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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Mark Oliver who wrote (5200)	1/10/1999 5:29:00 AM
From: Z Analyzer	Respond to of 9256

HTCH mentioned cap x of $150 to 170 mil depending upon demand with 80 mil depreciation. At estimated earnings, cash flow should be roughly breakeven. HTCH presently has 70 mil lt debt, 150 mil convertible debt and 70 mil cash (end Sept). After the offerring, HTCH should have cash in excess of long tern debt. I don't kow what they'll do with the 70 or whether it is prepayable without penalty. More likely, their balance sheet will improve dramatically as holders of 150 mil of convertible convert at $28 per share. Depending upon the timing of this, it is quite conceivable that cash will increasingly exceed debt through the next year with most of the offerring proceeds plus current cash intact at year end. I have not heard any discussion of cap x for microactuation but understand it does not require all new processes as TSA has and should be much easier. Most interesting, they are now saying TSA production of 10 mil per week end Sept is likely conservative and would like to be at 12. Does wonders for both revenue and EPS and indicates they see TSA continuing to dominate. As for Fujitsu, HTCH has been saying for some time that Fujitsu said 9 or 12 months ago to come back when they had capacity. HTCH hopes to head off Fujitsu making major capacity increases of their own, something that wouldn't be attractive to Fujitsu if CAPS is uncompetitve cost wise. Z