HMT Technology Corp, which reported its second quarter results yesterday, has renewed a long-standing supplier agreement with Iomega Corp for Iomega’s new high-end 2Gb Jaz removable storage drives. HMT, a thin film disk designer and manufacturer, has been a supplier to Iomega since the Jaz drive was first launched back in 1995 and last year the company saw sales almost tripled, largely on the back of Iomega’s phenomenal success. Iomega now accounts for as much as 32% of net sales, with Samsung Electronics Corp accounting for 28% and Western Digital Corp 19%. The company also renewed its agreement with Western Digital in advance of reporting its results. Having three customers dominating its fortunes is a highly exposed position – though HMT says it’s a situation likely to continue, though the identity of the customers will change from time to time. In 1996, for instance, Maxtor Corp accounted for up to 43% of HMT’s business, and has now fallen below the 10% level. Other customers include Quantum Corp and Hewlett-Packard Co. The second quarter fiscal 1998 figures showed net sales up to $90.4m, up 46% from the same quarter last year, generating net profits for the quarter up 9% at $19.1m.
