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To: Andrew Vance who wrote (14356)	6/10/1998 2:18:00 PM
From: Dale Knipschield	Respond to of 17305

AV, A week or so ago, I mentioned that in my opinion, this may be the "mother of all Christmases" in regards to PC sales. Looks like CPQ wants to stay a leader by now offering "Build your Own" capability at all major outlets. dailynews.yahoo.com Customer picks own uP, HD, etc. This is going to bite into Intel, but should help AMD and Cyrix, pehaps even IDTI if they can get any OEM contracts. Pick your stocks now before prices go up during the Xmas rush! Knip

To: Andrew Vance who wrote (14356)	6/10/1998 7:15:00 PM
From: Judy	Read Replies (1) \| Respond to of 17305

Andrew, do you know who LSCC's major customers are? Thanks.

To: Andrew Vance who wrote (14356)	6/10/1998 9:38:00 PM
From: Robert F. Newton	Read Replies (1) \| Respond to of 17305

WDC gets hammered................................ Western Digital Falls 28% on Warning of Larger Loss Irvine, California, June 10 (Bloomberg) -- Western Digital Corp. shares fell 28 percent after the company warned that its fiscal fourth-quarter loss will be larger than analysts had expected because of deep price cuts on its computer disk drives and slower sales. Western Digital fell 4 5/16 to 11 3/16 as 12.2 million shares traded hands, making it the fifth-most active stock in U.S. trading. Earlier, the shares set a 52-week low of 11 1/16. This is just more of the same,'' said analyst Andrew Neff of Bear, Stearns & Co., who has a ''neutral'' rating on the stock. ''It's a combination of industry weakness and that they relied on older technology longer than some of their competitors.'' Western Digital and rival disk-drive makers have been losing money for several quarters, hurt by slack demand and falling prices for the components, which store data in computers. Western also is suffering because it has been late in developing new technology that lets disks store more information. They've lost some customers,'' Jim Porter, an analyst at Disk/Trend in Mountain View, California, said yesterday. Western is a big maker of disk drives for personal computers, and PC sales have slowed, leading to rising inventory, Porter said. New Technology Rivals Seagate Technology Inc., Quantum Corp. and International Business Machines Corp. haven't been hit quite as hard because they offer more of the new technology. Analysts had expected Western Digital to lose 52 cents a share in the quarter ending June 27, according to the average estimate of analysts surveyed by IBES International Inc. Western said it now expects a loss of more than $100 million excluding charges, which works out to more than $1.14 a share, based on 87.8 million shares outstanding. Western Digital didn't give a per-share amount for the forecast. The fiscal fourth-quarter loss, if it comes in as expected, will result in a default on the company's $250 million bank credit line, $50 million of which is outstanding in the form of a term loan, the company said. Western earned $87.9 million, or 95 cents a share, on sales of $1.08 billion in the year-ago quarter. Irvine, California-based Western said it has ''substantially reduced'' production in the last few quarters. It plans in the next two months to shorten the work week at plants in Singapore and Malaysia. The company said that by the end of this quarter it will have reduced its workforce by 22 percent since November through attrition and firings. Western, once a technological leader in the disk-drive industry, has been slow to switch from older devices to new ones that use so-called magneto-resistive technology, which lets users fit more data on a single disk, lowering costs, Porter said. The company, meanwhile, blamed the bulk of its problems on a lingering glut of disk drives among PC makers. There remain too many drives in the distribution channel,'' Western Chairman and Chief Executive Charles Haggerty said in a statement about the projected loss. Read-Rite Corp., a supplier of the heads that read data on a disk drive, also warned today about a wider-than-expected loss in the fiscal third quarter. Read-Rite blamed the disappointing results on lagging demand in the computer disk drive market. 17:15:17 06/10/1998 Any redistribution of Bloomberg content, including by framing or similiar means, is expressly prohibited without the prior written consent of Bloomberg L.P. Any reference to the material must be properly attributed to Bloomberg News. The information herein was obtained from sources which Bloomberg L.P. and its suppliers believe reliable, but they do not guarantee its accuracy. Neither the information, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any securities or commodities.(C) Copyright 1998 Bloomberg L.P. BLOOMBERG, Bloomberg News, Bloomberg Financial Markets, Bloomberg Television, Bloomberg News Radio are trademarks, tradenames and service marks of Bloomberg L.P.