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Read-Rite Posts Fourth-Quarter Loss, Cuts 11% of Workforce

Read-Rite

(RDRT)

posted a fourth-quarter loss and said it had cut 1,250 jobs, or 11% of its workforce.

The maker of magnetic recording heads for disk drives lost $4.5 million, or 4 cents a share, compared with earnings of $12.5 million, or 11 cents a share, in the year-ago quarter. Excluding charges, the company earned 4 cents a share, a penny better than expected by Wall Street analysts, according to Thomson Financial/First Call.

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Revenue for the quarter fell to $135.9 million from $190 million in the year-ago period.

The company also forecast second-quarter revenue of $65 million to $85 million and said it expects to be profitable by the end of 2002.

Shares of Read-Rite were recently down 13.8% to $3.50 in Instinet premarket trading after closing at $4.06 Wednesday.