Here's a coup by SFLX: Got IBM's MR and GMR slider business which would probably also include WDC's as I believe IBM is sourcing their MR and GMR heads from IBM.
I wonder if it will add more than a 1/16th to SFLX's price. :(
++++++++++++++++++++++
Tuesday October 6, 8:00 am Eastern Time
Company Press Release
IBM Taps Smartflex Systems To Manage Slider
Manufacturing Facility In Mexico
TUSTIN, Calif.--(BUSINESS WIRE)--Oct. 6, 1998--
Smartflex will take responsibility for manufacturing, materials,
engineering and administrative management to ramp volume production for MR and GMR sliders, key recording head assemblies in IBM disk drives.
Smartflex Systems Inc. (Nasdaq: SFLX - news) Tuesday announced that it has entered into an agreement with International Business Machines Corp. (NYSE:IBM - news) in Guadalajara, Mexico, to manufacture and test sub-assembly sliders used with magnetoresistive (MR) and giant magnetoresistive (GMR) heads for hard disk drive applications.
Smartflex will manage this business within the IBM facilities in Guadalajara under a ''Vendor-in-House'' program. Operating with consigned inventory, Smartflex will be responsible for manufacturing, materials, engineering and administrative management necessary to achieve production volumes committed to IBM customers.
The sliders will be manufactured by Smartflex Systems de Guadalajara S.A. de C.V., a newly formed, wholly-owned subsidiary of Smartflex Systems Inc. Operations have commenced and are intended to generate revenue beginning in the fourth quarter of 1998.
Smartflex President and Chief Executive Officer William Healey said: ''We are pleased that IBM chose Smartflex over a number of qualified candidates for this operation. This agreement demonstrates IBM's continued confidence in Smartflex's high volume precision manufacturing capabilities and validates our goal of providing the precision solutions to make our customers more successful.'' Healey also added that, ''Credit for securing this opportunity goes to our Monterrey, Mexico management team who demonstrated our skills to IBM.''
Smartflex Systems, with headquarters in Tustin, is an electronics manufacturing services (EMS) expert in precision, automated manufacturing. Smartflex services optimize and accelerate product realization the process from product concept through volume manufacturing.
Specializing in precision interconnect-based packaging enables Smartflex to design and manufacture significantly smaller products at reduced cost. Smartflex's specialty manufacturing skills allow the company to help its telecommunications, computer, and medical electronics customers meet their goals of smaller packaging, reduced cost, and faster delivery to the marketplace. Smartflex serves customers worldwide from its factories and technology centers in Cebu, Philippines; Monterrey, Mexico; Singapore; and Tustin. For more information contact the company's Web site at smartflex.com.
This release contains forward-looking statements, including each statement of management's opinions, expectations, plans, and
objectives for future operations; that involve risks and uncertainties. Actual results could differ materially from these
expectations as a result of various factors, and therefore we caution investors against ascribing undue weight thereto. The
factors include, but are not limited to, the ability to effectively identify, investigate, conclude, integrate and manage acquisitions
or large-scale projects, to manage the transition of manufacturing operations, qualification of manufacturing processes, efficient
utilization of manufacturing facilities and financial resources, the ability to retain and attract qualified personnel, international
currency fluctuations, and future financial, economic, competitive and market conditions and their potential direct or indirect
effect, including cancellations of orders included in backlog. These and other factors are also discussed in Smartflex Systems'
10-K, 10-Q and other filings made previously or from time to time with the Securities and Exchange Commission.
Contact:
Smartflex Systems Inc., Tustin
John Hohener, 714/838-8737
Dick Bell, 714/838-8737
or
Stapleton Communications
Willa Patch, 650/470-4230
or
Young Company
John Dillon, 310/451-0300 |
