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

To: Stitch who wrote (5250)	1/14/1999 7:00:00 PM
From: Mark Oliver	Respond to of 9256

HMT Technology Corporation Announces Results for Third Quarter of Fiscal 1999 Business Wire - January 14, 1999 16:17 FREMONT, Calif.--(BUSINESS WIRE)--Jan. 14, 1999--HMT Technology Corporation (Nasdaq:HMTT), announced financial results for the third quarter of fiscal 1999, ended Dec. 31, 1998. During the third quarter, the Company recorded restructuring and other one-time charges of $19.5 million (pre-tax) which included a $15.7 million restructuring charge for consolidation of the company's manufacturing operations, a $2.3 million charge for inventory revaluation (included in cost of sales) and a $1.5 million charge for uncollectible receivables (included in selling, general and administrative expenses). The restructuring and other one-time charges of $19.5 million were consistent with the company's earlier press release, issued on October 20, 1998. Net sales for the third quarter of fiscal 1999 were $69.8 million, up 22.4 percent from the $57.0 million reported in the second quarter of fiscal 1999, and down 29.2 percent from the $98.6 million reported in the third quarter of fiscal 1998. Gross profit was $7.2 million, or 10.3 percent of net sales, for the third quarter of fiscal 1999. Excluding the $2.3 million inventory charge, gross profit would have been $9.5 million, or 13.7 percent of net sales. This compares with gross profit of $8.0 million, or 14.1 percent of net sales, for the second quarter of fiscal 1999, and $37.0 million, or 37.6 percent of net sales, for the third quarter of fiscal 1998. Net loss for the third quarter of fiscal 1999 was $12.4 million, or $0.28 per diluted share on 43.8 million shares outstanding. Excluding the restructuring and other one-time charges of $19.5 million (net of tax benefit), third quarter net income on a pro-forma basis was $1.3 million, or $0.03 per diluted share on 43.8 million shares outstanding. This compares with net income of $505,000 or $0.01 per diluted share on 43.6 million shares outstanding in the second quarter of fiscal 1999, and $20.5 million or $0.40 per diluted share on 55.1 million shares outstanding in the third quarter of fiscal 1998. For the nine months ended Dec. 31, 1998, net sales, net loss and net loss per diluted share were $183.6 million, $10.8 million and $0.25 per diluted share on 43.6 million shares outstanding, respectively. Excluding the restructuring and other one-time charges of $19.5 million (net of tax benefit), nine months net income and net income per diluted share would have been $2.9 million, or $0.07 per diluted share. This compares with net sales, net income and net income per diluted share of $265.8 million, $54.9 million and $1.04 per diluted share on 54.4 million shares outstanding, respectively, for the nine months ended Dec. 31, 1997. "As we indicated in our October 20, 1998 press release, we entered this quarter encouraged by the order outlook for the quarter, but due to uncertainty in the outlook for the overall storage industry, we decided it was necessary to implement a restructuring to properly align our cost structure with the near term outlook. We also indicated that we expected the total one-time charge to earnings to be between $15-25 million before tax," said Ronald Schauer, Chairman, President and CEO. "We are pleased to report that revenue for the quarter was up 22.4% over the second quarter, and we completed the restructuring during the quarter with the restructuring and other one-time charges totaling $19.5 million before tax," said Schauer. "While actions like this are always painful, we feel very strongly that we are now much better positioned to meet the future needs of our customers, shareholders and employees." "We continue to be very pleased with the performance of our advanced magneto-resistive, laser textured media. During the quarter, approximately 60% of our shipments were for advanced products with areal densities in excess of 3 GB per platter," said Schauer. "In particular, we are extremely satisfied by the performance of our 4.3 GB per platter product in production, as well as the progress in qualifications on our 5.1 and 6.5 GB per platter products." The statements in this news release, other than historical financial information, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ from predicted results. Further information on factors that could affect the company's results is detailed in the company's report on Form 10-K for the year ended March 31, 1998 and Form 10-Q/A for the period ended September 30, 1998, as filed with the Securities and Exchange Commission. HMT Technology Corporation independently designs, develops, manufactures and markets high-performance thin-film disks. The company's products are used in high-capacity hard disk drives for a variety of high-end applications, including personal computers, network servers and workstations, and in certain removable hard disk drive applications. The disks currently being shipped by HMT primarily have coercivity levels of 2000 to 3000 Oersted, a measure of storage capacity, and glide heights of 1.2 to 0.8 microinches. The company's shares are traded on the Nasdaq National Market under the symbol HMTT. Additional information may be obtained by visiting HMT's website at hmtt.com, or by contacting the company directly. Condensed Consolidated Statements of Operations and Balance Sheets to follow.

