JTS Corp, San Jose-based hard drive manufacturer, has secured a $10m revolving credit facility with NationsBank for working capital purposes. JTS says it needs the financing to expand first-quarter production to meet increasing demand for its Champion II desktop products. In December, the company reported a third-quarter net loss of $60.6m, or $0.39 per share, on revenues of $24m for the fiscal third quarter ended November 2, 1997. The results include a one time charge of $38.0m associated with the company’s decision to suspend operations in its three-inch portable hard drive business. JTS has said that growing interest in its products from its systems integrator customers should lead it to profitability in the current first quarter. It also says that recent restructuring actions have reduced quarterly cost and expense infrastructure in excess of $10m over the past year, helping to reduce the operating break-even point from 750,000 units per quarter to approximately 350,000 units per quarter.
