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

To: Robert Salasidis who wrote (7617)	3/23/1998 6:06:00 PM
From: Sam	Read Replies (3) \| Respond to of 9124

Yes, and they confirmed that it is an inventory problem rather than a real dropoff in demand (dropoff from their latest guidance, at least). ''As we approach the end of our quarter, we have seen some of our key OEM customers for DLTtape drives delay orders based on a better understanding of their inventory levels,'' said Michael Brown, Quantum's chief executive officer. ''We are continuing to see the impact of a transition in the DLTtape business from an environment of severe supply constraints to general availability, which first arose last quarter. ''This transition has resulted in decreased orders from a few key OEM customers as they continue to adjust both their own and their channel inventories. End user demand and our installed base continue to grow strongly. Combined with lower orders from OEM customers this quarter, this growth is expected to bring OEM inventories in line with normal levels by the end of the June quarter.'' The stock will still get hit tomorrow, but I think that 18 or so should hold. For the time being at least. Unless the drive bizz gets even worse.