On a sequential basis we did, however, narrow our quarterly net loss, exclusive of the unusual charges and the equity losses from AKCL
in both periods.
1 million, exclusive of the one-time charge, exceeded our earlier estimate due to higher-than-anticipated inventory write-off and the larger equity loss of AKCL
," said Johnson.
Contrary to Komag's improving outlook, product transition issues at AKCL
will most likely cause the joint venture's operating performance to decline sequentially between the first and second quarters of 1997.
had five production lines in operation at year end.
Factors that could cause actual results to differ include the following: product transitions to next-generation products; improved manufacturing efficiencies on newly-introduced products; effective utilization of existing and soon-to-be-completed manufacturing facilities; industry supply-demand relationship and related pricing for high-end desktop and enterprise disk products; availability of certain sole-sourced raw material supplies; vertical integration and company consolidation within the company's limited customer base, including the ability of Komag and/or AKCL
to maintain and expand business with Matsushita-Kotobuki Electronics Industries Ltd.
holds a minority interest in Headway Technologies, Inc.
Factors that could cause actual results to differ include the following: the ability of Komag and/or AKCL
to obtain future additional business from MKE; product transitions to next-generation products; effective utilization of existing manufacturing facilities; continuation of improved manufacturing efficiencies; industry supply-demand relationship and related pricing for high-end disk products; execution of planned capacity additions; vertical integration and company consolidation within limited customer base; and the risk factors listed in the company's registration statement on Form S-3 filed in September 1995.