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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
March 16, 2000
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Date of Report (date of earliest event reported)
KOMAG, INCORPORATED
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(Exact name of Registrant as specified in its charter)
Delaware 0-16852 94-2914864
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(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation or organization) Identification No.)
1710 Automation Parkway
San Jose, California 95131
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(Address of principal executive offices)
Registrant's telephone number, including area code: (408) 576-2000
N/A
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
Komag, Incorporated issued a press release on March 16, 2000, announcing
resolution of a tax matter and the related adjustment to earnings in the fourth
quarter of the fiscal year ended January 2, 2000 and a change to projected
results for the current fiscal quarter, which is filed as Exhibit 99.1 hereto.
Item 7. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits.
99.1 Text of press release dated March 16, 2000.
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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.
Komag, Incorporated,
a Delaware corporation
Dated: March 20, 2000 By: /s/ Thian Hoo Tan
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Thian Hoo Tan
President and Chief Executive Officer
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EXHIBIT INDEX
Exhibit Number Description
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99.1 Text of press release dated March 16, 2000.
FOR IMMEDIATE RELEASE
San Jose, California (March 16, 2000): Komag, Incorporated (Nasdaq: KMAG),
a technical leader in the disk drive component industry, today announced that
shipments in the first quarter of 2000 will exceed previous estimates. At the
same time the company announced the upward revision of its financial results for
the fourth quarter and fiscal year ended January 2, 2000 due to the favorable
resolution of certain income tax audits.
Improved First Quarter Outlook
At the time of the announcement of the company's fourth quarter 1999
results on January 25, 2000, the company expected first quarter 2000 unit
shipments to be sequentially flat compared to the 8.9 million units shipped in
the fourth quarter of 1999. Currently the company expects unit shipments will
actually increase between 12% and 18%. "There is strong demand for our 10
gigabyte ("GB") per platter disks, especially in 7200 RPM drive platforms," said
T.H. Tan, Komag's president and chief executive officer. "The performance
advantages of these fast drives is particularly attractive in the mainstream of
the desktop market. Further our current expectation is that the strong demand we
are now experiencing will continue into the second quarter."
"In addition to strong shipment performance, the positive impact of our
restructuring activities is beginning to improve our financial results. As a
result of the high utilization of our Malaysian factories we have achieved
significantly lower production costs. While we do not expect to become
profitable at current volume levels, our first quarter financial results should
show a significantly lower operating loss than in any quarter last year," added
Mr. Tan.
Favorable Resolution of Income Tax Audit
In February 2000, the company obtained favorable resolution of certain
income tax return audits that were in process at the end of its last fiscal
year. These audits were resolved with no taxes owed by the company. As a result,
the company has reduced its related recorded tax liability as of January 2, 2000
by $27 million. Because this settlement occurred subsequent to the company's
announcement of fourth quarter and fiscal 1999 results but before the filing of
the company's Annual Report on Form 10-K for such periods, generally accepted
accounting principles require the company to reflect the impact of this change
in estimate on its financial results for the fourth quarter and fiscal year
ended January 2, 2000.
After recording this change in estimate, net income for the fourth quarter
of 1999 was $5.9 million, or $.09 per share, based on 65.6 million shares
outstanding. This compares to the previously reported net loss of $21.1 million,
or $.32 per share based on 65.4 million shares outstanding. The revised net loss
for fiscal 1999 was $283.0 million, or $4.54 per share based on 62.3 million
shares outstanding. The previously reported net loss for the fiscal year was
$310.0 million, or $4.98 per share based on 62.3 million shares outstanding. The
preceding per share amounts are on a fully diluted basis.
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Forward Looking Statements
The above information contains predictions, estimates and other
forward-looking statements that involve a number of risks and uncertainties.
While this outlook represents Komag's current judgment on the future direction
of the business, actual results may differ materially from any future
performance suggested above. In particular, the composition and volume of actual
shipments during the first and second quarters of 2000 and actual financial
results may vary from expectations. Other risk factors that may affect the
company's financial performance are listed in the company's various SEC filings,
including its Form 10-K for the year ended January 3, 1999. The company
undertakes no obligation to publicly release any revisions to these
forward-looking statements.
About Komag
Founded in 1983, Komag, Incorporated has produced over 435 million
thin-film disks, the primary storage medium for digital data used in computer
disk drives. The company is well positioned as the broad-based strategic
supplier of choice for the industry's leading disk drive manufacturers. Through
its advanced development facilities in the United States and high volume
production factories in Southeast Asia, Komag provides high quality,
leading-edge disk products at a low overall cost to its customers. These
attributes enable Komag to partner with customers in the execution of their
time-to-market design and time-to-volume manufacturing strategies.
For more information about Komag, visit Komag's Internet home page at
http://www.komag.com or call Komag's Investor Relations 24-hour Hot Line at
888-66-KOMAG or 408-576-2901
