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Inside Inside International Disk Drive Equipment and Materials Association September/October 1999 insideinsidewhat’s 77 The Disk Drive Market: A Period of Pain High Resolution Optical Tools for 88 Shrinking Pole Tips 1818 Solid State Disks 2626 DISKCON® USA Schedule 4444 Alternative Substrates: The Real Cost ISO 9000 Registration: 4949 Good Business Practice or Requirement Seagate Ad departments 6 Marketplace Joan 7 Letter from the Editor 14 Membership Update IDEMA Executive Director, Joan Pinder 16 Storage News We invite you to join us at the 13th annual DISKCON USA, the world’s largest technical conference and trade show 22 devoted to data storage equipment, materials, services and Standards Update technology. This year’s DISKCON USA features five days of 30 technical and business offerings, including more than 20 Committee Focus conference sessions, education classes, and standards committee meetings and workshops, a charity golf tourna- 36 ment, plus a trade show with more than 400 exhibiting Volunteer Spotlight companies. In these trying financial times, DISKCON USA offers a cost-effective way for 39 companies to keep up-to-date on new technologies and to broaden education and training Industry Calendar opportunities. 48 Technical Education Advanced Technologies For Future Storage, scheduled for Tuesday morning, sets the tone for DISKCON USA’s three-day technical conference with presentations on new types of storage 50 beyond current magnetics. With emerging applications such as TV set-top boxes, wearable IDEMA Asia-Pacific computers, and digital cameras estimated to drive growth for the data storage market, it is criti- cal that HDD industry manufacturers educate themselves about the drive designs needed to support these exciting new applications during Wednesday’s presentations. And for the first time articles at DISKCON USA, conference attendees will hear the integrator’s viewpoint on requirements for PC and storage subsystem designs and storage capabilities for emerging applications, also on 7 Wednesday. The conference will wrap up on Thursday with the always popular Wall Street The Disk Drive Market: A session, covering the state of the industry as viewed by both buy and sell sides of Wall Street. Period of Pain 8 In addition to the conference, DISKCON USA offers 13 technical education classes, including new High Resolution Optical classes on Head-Disk Interface, Disk Drive Interfaces, Microcontamination, and ESD, as well as a Tools for Shrinking Pole Tips presentation skills course to provide you with the techniques needed to get maximum impact 18 from your technical and sales presentations. Whether you are new to the industry or a veteran, Solid State Disks you will find that IDEMA’s classes will provide a greater understanding of the components and manufacturing processes used to build today’s high-performance disk drives. 44 Alternative Substrates: The Real Cost Another annual DISKCON USA event is the Mark Geenen Technology for Youth Charity Golf Tournament, which will be held at the Castlewood Country Club in Pleasanton on Monday; shotgun start at 12:15 p.m. IDEMA has teamed with former San Francisco 49er Ronnie Lott’s chari- table organization, All Stars Helping Kids, to help complete an interactive playroom on the upcoming features pediatric floor at the UCSF Medical Center in San Francisco. Last year, the tournament raised Mobile Storage over $50,000 in cash in support of this important and worthwhile project. Load/Unload & CSS Testing Contamination Issues in DISKCON USA’s most prestigious affair, attended by the Who’s Who in the data storage industry, Mobile Drives is its Keynote Dinner, which is set for Wednesday from 6:00-9:00 p.m. at the Fairmont Hotel. This year’s keynote speaker is Maxtor Corp. President and CEO Mike Cannon. Be sure to make your reservation to attend and hear why Mike thinks drive makers should change the value proposi- on the cover tion offered to customers. Keeping pace with the competition—on the race track or in the data storage industry—is I look forward to seeing everyone at DISKCON USA the week of September 20th at the San Jose the key to a winning strategy. Convention Center in San Jose Calif. Take advantage of IDEMA’s low-cost technical conference and classes to educate yourself, or attend the show at no cost to find out about the latest in new products serving the disk drive industry. As a not-for-profit association, IDEMA presents DISKCON USA to you as one of the best deals in the industry. Be sure to register at www.idema.org. MarComm Manager/Editor IDEMA Staff—U.S. Board of Directors—U.S. Nicole Flynn, [email protected] William Tan President Chairman Megatech Electronics Pte. Ltd. 408.330.8107 Larry Eischen Joel Weiss 408.330.8101 Seagate Recording Media Group Richard Wee Creative Director Quantum Asia-Pacific Pte. Ltd. Executive Director Vice Chairman Chris Carrig, [email protected] Joan Pinder John Kurtzweil Board of Directors—Japan 408.330.8110 408.330.8102 Read-Rite Corporation Treasurer Chairman Director, Education Tsuneo Suganuma Communications Chair Russ Krapf Sally