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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 8, 1994
APPLIED MAGNETICS CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware 1-6635 95-1950506
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(State of other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
Registrant's telephone number, including area code: (805) 683-5353
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Item 5. Other Events
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On November 8, 1994, the Registrant issued a press release, dated November
8, 1994, announcing that the Registrant had entered into a definitive agreement
for the sale of the Registrant's tape head subsidiary to Seagate Technology,
Inc. for twenty-one million five hundred dollars ($21,500,000) in cash. The
transaction is subject to approval under the Hart-Scott Rodino Act and other
Closing conditions and is expected to close by the end of December, 1994. The
Registrant and Seagate will also enter into a broad patent cross-license and
certain other agreements under which the Registrant and its subsidiary, Applied
Magnetics Korea, Ltd., will produce and sell to Seagate certain tape related
products and components. Of the sale proceeds, $6,500,000 will be held in
escrow pending completion of certain post closing obligations under these
agreements.
Item 7. Financial Statements and Exhibits
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(c) Exhibits
20. Press Release, dated November 8, 1994, announcing the matters
described in Item 5.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
APPLIED MAGNETICS CORPORATION
Date: November 8, 1994 By: /s/ CRAIG D. CRISMAN
________________________________________
Craig D. Crisman
Chief Executive Officer
Chief Financial Officer
(Principal Financial Officer)
Date: November 8, 1994 By: /s/ PETER ALTAVILLA
________________________________________
Peter Altavilla
Corporate Controller
(Principal Accounting Officer)
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EXHIBIT INDEX
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Page Number In
Sequential Numbering
Exhibit System
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(20) Press Release, dated November 8, 4-5
1994, announcing that the Registrant
had entered into a definitive agreement
for the sale of the Registrant's tape
head subsidiary to Seagate Technology,
Inc. for twenty-one million five
hundred dollars ($21,500,000) in cash.
The transaction is subject to approval
under the Hart-Scott Rodino Act and
other Closing conditions and is expected
to close by the end of December, 1994.
The Registrant and Seagate will also
enter into a broad patent cross-license
and certain other agreements under which
the Registrant and its subsidiary,
Applied Magnetics Korea, Ltd., will produce
and sell to Seagate certain tape related
products and components. Of the sale
proceeds, $6,500,000 will be held in
escrow pending completion of certain post
closing obligations under these agreements.
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[LETTERHEAD OF APPLIED MAGNETICS]
FOR IMMEDIATE RELEASE Contact: Craig D. Crisman
President and
Chief Executive Officer
805/683-5353
GOLETA, CALIFORNIA, November 8, 1994 - APPLIED MAGNETICS CORPORATION
(APM:NYSE) today announced that it has entered into a definitive agreement to
sell its tape head subsidiary to Seagate Technology, Inc. for $21.5 million in
cash. The transaction, which is subject to approvals under the Hart Scott-
Rodino Act and other closing conditions, is expected to close by the end of
December. Under the agreement, Applied Magnetics and Seagate will also enter
into a broad patent cross-license and certain other agreements under which
Applied Magnetics and its subsidiary, Applied Magnetics Korea, Ltd., will
continue to produce and sell to Seagate certain tape related products and
components. Of the sale proceeds $6,500,000 will be held in escrow pending
completion of certain post closing obligations under these agreements.
The Company's tape head operations presently, located in Santa Maria,
California, have been producing and selling recording tape heads for the data
storage industry since the late 1950's. For the fiscal year ended September 30,
1994, the tape head sales were approximately $18.8 million or 7% of Applied
Magnetics' consolidated sales for the period. The Santa Maria facility employs
about 70 persons. The Company has been informed that Seagate's present
intentions are to centralize general management, marketing and product design
and development activities for its tape head component business at this site.
The tape head unit produces conventional 9-track tape heads and a number of
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advanced technology products including magnetoresistive (MR) thin film tape
heads.
Craig D. Crisman, President and Chief Executive Officer, stated, "This sale
is consistent with the Company's objective of focusing its efforts and resources
on its core business, the production and sale of ferrite, thin film and MR disk
heads, and will provide the Company with additional capital resources to
accomplish this objective."
Applied Magnetics Corporation, headquartered in Goleta, California, is a
major independent supplier of magnetic recording heads for disk drive
applications for the worldwide data storage segment of the computer industry.
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