The personal computer storage market is evolving so fast that Conner Peripherals Inc, San Jose is having to adjust to changed circumstances and warns that as a result, first quarter profit will be down on that for the fourth quarter, on higher sales. The company has been hit by falling demand for disk drives with capacities of 120Mb or less, with prices eroding and hitting gross margins. Conner is responding by ramping up production of its Filepro and Aegean Series of 3.5 and of new tape drives developed by Archive. It will also integrate the operations of Archive faster than planned, completing the effort by within the first half of 1993. It will also cut back production some low-margin tape and disk products.
