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

To: Frodo Baxter who wrote (11101)	12/20/1997 7:47:00 PM
From: Mark Adams	Respond to of 12298

I concur on Depreciation being ~ 10million per Qtr, but it seems you've left out the other aspects now, ie profit. Your assumptions that they'd burn 60million in one year are based on breakeven every qtr. Based on this, I'd say it's not likely that they'd hit cash flow trouble during 98. We've already spent 1st Qtr 98 CapEx, and we've already upgraded the Goleta MR facility, with the other facility upgraded except for equipment. So we've already spent a big chunk of the transition budget. IMO, the biggest surprise out of the 10K, and most disconcerting was the increased reliance on WDC. So if WDC went belly up, that would indeed be bad news.