Applied Magnetics to Buy DAS Devices

Applied Magnetics Corp., a maker of computer disk-drive parts, agreed to buy closely held DAS Devices Inc. to gain its semiconductor technology. Applied Magnetics said it will pay 13 million of its common shares for Milpitas-based DAS Devices, valuing the transaction at $90.2 million, based on the closing price of Applied Magnetics shares Tuesday of $6.94. Goleta-based Applied Magnetics makes heads that read computer disk drives. Applied Magnetics shares rose 69 cents to close at $7.63 on the New York Stock Exchange. Applied Magnetics shares have fallen about 60% from a 52-week high of $17.81. Applied Magnetics and DAS officials weren’t available for comment. Applied Magnetics sales fell by more than half to $183.6 million for the year ended Oct. 3 from $494.8 million in fiscal 1997. Sales of the company’s magnetic heads fell after International Business Machines Corp. entered the market this year, said Ted Flomenhaft, an analyst at L. Flomenhaft & Co.