Creating a major force in the magnetic disk head business, privately held Sunward Technologies Inc is to reverse into struggling San Diego neighbour Computer & Communications Technology Corp, which is in technical default on $8.7m of debt after reporting fourth quarter losses of $12.4m. Computer & Communications, which has 11.3m shares out, is to issue 14.5m new ones for Sunward and will take its name. The new company will have 40% of the non-captive recording heads business and employ 3,500 people with plants in the Philippines, South Korea and Puerto Rico. Sunward had sales of $42.1m last year, Computer & Communications $61.5m, but lost $17.3m.
