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To: TimKP who wrote (3938)	8/12/1998 1:29:00 AM
From: Jeff Lins	Respond to of 5058

It means they need to start making money! It also means exactly what you said- that they can make it for only so long. But that is based on current burn. If they can cut expenses they can cut the burn, and live a little longer. The good thing for this business is that when it is good, it is good...but when it is bad.... Aside from cutting costs, they need to sell more, and increase gross margins. This means getting qualifications and getting in a better pricing environment-which has to do with supply, a variable we don't know much about. Every quarter is the "bottom". So the current supply problem has not been resolved. And qual's are an unknown. Not a lot to like at the moment, except that most of the bad news is priced in and demand for drives should be on a seasonal uptrend. What we really need is a shakeout- fewer players. But since I am long RDRT, I better be careful what I wish for...