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Strategies & Market Trends : APMP (formerly APM) -- Ignore unavailable to you. Want to Upgrade?

To: Brian Lempel who wrote (9394)	12/18/1997 11:06:00 PM
From: AlienTech	Read Replies (1) \| Respond to of 13456

Just amazing that we knew about this one before the CEO.. Applied Magnetics Corp. Announces Significant Changes to Order Backlog GOLETA, Calif.--(BUSINESS WIRE)--Dec. 8, 1997--Applied Magnetics Corp. (NYSE:APM - news) 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.