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Maxtor Shoots for Enterprise Growth

Maxtor Corp. (NYSE: MXO)
became the third hard drive maker to raise its guidance in the last two weeks, when its new executive team today outlined plans for bringing the troubled company to profitability.

Well, profitability certainly remains a long way off, but executives told financial analysts on a conference call that they have a 100-day plan to start the turnaround.

Maxtor forecast revenue of $980 million to $1.01 billion for the current quarter, and a pro forma loss of $42 million to $44 million. Maxtors previous guidance for the quarter was revenue from $920 million to $950 million and a loss between $45 million and $55 million, or $0.18 to $0.22 per share.

Last quarter, Maxtor reported a pro forma net loss of $58.3 million on revenues of $927.2 million. Executives said sales through major OEMs have been better than expected so far this quarter, and they expect to turn a profit on enterprise drives next year.

Seagate Technology Inc. (NYSE: STX) and Western Digital Corp. (NYSE: WDC) also upgraded guidance for the quarter. But neither of those companies had to introduce a new executive team while providing guidance -- as Maxtor did today.

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