Quantum Has One Tough Hurdle To Leap

When Stephen M. Berkley took over as chairman of computer hard disk-drive maker Quantum Corp. in 1987, he knew he was in for a tough slog. For three years, sales had been mired at about $120 million. And because it was late with its new generation of drives--ones with 3 1/2-inch platters instead of 5 1/4-inch--Quantum had lost all but two of its customers. When the drives finally came out in 1988, the market was glutted and prices were crashing. "We had to do something pretty dramatic," Berkley recalls.

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