SETO news out, deal with Readrite (RDRT)
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Monday March 15, 9:17 am Eastern Time
Company Press Release
SETO Holdings, Inc. Announces Receiving Approval for Another Hdd Product to be Sold to Read Rite Corp., Thailand
BRIARCLIFF MANOR, N.Y.--(BUSINESS WIRE)--March 15, 1999-- SETO Holdings, Inc.(OTC BB: SETO - news) Mr. Pian , SETO's President, said ''SETO has received confirmation from Read Rite Corp. of Thailand, (NASDAQ: RDRT - news), that the first of two products submitted for evaluation has passed testing and is approved for production. The second evaluation of a similar product is expected to be completed during April/ May 1999.'' Read Rite Corp. is the world's No. 1 independent maker of magnetic recording heads used in hard disk drives.
SETO has already negotiated pricing with Read Rite and estimates revenue will be in the same range as the order recently received from Seagate Technology, Inc. (NYSE: SEG - news), the world's leading independent maker of storage drives for computers. The Seagate contract is valued at approximately $500,000 per year. Confirmation of orders from Read Rite is expected in second quarter of 1999.
The product approved by Read Rite is different than the Seagate ceramic slider plate but has the same end-use in the manufacture and fabrication of the drive head materials. This additional product gives DTI Technology, a wholly owned subsidiary of SETO Holding Inc., another consumable item for the disk drive industry. ECS, East Coast Sales Co. Inc. New York, also a SETO subsidiary, was again instrumental in the technology and know-how to produce these parts and is committed in continuing the technical support to satisfy the needs of the customer. This is the second major product in a new industry for SETO, with several more being developed for 1999. Test results from three other hard disk drive manufacturers in other countries, for these same products, are expected within the next 3 to 4 months. Mr. Pian said, ''It is too early to estimate the value of the additional potential orders from the new customers presently testing and evaluating, however we anticipate that the revenue from these contracts will equal or exceed those of Read Rite and Seagate.''
In addition, Mr. Pian, reported that the ECS, East Coast Sales subsidiary of SETO Holdings, has received a 100% increase in orders for the first quarter ending April 30, 1999 from ECS's second largest customer for technical ceramics. Mr. Pian stated, ''If continued at this level, the customer will be in excess of $1 million in revenue for fiscal year ending January 31, 2000.'' In addition to this increase in orders, our customer has indicated that new products are in final stages of evaluations from their clients, which is expected to generate new business for them starting the second quarter of 1999. This will help ECS maintain the first quarter growth for the second quarter and would also increase growth over the current level for the fiscal year ending Jan. 31, 1999.''
The preliminary estimates for year ending January 31, 1999 for revenue of $2.8 million with EPS of $.03 , ''might be understated as we come close to finalizing the accounts.'' Final results are expected soon, and the annual 10k SEC filing should be completed ahead of its required release by April 30, 1999.
SETO HOLDINGS, Inc., formerly Semicon Tools Inc. has been a public Company since 1987 and operates as a broad based technical manufacturer in two major product groupings: Technical products: to industry: inclusive of diamond tools for wafer fab, clean room supplies and technical ceramics. Consumer products: cellular phone batteries.
''Safe Harbor'' statement under the Private securities Litigation Reform Act of 1995 Statements contained in this release which are not historical facts are forward looking statements that involve risks and uncertainties that could cause actual results to differ from projected results. Factors that could actual results to differ materially include, among others, economic and political events in or effecting Malaysia, the Company's dependence on the semiconductor industry and other risk factors detailed in the Company's Securities and Exchange Commission filings.
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Contact:
Contacts for Investor Information:
Direct to SETO HOLDINGS, Inc.
Gene Pian, President
Tel: 914 923 5000
Fax: 914 923 6225
Company web site: www.SETOHOLDINGS.Com /
www.stidiamond.com /
email:stiandecs@aol.com |
