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Non-Tech : HMT TECHNOLOGY - UNDISCOVERED YET! -- Ignore unavailable to you. Want to Upgrade?

To: Stu Bishop who wrote (2080)	10/21/1998 1:32:00 PM
From: CCW	Read Replies (1) \| Respond to of 2253

Stu, I have taken some notes during the conference, here is some of the high lite. For the quarter ended 9/30/98 Units ship about 6,000,000 same as June quarter. Average selling price about same as June quarter and March Qt. Aggressive pricing within the industry has slow down. Demand for its product was also back end loaded. i.e. most delivery occur during the last part of the quarter. Shipping 4.3 Gig per 3 1/2 inch platter to both Samsung and Maxtor, WDC also. The restructuring charge taken place on the morning of 10/20, including people, facility and equipments. It involve 300 people out of 2000, do not know which facility will be involve, older equipment will be taken out of production. * Out of this range of $15 to $25 million charge, they do not have a completed detail because this it has just began the early morning of 10/20, but they do anticipate about $5 million for the 300 people. * Most disk drive mfg. are on a Just in time inventory process, so HMTT has more inventory than past, they said they will work to reduce that inventory. * This reduction of people, equipment and facility are simply due to lack of visibility in the near future, but with this they will remain profitable, and cash flow neutral. * See more of a linear demand of their products for this quarter and following quarter. * Currently has 11 products in production, they said 6 products in qualification and 10 products in development. * and they are working on a 13.5 and 18 gig per platter. and all this can be done on the existing equipment. * Past quarter customer are Maxtor, WDC, Samsung and IOM, they range from 15% thru 35% for the products shipped. they expects WDC to increase this coming QT. Moore's law has really taken a hold on the disk drive business. CCW