Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: Sal Davis who wrote (3240)	8/14/1998 3:23:00 PM
From: Stephen W. Leahy	Read Replies (2) \| Respond to of 17679

Forget KM. I don't think Ed has anything up his sleeve on KM. As he said it MAY be useful in higher density disks in a couple or few years. I've seen a few people speculate on using KM in a Micronet product. I have no specific knowledge on this, but to me it seems very unlikely. AXC or someone else would have to custom manufacture KM drives in the relatively low quantities that AXC/Micronet would need. This would be very expensive. Meanwhile high capacity disk drives are selling at firesale prices. Even if AXC got a capacity advantage from KM, the resulting KM RAID product would cost much more than a competitive product which used a few more cheap drives to get the same capacity. AXC did not "spend" $2.9 million on R&D for Micronet. Writing off in-process R&D is a tactic used in virtually every acquisition of a technology company. The idea is to expense as much of the acquisition price as possible to reduce the amount of goodwill that has to be amortized against earnings of the acquiring company in future periods.