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Technology Stocks : CRUS, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Yiqun Xie who wrote (5963)	6/17/1998 4:51:00 PM
From: ptrader	Respond to of 8193

Yiqun, Hackworth had mentioned the loss of the Seagate business in his conference call with wall street after earning release in April. If you remember, wall street downgraded CRUS earning after that anouncement. By the way, these conference calls are available to the public after the call. Call CRUS IR if you are interested in the phone number each quarter. Anyway, I looked at the Seagate drives at Fry's in CA and found that CRUS had two chips on all their drives. I think one was a read channel and the other was a large package part (maybe the interface part?). These two parts probably account for over half of mass storage volume. The Western Digital news came last week when they announced an $100m operating loss for this quarter (check news on WDC). All in all, it looks like mass storage revenue will be cut in half.

To: Yiqun Xie who wrote (5963)	6/17/1998 4:54:00 PM
From: Grand Poobah	Respond to of 8193

I would guess he is referring to the anticipated lower revenues, layoffs, and reduced production announced by Western Digital: biz.yahoo.com And I presume the loss of Seagate business refers to the following excerpt from Cirrus' latest Form 10-Q: "In addition, the Company's mass storage products were not designed into a major customer's product which is expected to run through the second quarter of fiscal 1999. Consequently, these factors could have an adverse impact on the mass storage division's revenue through the next two fiscal quarters." There has been some discussion that this "major customer" is Seagate, which makes sense, although I am not personally aware of any official confirmation of that by CRUS. Hope that helps. I don't know if ptrader has any other sources for his info besides these public ones. G.P. P.S. I see now that ptrader has already responded, but here you got the links if you want them. The Form 10-Q is available from freeedgar.com under SEC filings for the ticker symbol CRUS.