Komag Provides Updated Outlook for the First Quarter of 2007
March 21 2007 - 4:27PM
PR Newswire (US)
Company also Announces Stock Buyback Program SAN JOSE, Calif.,
March 21 /PRNewswire-FirstCall/ -- Komag, Incorporated
(NASDAQ:KOMG), a leading independent supplier of thin-film media
for disk drives, is updating its business outlook for the first
quarter of 2007. The company has also announced that its board of
directors has approved a stock buyback program covering up to $200
million of Komag's common stock and that, subject to first raising
additional financing, it will call for redemption of the remaining
$80.5 million aggregate principal amount of its outstanding 2.0%
convertible subordinated notes due 2024. (Logo:
http://www.newscom.com/cgi-bin/prnh/19990816/KOMGLOGO ) The
company's previous outlook for the first quarter of 2007 was for
revenue to be down approximately 2% to 3% over the fourth quarter
of 2006, with expected net margin of between 12% and 14%. The
company now expects total revenue to be slightly above its total
revenue for the fourth quarter of 2006 and net margin to be
somewhat below the midpoint of the prior guidance of 12% to 14%.
The expected net revenue and net margin include effects of the sale
of some precious metal inventory. The company has also continued to
increase its inventories of precious metals to support the
production ramp of its PMR media. Repurchases under the stock
buyback program will occur through open market purchases, privately
negotiated transactions and/or transactions structured through
investment banking institutions as permitted by securities laws and
other legal requirements. The program allows the company to
repurchase shares at its discretion. Market conditions will
influence the timing and number of shares repurchased. About Komag
Founded in 1983, Komag is a leading independent supplier of
thin-film disks, the primary high-capacity storage medium for
digital data. Komag leverages the combination of its world-class
U.S. research and development center and Malaysian manufacturing
operations to produce disks that meet the high-volume, stringent
quality, low cost and demanding technology needs of its customers.
By enabling rapidly improving storage density at ever-lower cost
per gigabyte, Komag seeks to create extraordinary value for
consumers of computers, enterprise storage systems and electronic
appliances such as digital video recorders, game boxes and consumer
electronic storage systems. For more information about Komag, visit
Komag's Internet home page at http://www.komag.com/. The Investors
section of the website provides a variety of financial and investor
information, including an investor presentation. To request an
investor packet, call Komag's Investor Relations at 408-576-2901.
Forward-Looking Statements This press release contains certain
"forward-looking" statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and are subject to the
safe harbors created thereby. These statements represent the
company's current judgment and include, but are not limited to,
statements that total revenue in the first quarter of 2007 is
expected to be slightly above total revenue for the fourth quarter
of 2006, net margin in the first quarter of 2007 is expected be
somewhat below the midpoint of the previously stated range of 12%
to 14%, the expectation that the company may raise additional
financing, and subject to raising additional financing, the company
will call for redemption of the outstanding 2% convertible
subordinated notes due 2024. 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, changes in customer demand
relative to existing commitments and prior forecasts, the ability
of the company to raise financing on attractive terms and timing of
such financing, the company's ability to achieve operating yield,
cost and profitability targets, changes in the currency exchange
rate for the Malaysian ringgit as a result of the managed float
system, continued customer demand and the impact of demand
variation on factory utilization, the performance by the company
and customers of their obligations under the respective increased
capacity arrangements, changes in demand, changes in the price and
availability of raw materials (including ruthenium which has
recently experienced significant price increases), sales of excess
raw materials inventory, the company's ability to increase
capacity, variability in demand and associated impact on average
selling price of disks, the company's ability to satisfy customer
qualification requirements and meet shipping demands, the company's
expectation that industry unit demand will continue to grow and not
decline and the company's ability to produce new generation disks
in volume and the other factors described in the company's reports
filed with the Securities and Exchange Commission, including, but
not limited to, our most recent Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q. Komag undertakes no obligation to
update forward-looking statements to reflect events or
circumstances occurring after the date of such statements.
http://www.newscom.com/cgi-bin/prnh/19990816/KOMGLOGO
http://photoarchive.ap.org/ DATASOURCE: Komag, Incorporated
CONTACT: Investors and Press, Kathy Bayless, Chief Financial
Officer of Komag Incorporated, +1-408-576-2000, or Web site:
http://www.komag.com/
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