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

To: T Bowl who wrote (11813)	5/4/1998 12:49:00 PM
From: Spots	Read Replies (1) \| Respond to of 12298

>> WDC is the prize everyone is after. The fact that IBM and TDK/SAE are talked about as "one of our primary suppliers" is VERY VERY bearish for both APM and RDRT And behold: Monday May 4, 11:35 am Eastern Time Western Digital , IBM in hard drive pact SAN JOSE, Calif., May 4 (Reuters) - Western Digital Corp and International Business Machines Corp (IBM - news) said Monday they signed a letter of intent on a supply and licensing agreement under which IBM would make its leading-edge hard drive technology available to Western Digital. As currently planned, the agreement calls for IBM to supply Western Digital with its areal-density giant magnetoresistive (GMR) heads and other components for desktop hard disk drives. IBM introduced the GMR head technology last November. At that time, the company said the new heads -- which are the parts used to read and write data to disk drives -- could double the storage capacity of desktop disk drives. For IBM, the deal means new revenues for its original equipment manufacturing (OEM) business, which has been one of its main sources of revenue growth in recent periods. Western Digital said its initial plans also call for using IBM technology and designs to integrate the parts into drives and said it expects to introduce desktop drives based on IBM products and designs in the first half of calendar 1999. Financial terms were not disclosed and the entire arrangement is subject to completion of a definitive agreement, the companies said.