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Technology Stocks : Adaptec (ADPT) -- Ignore unavailable to you. Want to Upgrade?

To: Starowl who wrote (3110)	7/23/1998 9:04:00 PM
From: Investor2	Respond to of 5944

Re: "Investor2 and I were each off $0.08, in different directions." Hmmm. I'm usually an optimist on things, but I guess I wasn't looking through my usual rose-colored glasses when I made the earnings projection. I noticed that some on this thread sold before earnings, while others sold short. My hope is that the CFO/Treasurer departures scared away many who were bordering on selling. Perhaps the departures also attracted enough speculators who are hoping to get a quick profit by shorting the stock. Based on these suspicions, I will guess that any drop from here will be met by short covering and that we are very close to the bottom. Best wishes, I2

To: Starowl who wrote (3110)	7/23/1998 10:17:00 PM
From: Larry J.	Read Replies (1) \| Respond to of 5944

A few notes from the Conference Call: Paul Hansen: 1. PTS (Sorry if this is wrong acronym, but refers to the DD business) revenue off 20% to $35M (from 45M last Q) 2. SCSI Host down 10% to $145 M 3. May was a difficult month. "Sell through" improving by the end of the quarter. Europe was up, Japan was down. June and July will weaken in Europe, but Sept. will ramp. 4. Plan to reduce channel inventory by several weeks. 5. Gross margin declined to 56% to continued price pressure in PTS and SCSI in OEM. Distribution pricing is stable. 6. Focus on managing expenses....Singapore down to a single shift (from 2) 7. SG&A less by $3.2M, R&D greater by $1.8M. 8. Cash $682 million (even w Symbios & ADI charges) 9. $14 million inventory reduction 10. DSO @ 55 days (an improvement from the March Q) 11. Saviers "Committed to improving performance. Expect improved 2nd half this fiscal and Y2K" 12. Focus on core solutions to server i/o market. Ultra III, Fibre Channel, and RAID.....Superior prelim. benchmark data. 13. The structure that was put in place to support the aborted Symbios plan (Bob Stevens group) is still the right one. 14. Expect continued revenue decline in the DD segment. Ability to be profitable in the September quarter is in question. 15. They are in the final stages in the CFO search. 16. Goal is to have operating expenses to aggregate run-rate at 35% or below by Q4. 17. Fibre Channel is a unique interface. Working w OEM's to insure interoperability. New products to be announced next quarter (not sure if that meant Sept. or Dec. Q, but assuming its Sept.) 18. Inventory is currently 5 1/2 weeks in the channel. Plan to reduce, but not drastically because product is not subject to obsolescence, and want availability to support spikes. 19. Catalysts to drive revenue in Dec. quarter will be the stabilization and revitalization in the host business, and will begin to show results of significant investment. New products coming to market in RAID, Fibre Channel, and new Storage Products. 20. Q3 Continue Ultra II ramp, higher ASP's, Upside in OEM & software products group. 21. 2nd half expect top line growth!! Reach your own conclusions. If you're able to pick up shares on the cheap in the A.M. they won't be mine. I'm dissapointed by the miss of the consensus, but they did beat the low end of the range and growth is expected to resume in a few quarters. It is not all gloom and doom! Larry