Bryant, Ed.D. Hitachi, Ltd. Wayne Fortun, Western Digital Corporation 408.330.8106 Vice Chairman Hutchinson Technology Secretary Administrator Oz Fundingsland Akira Kakehi Lindsay Brown OSF International Auditor Communications Committee 408.330.8103 Gil Argentina Hideki Harada Larry Anderson, Komag Administrative Assistant Pacific Ceramics, Inc. Executive Director Adoracion Yanogacio Dave Brown, Seagate Chris Bajorek Tatsuo Sugiura Wayne Erickson, Phase Metrics 408.330.8100 Komag, Inc. Directors Jay Kimmal, HMT Technology Creative Director Wendy Dewell Yuichi Hyakusoku Christine Carrig IBM, SSD Mediken, Inc. 408.330.8110 Articles Wayne Fortun Yuichi Ino Article contributions are Finance/Database Manager Hutchinson Technology, Inc. Anelva Corporation Gloria Rodrigues welcome and are subject to Mark Geenen Hiromi Kamimura 408.330.8104 editing by IDEMA. TRENDFOCUS, Inc. Toshiba Corporation MarComm Manager Ed Grochowski Shun Kaneko Advertising Nicole Flynn IBM Almaden Research Center Iomega Japan Corporation Advertising is offered to IDEMA 408.330.8107 William Harry Shigeru Kikuchi corporate members only. Ad Marketing Assistant Exclusive Design Company Kobe Steel, Ltd. space is available for the Trudy Gressley Dennis Hill Noboru Kubokawa November/December issue, ad 408.330.8105 LSI Logic Institute of Information close October 1. Due date for Program Manager, Technology, Ltd. ad materials is October 8. Shun Kaneko Membership Iomega Japan Mikio Matsuzaki Editorial calender and advertis- Debbie Lee TDK Corporation ing rates available at: 408.330.8108 Brian Nixon Quantum Corporation Nobuhisa Onoe www.idema.org. Standards Manager Nippon Light Metal Co., Ltd. Kristen Montan Don Perettie Admat Koichi Satoh Subscription 408.330.8109 IBM Japan, Ltd. INSIGHT is produced bimonthly. Norman H. Pond IDEMA Staff—Asia-Pacific Intevac Tadashi Shinohara For your free subscription regis- Hitachi Metals, Ltd. ter online at www.idema.org. Executive Director Jim Porter S.H. Goh DISK/TREND, Inc. Akira Terada Alps Electric Co., Ltd. 65-226-3412 Barry Rossum Tetsuo Tsuru Wendy Ang Seagate Technology Hitachi Electronics Jean Tan John Schaefer Engineering Co., Ltd. Phase Metrics, Inc. ® IDEMA Staff—Japan Haruo Urai Management Committee— NEC Corporation INSIGHT is a free bimonthly Executive Director Asia-Pacific Joel Weiss association magazine, published by Tatsuo Sugiura Seagate Recording Media Group the International Disk Drive Adam Giandomenico Equipment and Materials Association Finance/Standards Lighthouse Worldwide Solutions Hideaki Yamazaki Akiko Yamamoto (IDEMA). The goal of INSIGHT is to Gary Davis Japan Representative inform IDEMA members and industry Editor/Seminar Davis Consultants Asia Organization, Inc. professionals worldwide about Naoko Miura Paul Dostie Nobuaki Yoshioka emerging technologies, upcoming Phase Metrics Pacific Pte Ltd. NEC Corporation IDEMA trade events, as well as educational opportunities. INSIGHT IDEMA—U.S. Melvin Gay is read by more than 25,000 3M Singapore Pte Ltd. engineers, scientists, and technical 3255 Scott Blvd., Suite 2-102 Gaylord Ho managers. Santa Clara, CA 95054-3013 Vector Magnetics Pte Ltd. Phone: 408.330.8100 S.C. Lee Fax: 408.492.1425 Maxtor Peripherals (S) Pte Ltd. All rights reserved. IDEMA and Teh Bong Lim DISKCON are registered trademarks IDEMA—Asia-Pacific MMI Holdings Ltd. of the International Disk Drive 53B Temple Street William Low Equipment and Materials Singapore 058598 IBM Singapore Association. Other product names or Phone: 65.226.3412 Joseph Lobo brands used in this publication are Fax: 65.226.3413 Datacom SAE Pte Ltd. for identification purposes only and may be trademarks of their Teck-Seng Low respective companies. IDEMA—Japan Magnetics Technology Centre Wataru Building, 6th Floor Kelly Tan 2-11-9, Nishi Shinbashi Wester Digital (S) Ptd Ltd. Minato-ku, Tokyo 105-0003 Japan Chang Faa Shoon Phone: 81.3.3539.7071 Seagate Technology Fax: 81.3.3539.7072 MTI Ad Leading trade analysts share their market perspective on the data storage industry. Hambrecht and Quist LLC Statistical Summary Selected Data Storage Stocks Shares Stock Calendar Year Price/Earnings Market Cal. 99 Market Out. Price Earnings Per Share Ratio Cap Revs. Cap/ Industry Sector Company (MM) 8/2/99 1997A 1998A 1999E 1998 1999 ($MM) ($MM) 99 Revs Disk Drives Maxtor 103.3 5.47 (4.28) 0.52 (1.45) 10.5x NM 565 2,376 0.2 Quantum 173.0 23.00 2.07 0.48 0.63 47.9x 36.5x 3,979 4,742 0.8 Seagate Technology 230.2 27.69 1.72 0.62 0.67 44.7x 41.3x 6,374 6,678 1.0 Western Digital 90.6 4.56 0.83 (4.28) (3.19) NM NM 413 2,788 0.1 Components HMT Technology 44.8 2.69 1.34 0.37 (1.17) 7.3x NM 121 193 0.6 Hutchinson Tech. 30.8 25.63 1.02 (1.29) 0.69 NM 37.1x 789 579 1.4 Komag 64.2 3.88 0.40 (3.51) (1.81) NM NM 249 371 0.7 Read-Rite 49.5 5.06 1.75 (2.75) (3.49) NM NM 250 711 0.4 Capital Intevac 11.8 4.75 0.95 0.01 (0.93) NM NM 56 46 1.2 Equipment Veeco Instruments ** 15.9 30.00 1.66 1.08 1.42 27.8x 21.1x 477 230 2.1 Removable Iomega 269.1 4.06 0.42 (0.15) (0.08) NM NM 1,093 1,465 0.7 Average: 11.5x 11.3x 0.8 **No official H&Q coverage; First call estimates.
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