Read-Rite CEO gets into growth
SAN FRANCISCO (CBS.MW) -- Read-Rite Chief Executive Officer Alan Lowe waxed positive about the future growth prospects for the magnetic-recording-head supplier.
Lowe told a crowd of investors and analysts during a presentation at the Banc of America Securities Investment Conference in San Francisco on Thursday that he expects huge unit growth potential for Read-Rite's (RDRT: news, msgs) December quarter, as well as the possibility of profitability.
Lowe added that the company is hiring people as fast as it can for its wafer fabrication facility.
For the September quarter, the CEO said Read-Rite has a "lot of product to ship in the last 10 days of the quarter."
Additionally, Lowe talked about Read-Rite's recent formation of an independent fiber optic company called Scion Photonics which he said hopes to go public.
Scion received funding from Tyco, which will make a presentation at the conference later Thursday.
Read-Rite Corp <RDRT> said late on Wednesday it has formed a new fibre optics company, Scion Photonics Inc, with $25 million in initial funding from Tyco Ventures and Integral Capital Partners. Read-Rite also said it was in discussions with several other interested parties for more technology and capital investments into Scion.
Scion's business charter is "to design, manufacture and market high-performance optical components to the fibre optics communications market," Read-Rite said in a statement.
Scion will act as a separate company, but will have access to Read-Rite's resources and manufacturing infrastructure, Read-Rite chairman Cyril Yansouni said in a statement. Read-Rite is contributing its Milpitas, California wafer fabrication plant, technical and management resources and its knowledge and experience in thin-film technology and materials science to Scion, which will be based in Milpitas.
Tyco Ventures, the venture capital unit of Tyco International Ltd. <TYC>, invested $15 million in Scion and also invested $15 million in Read-Rite through a private placement with the company, Tyco Ventures president Richard Kashnow said in a statement.
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