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To: CPAMarty who wrote (4283)	11/11/1998 7:55:00 PM
From: CPAMarty	Respond to of 5058

here are my responses to the questions form yahoo, the thread's comments or corrections are hereby solicited; 1. Is RDRT involved in Quinta? I believe that they are. RDRT IR will not comment much on this topic. It is my understanding that application of this technology is way off in the future. 2. How strong are RDRT's new products(3.4 and 4.3) compared to others? Very competitive, per Jane Conn, Treasurer at RDRT customer feedback on current products has been very good. 3.Is it possible that RDRT will become a significant supplier of heads (obviously beyond the 5% or so at SEG and other smaller % purchasers) to everyone in the future? It appears that RDRT is diversifying its customer base. Maxtor may have taken the #1 customer spot from WDC lately. Samsung, Quantum and Fujitsu represent more potential. During the last two conference calls RDRT management refused to speculate whether SEG could become a 10% customer. I think that it is possible at the GMR level. RDRT just qualified at the 3.4GB level at SEG. 4.How will RDRT grow its business(revenue) beyond the highs of 1997? Once they do achieve that level of revenue, will they be more profitable because of the plant closing and reduced inventory turns? Hopefully they can increase gross margins thru improvement in yields. It is still uncertain whether 1997's revenues can be surpassed - i think it depends on how competitive their GMR is. Plant closings and INCREASED inventory turns should help profits.

To: CPAMarty who wrote (4283)	11/11/1998 8:28:00 PM
From: Stitch	Read Replies (3) \| Respond to of 5058

Marty, <<Is RDRT involved in Quinta? IF so, how does the new SEG joint venture (Quinta division) with the Japanese firm affect RDRT optical program?> I think the Quinta venture has been reassigned a different prority and charter. I think it has gone from "lets do a product as quickly as possible" but to what, I am less certain. Could be anywhere from "back to the drawing board" to "use parts of the technology for near term HDD products" to "we need a partner". I just don't know, so have sort of discounted it from RDRT thinking. There was an announcement, as I recall, that some head samples had been made for Quinta by RDRT. I don't know the status. <<Also in your opinion, how strong are RDRT's new products(3.4 and 4.3) compared to other? Is it possible that RDRT will become a significant supplier of heads (obviously beyond the 5% or so at SEG and other smaller % purchasers) to everyone in the future?> I think so. I think RDRT looks pretty decent in current evals and quals. They have lined up rather nicely and I am more concerned about overall fundamentals and RDRT's financial adeptness. <<How will RDRT grow its business(revenue) beyond the highs of 1997?>> By obtaining and retaining a technology lead and further shortening response time and acumen on new programs. But keep in mind that that is only to get share. We still need more solid demand fundamentals. <<Once they do achieve that level of revenue, will they be more profitable because of the plant closing and reduced inventory turns?>> We will not know until we see financials if RDRT has done enough. I have heard anecdotal stuff that runs both ways. I am sort of nuetral on this for now. Or maybe a better way to say it is sort of "neutered". Best, Stitch