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

To: La Traguhs who wrote (5873)	3/22/1999 2:56:00 PM
From: Sam	Read Replies (1) \| Respond to of 9256

So is ESD the reason Hutch is getting zapped today?

To: La Traguhs who wrote (5873)	3/22/1999 4:57:00 PM
From: Mark Oliver	Read Replies (1) \| Respond to of 9256

Applied Magnetics Corporation to Recapitalize Subsidiary, Magnetic Data Technologies, LLC Business Wire - March 22, 1999 06:16 GOLETA, Calif.--(BUSINESS WIRE)--March 22, 1999--Applied Magnetics Corporation (NYSE:APM) today announced that it has entered into a definitive agreement with a significant private equity investment company to recapitalize its subsidiary, Magnetic Data Technologies, LLC. Applied Magnetics will receive cash from the transaction and retain a minority interest in the recapitalized company. Applied Magnetics expects to realize a gain of approximately $25 million from the transaction. The closing of the transaction is contingent upon usual and customary conditions and completion of financing arrangements. Craig D. Crisman, chairman and chief executive officer of Applied Magnetics, said, "This transaction accomplishes our three key objectives: it creates significant additional liquidity for Applied Magnetics; it provides a much stronger capitalization to support Magnetic Data's continued growth; and through its continued ownership in Magnetic Data, Applied Magnetics will continue to participate in Magnetic Data's success." "I am delighted to achieve this milestone in Magnetic Data's growth. Magnetic Data will have substantial financial resources coupled with continued strong technical and management support," said Brian R. Stone, CEO of Magnetic Data Technologies. Applied Magnetics acquired Magnetic Data in July, 1996, as a result of a foreclosure. Since then, Magnetic Data has been held by Applied Magnetics for sale and has not been consolidated with Applied Magnetics financial statements. Forward-looking statements included in this release are based on estimates and assumptions made by management of the Company, which, although believed to be reasonable, are inherently uncertain and difficult to predict. Therefore, undue reliance should not be placed upon such estimates. Such statements are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to differ materially from those projected. These factors include, but are not limited to: successful transition to volume production of MR and GMR disk head products with profitable yields; the limited number of customers and customer changes in short range and long range plans; competitive pricing pressures; changes in business conditions affecting the Company's financial position or results of operations which significantly increase the Company's working capital needs; the Company's inability to generate or obtain sufficient capital to fund its working capital needs; the Company's ability to control inventory levels; domestic and international competition in the Company's product areas; risks related to international transactions and general economic risks and uncertainties. Applied Magnetics Corporation is an independent manufacturer of magnetic recording heads, head-gimbal assemblies ("HGAs") and headstack assemblies ("HSAs") for computer hard disk drives. Founded in 1957, Applied Magnetics is the oldest independent U.S. based supplier of disk heads to the merchant market. Headquartered in Goleta, the company employs over 3,600 people around the world, with facilities in Malaysia, Korea, Singapore and China. The company's worldwide web site can be found at www.appmag.com. Magnetic Data Technologies, LLC is a leading provider of in-warranty post-sale services to technology, electronics, and telecommunications OEM's. Founded in 1982, Magnetic Data is among the oldest independent service companies to the computer data storage and telecommunications industries. For more information about Magnetic Data, visit Magnetic Data's internet home page at www.magneticdata.com, or call 800/967-7917. CONTACT: Applied Magnetics Corporation Craig D. Crisman, 805/683-5353