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To: Stitch who wrote (3669)7/15/1998 1:58:00 AM
From: Mark Madden  Respond to of 5058
 
I see Seagate's CC as slightly bullish for RDRT. The desktop market was tough last quarter and their is no significant improvement. Since RDRT's customers are mostly in the desktop market, their losses will likely be big. The desktop market typically picks up in September but it didn't last year. The good news is Seagate plans to increase outside head purchases another 5% and they like some of the high end heads (also higher margin)they have seen from the outside. I roughly figured 1.5 to 2.0 million heads.

RDRT's CC will likely repeat qualification news and talk about operating efficiencies like Seagate did. In other words they are poised for profits if someone would just buy some heads. I think they will eventually get their orders when computer sales improve as outlets get ready for Christmas.

Mark M