To: Stitch who wrote (5250)	1/14/1999 7:01:00 PM
From: Mark Oliver	Read Replies (2) \| Respond to of 9256

HMT Technology Corporation Announces Results for Third Quarter of Fiscal 1999 Business Wire - January 14, 1999 16:17 Condensed Consolidated Statements of Operations and Balance Sheets to follow. HMT Technology Condensed Consolidated Statement of Operations Three Months Ended Nine Months Ended December 31, December 31, 1998 (1) 1997 (1) 1998 (1) 1997 (1) -------------------- -------------------- (In thousands, except per share amounts) Net sales $ 69,792 $ 98,556 $183,557 $265,839 Cost of sales 62,582 61,538 158,975 164,767 Gross profit 7,210 37,018 24,582 101,072 Gross profit percentage 10.3% 37.6% 13.4% 38.0% Operating expenses: Research and Development 2,368 2,229 7,185 6,411 Selling, General and Administrative 4,056 3,408 8,934 10,518 Restructuring charges 15,662 - 15,662 - Total operating expenses 22,086 5,637 31,781 16,929 Operating income (loss) (14,876) 31,381 (7,199) 84,143 Interest expense & other, net 2,772 2,138 8,168 5,710 Income (loss) before income tax provision (benefit) (17,648) 29,243 (15,367) 78,433 Income tax provision (benefit) (5,294) 8,773 (4,610) 23,530 Net income (loss) (12,354) 20,470 (10,757) 54,903 Net income (loss) per share: Basic $ (0.28) $ 0.48 $ (0.25) $ 1.31 Diluted (2) $ (0.28) $ 0.40 $ (0.25) $ 1.04 Shares used in computing net income (loss) per share: Basic 43,822 42,768 43,581 41,912 Diluted (2) 43,822 55,099 43,581 54,481 (1) Unaudited (2) Diluted EPS for the three and nine months ended December 30, 1998 does not assume conversion of the Company's 5 3/4% convertible subordinated notes, as the effect would be anti-dilutive. HMT Technology Condensed Consolidated Balance Sheets December 31, March 31, 1998 (1) 1998 (2) ----------- -------- (In thousands) ASSETS Cash, cash equivalents & short-term investments $36,739 $24,985 Accounts receivable 49,023 70,660 Inventories 27,107 18,400 Deferred income taxes, short-term 12,249 12,249 Other current assets 894 629 Property, plant & equipment, net 328,547 343,856 Other assets 6,379 7,444 TOTAL ASSETS $ 460,938 $ 478,223 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $ 29,771 $ 38,224 5 3/4% Convertible subordinated notes 230,000 230,000 Deferred income taxes, long-term 19,008 19,008 Other long-term liabilities 7,153 8,539 Total stockholders' equity 175,006 182,452 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 460,938 $ 478,223 (1) Unaudited (2) The Balance Sheet as of March 31, 1998 has been derived from audited Consolidated Financial Statements CONTACT: HMT Technology Corporation Peter Norris, 510/490-3100 or Investor Relations, 510/683-6000

To: Stitch who wrote (5250)	1/14/1999 11:39:00 PM
From: Z Analyzer	Read Replies (1) \| Respond to of 9256

<<But the compelling reasons for me have been anecdotal which I am loathe to publishable here.>> That's the real key. If you're hearing from industry insiders about problems WDC is having eihter on their own or with IBM, that's worth more than books full of theory about the best business models since we've seen all models succeed at times and at other times fail miserably. Please don't spare us the scuttlebut unless its out of line for you to disclose. Later, Z