply left it to the analysts to fill in the numbers for the QTRs however they choose. Crispin has done this before and didn't make a public statement. <<<<<< But it does seem strange that APM made one of its rare public statements on Dec 8, and you are saying the First Call estimate revision is dated Dec 9. Below is the public statement made by APM >>>>>>>>>>>>>> dljdirect.com Business Wire APPLIED MAGNETICS CORP. ANNOUNCES SIGNIFICANT CHANGES TO ORDER BACKLOG GOLETA, Calif.--(BUSINESS WIRE)--Dec. 8, 1997--Applied Magnetics Corp. (NYSE:APM.N) Monday announced that it has been notified by its largest customer of significant changes affecting its order backlog. The customer's changes come primarily as a reaction to the current hard disk drive oversupply in the industry's distribution channel and increasing competitive pricing pressures. As a result, the company anticipates that revenue will be down more than 30% in the current quarter (FQ 1/98) from the previous quarter (FQ 4/97). However, it is anticipated that revenue will rebound in FQ 2/98 up to 20% as compared with FQ 1/98 as drive inventories are brought into line. Unit pricing for recording heads for both the first and second fiscal quarters has decreased more than normal, reflecting the downturn in demand. As a result of these actions, the company plans to take a one-time pre-tax restructuring charge of approximately $8 million in FQ 1/98 primarily in connection with a planned realignment of offshore operations. Separately, as a result of Singapore Technologies' announced intention to liquidate the assets of its subsidiary, Micropolis Corp., the company will revise its fourth quarter and fiscal 1997 results to reflect an additional charge for bad debt related to potentially uncollectible accounts receivable and obsolete inventory. This additional pre-tax charge will amount to approximately $4.2 million. --30--LES/la* TJJ/la CONTACT: Applied Magnetics Corp., Goleta Craig D. Crisman, 805/683-5353 <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<