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

To: Carmine Cammarosano who wrote (7221)	2/2/1998 4:03:00 AM
From: Richard Tsang	Respond to of 9124

Checking into their latest filing it appears to me that the change in the number of shares outstanding for reporting purposes was due to the new rule from FASB (#128), requiring that the per share data be reported using "basic" instead of the previously used "primary" and "fully diluted". Since the share price dropped below conversion prices of the options outstanding, those numbers were not included for reporting as they became "anti-dilutive" for this purpose. These are the "averaged" numbers of shares I gathered from various reports: Outstanding (primary) previous Q = 146 million Outstanding (fully diluted) previous Q = 173 million Outstanding (basic) this Q = 136 milion Please correct me if I am wrong. Your question got me looking deeper into their QNTM financials. I am surprised by the cashflow generated in the last quarter. I think the management is prudent in making huge reserves to write down the inventories which surgef by more than 150 million. The management wanrned that the reserve may not be adequate if situation does not improve (inventory in-house and in the channel). However, if that does improve (as evidence is pointing to this direction lately), their reserve (100 million or so) may prove excessive and may have a chance to go back to bottom line again, IMO. I am currently not long on QNTM but will be before too long. RT

To: Carmine Cammarosano who wrote (7221)	2/2/1998 10:26:00 AM
From: Z Analyzer	Read Replies (1) \| Respond to of 9124

<<Does anyone know why the outstanding shares have gone down? 172 million last quarter down to 135 million this quarter(Dec)...>> Most Quantum shares lost 50% of their value, but about 35 million of them lost 100%. That's what happens when the disk drive business is valued at nothing and DLT at only a fraction of its true value. <g>

To: Carmine Cammarosano who wrote (7221)	2/2/1998 10:50:00 AM
From: Z Analyzer	Read Replies (1) \| Respond to of 9124

<<Does anyone know why the outstanding shares have gone down? 172 million last quarter down to 135 million this quarter(Dec)...>> Actually, to give a serious answer, I believe that the diluted share count is not used when it would result in a reduction of a LOSS per share. There were no changes in outstanding shares or the convertible debt issues last qtr. To arrive at Quantum's profit excluding charges, the share count used was 167.5 million.