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For instance, our unit shipments of suspension assemblies declined from 2001 to 2002, spiked 32 percent from 2002 to 2003, were relatively flat from 2003 to 2004, and then spiked again – up 34 percent – from 2004 to 2005. Our 2006 suspension assembly shipments increased 12 percent compared with 2005.
Throughout our history, we have managed through fluctuations in demand, transitions to new technologies and changes in the composition of our customer base in the disk drive industry. Constant in this often turbulent environment has been our focus on operating excellence and continuous improvement and on solving customers’ problems through innovations derived from our engineering and technical expertise. As a result, we are able to weather turbulence and emerge from transitional periods a stronger company.
2006 was another of the challenging transitional years the industry often presents. While we achieved record levels of suspension assembly shipments and net sales in 2006, we also managed through several challenges. These included:
• Significant fluctuations in projected demand growth
• Underutilization of manufacturing capacity added in anticipation of strong demand growth
• Further consolidation among the disk drive makers as Seagate acquired Maxtor, and
• Transitions in fundamental suspension assembly and disk drive technologies requiring extraordinary investments in our processes.
2006 was also an important year for investment in our BioMeasurement Division. As fiscal 2007 began, we were beginning the commercial introduction of our InSpectra™ StO2 Tissue Oxygenation Monitor in targeted trauma and emergency medicine markets.
Looking ahead, we expect the actions we are taking to develop new manufacturing capabilities and diversify our business will be rewarded with a further strengthening of our competitive position in the disk drive industry and substantial new opportunities in the medical market. |
