Latest price war cuts earnings of disk-drive makers; rivals blame Conner Peripherals as stocks fall on lower profit estimates
Article Abstract:
Disk-drive makers are in the midst of one of their periodic price wars. Analysts and rival executives blame Conner Peripherals Pres and COO David T. 'Tom' Mitchell, who is slashing prices despite record demand for drives. One analyst predicts 'lousy' results for the quarter ended Mar 31, 1993. Investors are dumping their disk-drive stocks: since Jan 1993, Conner stock is off 35 percent, Western Digital Corp and Maxtor Corp are off nearly one-half, and Quantum Corp and Seagate Technology Inc are off 30 percent. Analysts, investors and executives are wondering if cycles of overproduction followed by ferocious price wars are a permanent feature of the industry. With most personal computers these days selling with at least 170Mbyte hard drives, manufacturers have been particularly aggressive in cutting the prices of smaller drives.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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Strategic alliances play big role in start-up's success; Exabyte Corp.'s growth is boosted by links with Sony and Kubota
Article Abstract:
Exabyte Corp's rise from relative obscurity to an important computer storage device company was largely due to its alliances with Sony Corp and Kubota Ltd. Exabyte's annual revenue grew, from zero in 1986, to $160 million in 1990, and the 1990 earnings of $13.6 million is five times 1989 earnings. Exabyte's products provide storage of computer date on small 8-millimeter videotapes; Sony provides the 8mm tape mechanism, which is the core of the Exabyte system, and Kubota manufactures nearly 60 percent of the products. Exabyte was able to enter the market by bypassing computer manufacturers and going directly to value-added resellers (VARs).
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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Storage Technology officers sold stock soon after touting product highly
Article Abstract:
Storage Technology Corp introduced the Iceberg disk storage system in Jan 1992, emphasizing optimistic news about orders and the product's potential. The company's stock rose in consequence and then, 15 Storage Technology officers, including Chmn and CEO Ryal Poppa, exercised stock options and sold shares, reportedly making $5.4 million in profits. Now, Iceberg is behind schedule and Storage Technology's stock is down. Bob Djurdjevic, president of Annex Research, has criticized Storage Technology's officials, saying that company executives should not have made money from Iceberg before the company's other shareholders did so.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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