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To: Gerald Walls who wrote (2075)	1/16/1998 3:32:00 PM
From: Mark Oliver	Read Replies (1) \| Respond to of 3029

I was about to post the same thing. I guess I would add that QNTM missed estimates by a penny. Quantum Corp. (QNTM) 19 3/4 -5/8: disk-drive maker posts a fiscal 3Q operating net of $0.29 a share, a penny shy of the First Call estimate, vs year-ago net of $0.36 a share; revenues rose 2% to $1.5 bln..... And that there were other comments from QNTM's report: ''This quarter has been a difficult one for the hard disk drive industry with lower overall demand than anticipated resulting in excess inventory in the marketplace and significant pricing pressure,'' said Michael Brown, Quantum's chief executive officer. ''In the high-end part of the hard disk drive market, demand has not picked up sufficiently to absorb the excess inventory in the distribution channels,'' said Brown. ''Although our loss in that part of our business increased from the prior quarter, we were able to increase both unit shipments and revenue associated with our high-end drives. We have the opportunity to improve our performance in the high-end part of the business as market conditions return to normal and we begin to ramp our new generation high-end products in 1998.'' It's hard to tell what to think from all this. It surely is no sign that things have corrected, but it is encouraging that unit volumes are up. Still, why increase units shipments when channel inventory is still too high? Is this all a reflection of the Build to Order format and the adjustments as the holders of inventory shift from OEM to manufacturers and distributors? Regards, Mark