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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Pierre-X who wrote (3223)	5/5/1998 5:23:00 AM
From: shane forbes	Respond to of 9256

In a down cycle he who has the strong balance sheet (or who can raise financing!) survives. Unfortunately JTS looks like it is going, going, gone. Approx. 0.5-1.0 million drives / year now gone? True, peanuts, but something... Shakeout continues... Though this means not much in terms of volume I think as I've said before desperate (smaller Asian esp.) companies sell at any prices they can get. They hope to make a profit by going gangbusters on volume. I think JTS made a profit last q - perhaps the first time ever. It is not a coincidence that this q they appear to be going out of business. Meanwhile pricing pressures may ease (slightly?) if enough of these smaller companies go away (or are left behind technologically.) From a cnet article awhile back: Some analysts expected consolidation in the disk drive industry to lead to more rational pricing and less extreme earnings volatility. These analysts underestimated, however, the havoc that companies with relatively small market shares would wreak on pricing, according to a recent report by David Kerdell, an analyst with Oppenheimer & Company. Kathy during wdc c.call hinted that other HDD companies may not be around for very long. Certainly looks like the right forecast. ---- JTS can't meet convertible debt interest payments: biz.yahoo.com --- Wednesday April 29, 11:20 am Eastern Time JTS Corp. sees weak Q1 results SAN JOSE, Calif., April 29 (Reuters) - JTS Corp. said Wednesday it expects results for its first quarter will be below analysts' expectations. The computer hard drive company said in a statement it will not be able to make the April interest payment due on its 5.25 percent convertible subordinated debentures, due 2002, and has retained an investment banker to advise regarding alternatives. Current analysts' estimates were not available Wednesday. The company posted net loss of $11.8 million, or $0.11 per share on net sales of $73.4 million in the year-ago quarter. JTS blamed its weak results on continuing industry oversupply and low pricing in the personal computer market. JTS will continue reducing costs and expenses and is revising its business plan but will not meet its profit objectives, it said. --- Shane.