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

To: Stitch who wrote (5980)	3/29/1999 10:18:00 PM
From: Mark Oliver	Respond to of 9256

HMT Technology Corporation Expects Loss for Fourth Quarter Fiscal 1999 Business Wire - March 29, 1999 16:29 FREMONT, Calif.--(BUSINESS WIRE)--March 29, 1999--HMT Technology Corp. (Nasdaq: HMTT) announced today that it expects revenues for the fourth fiscal quarter ending March 31, 1999, to be approximately 15-20% below the $69.8 Million reported for the third quarter ended December 31, 1998 and the Company expects to report a loss. The Company's cash flow will be positive for the fourth quarter. HMT Technology Corporation will release results for the quarter at the close of the market on April 20, 1999, and will have further comments at that time. The statements in this news release may contain forward-looking statements about HMT that involve risks and uncertainties that could cause HMT's actual results to differ from predicted results. Further information on factors that could affect HMT's results are detailed in HMT's reports on Form 10-K for the year ended March 31, 1998 and Form 10-Q for the period ended December 31, 1998, as filed with the Securities and Exchange Commission. HMT undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. 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 certain removable hard disk drive applications. The disks currently being shipped by HMT primarily have coercivity levels of 2000 to 3300 Oersted, a measure of storage capacity, and glide heights of 1.2 to 0.7 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. CONTACT: HMT Technology Corporation Peter Norris, 510/490-3100 or Investor Relations, 510/683-6000 Fax 510/360-7613

To: Stitch who wrote (5980)	3/30/1999 11:08:00 AM
From: Robert Douglas	Read Replies (2) \| Respond to of 9256

I think the odds are growing that the decline we have experienced lately had its roots in what I call an “inventory echo”. As you all know, last year saw a very large inventory liquidation due to many factors which included recession in Asia, switch to BTO, channel stuffing and a drop in the growth rate of PC sales. While this inventory was being drawn down, production was below what was actually being sold at the end of the pipe. When the excess inventory was eliminated, the production had to jump to bring it back in line with ultimate demand. This produced a momentary surge in the growth rate and doubtless some ill-founded optimism among PC makers and parts suppliers. Now we have a smaller inventory drawdown underway. I don't think it will be nearly as severe as its predecessor and will likely be corrected rapidly. Isn't this precisely what we want to happen? - Inventory buildup resulting in production cutbacks before they get too large. The disk-drive industry of old would have gone right on producing at high levels until a glut killed everyone. -Robert