FOR IMMEDIATE RELEASE
June 24, 2002
READ-RITE UPDATES THIRD QUARTER FINANCIAL OUTLOOKFREMONT, CA - June 24, 2002 - Read-Rite Corporation (Nasdaq: RDRT) today provided an update to its financial guidance for the third fiscal quarter, which ends June 30, 2002. The company anticipates reporting revenue for the third fiscal quarter of 2002 to be slightly below $40 million with a loss of approximately $0.45 cents per share.
These expectations are below the company's earlier guidance for the third quarter, driven primarily by lower than expected unit shipments and more aggressive pricing than previously anticipated. However, the company believes that its revenue outlook will improve in the near term based on the company's recent receipt of volume orders for its 60 GB heads. The company is currently ramping production of its 60 GB product in anticipation of volume shipments commencing in the first half of our September quarter.
The company is scheduled to release results for the third fiscal quarter ending June 30, 2002 after the close of the market on July 31, 2002 and will provide further information at that time.
Read-Rite Corporation is one of the world's leading independent manufacturers of magnetic recording heads, head gimbal assemblies (HGAs) and head stack assemblies (HSAs) for disk drives and tape drives. The company is headquartered in Fremont, California and has operations in California, Thailand, the Philippines, Japan, Singapore and South Korea. The company's website is located at http://www.readrite.com.
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This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. The forward-looking statements in this release include statements addressing the following subjects: the company's expectation that it will be reporting revenue for the third fiscal quarter of 2002 slightly below $40 million with a loss of approximately $0.45 cents per share; the company's expectation that its revenue outlook will improve in the near term based on the company's recent receipt of volume orders for its 60 GB heads; and the company's expectation that it will be commencing shipments on its 60 gigabyte per platter products in the first half of the September quarter. The company's actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ include, but are not limited to: design-ins or qualifications of the company's products on future programs may not occur or could take place at a slower rate than anticipated; the company may be unsuccessful in qualifying and ramping production on the 60 GB products; there may be reductions, cancellations or rescheduling of orders by the company's customers; the company may be unsuccessful in achieving and maintaining satisfactory yields; and other factors described in the company's reports filed with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for Fiscal 2001 and the Quarterly Reports on Form 10-Q for the first and second quarters of Fiscal Year 2002 ended December 30, 2001 and March 31, 2002, respectively. The company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of such statements.