Tandon lost one IBM contract but gained another.

The company said its biggest customer quit buying certain types of disk drives sooner than expected. IBM’s purchase of the hard- and floppy-disk drives accounted for 58% of Tandon’s net sales last year. Tandon said IBM will begin buying newly developed drives in the third quarter to replace those it canceled, but the lost business in the interim “will adversely affect sales and income” for the second quarter ending March 30 and possibly the third quarter.