Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Stitch who wrote (3173)	5/13/1998 3:45:00 AM
From: Dennis R. Duke	Read Replies (3) \| Respond to of 5058

I had a great conversation with a John T. Kurtzweil this evening. He spoke to a Solomon Smith Barney conference in NYC today. After my conversation with RDRT's CFO I am is bullish on RDRT. The following are some interesting highlights: 1) Expect this Q to be at the high side of street estimates. 2) Orders are firming up very well for the company. 3) New R&D hires are already hitting the ground running and assisting in daily operations at this time. [They were hired more to execute than develop is the impression I was left with. That could mean that product is in R&D waiting for testing and launch, but that is my guess based on the R&D spending.] 4) Company, plant and engineering morale is up based on the new hire wins and future out look. 5) Expect a 2.8 qualification announcement within two weeks. 6) Expect a 3.4 qualification announcement before the end of June. 7) Very much alive in the Samsung (as a second to TDK), Maxtor (finalist for 3.4, with IBM out of the running. IBM getting a majority of 2.8 business), Quantum and Seagate (IBM out of the running for these latter two, also. Both 2.8 and 3.4 as I understand it.). 8) There are three divisions of WDC. Server, high-end desktop and sub $1,000. IBM's deal addresses only the middle one, and it is still open for discussion whether RDRT get a piece of that. The first and third lines are totally open for RDRT to go after. The server line is one where WDC directly competes with IBM, so a sole supplier is very unlikely with a competitor, was the impression I received. 9) At the end of July production changes will reduce turn around time of product by 45%. Dropping production from around 12 weeks to approximately 7 weeks. (Less inventory, less cash need, higher turns, reduced overhead are all possible by this move in my opinion. They used this slowdown to better execute their business strategies.) 10)When I pressed John for what else he could tell me, he agreed with my thought that the new hires would not have come on board if they were not comfortable with the company's future. 11)I asked about the 52% increase in R&D and what products are coming soon, but he could not pass on insider information. So no disclosure on the next generation beyond GMR. But it was clear to me they have it in mind. What further impressed me is that I called IR this morning and again this afternoon. I got John's call around 7 p.m. PDST. Now this guy has traveled from California to NYC, got there at 2 a.m., did not get any sleep last night, except maybe on the plane, been running all day, did the Solomon Smith Barney conference and now he is worried about his IR department's overload and is making calls on their behalf. That's a good human. I like my new stock holding and I think I like their people, too. I know I was impressed by their CEO when I heard him speak last year. And John strikes me as a similarly honest hard working person. Respectfully submitted, Dennis BTW, all of the above was said to the financial community on Tuesday at said conference. So don't be surprised if it shows up in various analyst reports.