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To: Sam who wrote (934)	5/11/1999 10:36:00 AM
From: Beltropolis Boy	Read Replies (2) \| Respond to of 10934

>How does this affect NTAP, if at all? quantum.com; sam. for one, it tells me that michael brown & co. see how lucrative this bidnez is. i believe QNTM's NAS initiative was first announced back in march when they said they would list the hard disk drive and storage systems businesses as separate tracking stocks. as i posted here a couple months ago, the way i read it, QNTM is looking at the niche between their cheap tape drives and more expensive storage platters. apparently, some of their customers have been asking for such a medium for some time. who knows how successful they'll be, but it's a good strategic move and acquisition considering the hits the HDD industry has taken. as you're probably aware, they've faced significant competition from IBM on the high end, while maxtor (and seagate, of course) have increased their share at the PC level. personally, my money's (literally) on NTAP. -chris.

To: Sam who wrote (934)	6/4/1999 12:57:00 AM
From: Beltropolis Boy	Respond to of 10934

>How does this affect NTAP, if at all? quantum.com; as you may have read, quantum warned today. no further mention of the meridian deal or their NAS arsenal. ----- Quantum Warns 1st-Qtr Earnings Will Miss Estimates Bloomberg News June 3, 1999, 3:28 p.m. PT Milpitas, California, June 3 (Bloomberg) -- Quantum Corp., the No. 2 computer disk-drive maker, said it expects fiscal first- quarter earnings to be less than half what analysts were expecting as steep price declines cut into revenue. Milpitas, California-based Quantum said earnings for the quarter ending June 27 will be 5 cents to 15 cents a share. It was expected to earn 31 cents, the average estimate of analysts surveyed by First Call Corp. It also said revenue will be lower than the $1.31 billion it had in the fourth quarter. Quantum and other disk-drive makers are being forced to slash prices to maintain market share as personal-computer makers look for cheap components as they sell more low-priced machines. The company said that though demand was healthy for its desktop and high-end drives, which computers use to store information and software programs, price erosion was greater than expected. Quantum ''said last month that prices were falling, so that's not a surprise. But it seems to be greater than expected,'' said David Takata, a Gruntal & Co. analyst, who rates Quantum a ''strong buy.'' Quantum fell 9/16 to 19 9/16. The announcement came after the close of trading in New York. ''Pricing pressures have been more severe than expected, with the sequential rate of price decline roughly double that of the prior two quarters,'' said Michael Brown, chairman and chief executive, in a statement. In the year-ago first quarter, Quantum had net income of $3.01 million, or 2 cents a share, on revenue of $1.1 billion. In March, Quantum said it planned to split its shares into separate stocks to track its hard-disk business and its more lucrative tape-drive storage business. At the time, Brown said that disk drives ''tend to trade at more of a discount,'' while more stable markets like tape and storage media ''trade at a higher multiple.''