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Disk drive manufacturer Calluna has reported it is making good progress. However, the claim, made at the company's AGM, may not be enough to rebuild confidence in the company. Last week, its shares fell nine per cent before recovering. In a statement, company chairman Alan Bates warned that it was a critical time for the company as it began production of the CT1040 Type III disk drive. "The transfer from development to production has inherent attendant risks. First orders for the CT1040 have already been received," he said. Forward orders rose to 85,000 units from 50,000 in August. Industry observers had been expecting more bullish news, one marketmaker said, and were a little disappointed. Bates said Calluna was still waiting for demand to build up for its Hardwall product, but added that it had signed distribution agreements with Effigy Solutions and Micro Central, both covering Europe, North America and the Far East. The company is also strengthening its sales and marketing teams, recruiting new staff to promote its products in Europe and the US.®

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