Disk-drive firm steers back from brink; Storage's net rises; tape system fuels strength

Article Abstract:

Storage Technology Corp (ST), a disk drive manufacturer that is attempting to come back from bankruptcy proceedings, will post earnings of $22.3 million for 4th qtr ended Dec 29, 1989. For FY 1989, ST reports earnings of $47.7 million on revenue of $982.5 million. ST, which entered bankruptcy court in 1984 with losses of $122 million and emerged three years later, owes much of its success to tight expense controls and a promising tape-storage product. CEO Ryal Poppa reduced ST payroll from 14,000 to 9,000, eliminated two levels of management, ended mainframe and optical disk research efforts and concentrated on a new storage system. ST's 4400 Automated Cartridge System uses a robot capable of retrieving data from thousands of tape cartridges. The product is not as fast as other storage systems, but the cost is about 50 cents per megabyte, compared to $15 or $20 per megabyte for conventional disk drives.

Management, Marketing, Profits, Storage Technology Corp., STK, Bankruptcy, Poppa, Ryal R., Management Style, Companies, Company Profile, Manufacturers, Reorganization, Profit, Tape Drive, Tape drives, Fourth Quarter, Storage Technology 4400 Automated Cartridge System (Tape storage equipment)

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MiniScribe Corp. shows $88 million negative net worth

Article Abstract:

MiniScribe Corp may file for protection under bankruptcy laws as a result of a reported $88 million negative net worth. The company's financial problems are due in large part to fraudulent activities allegedly engaged by the company since 1985. Financial records since then have been tampered with, and this is the first indication of the company's financial outlook. The disk drive manufacturer is continuing to lose money and will probably report further losses at the end of 1989. Although the company has yet to file any financial reports in 1989, it is expected that MiniScribe will report $500 million in sales, a decline from the projected $603 million. Although analysts are pleased that the company has been able to work its way through its financial problems as well as it has, they still question MiniScribe's ability to compete in the tough disk drive market.

Fraud, Losses, MiniScribe Corp., MINYE

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