In their fiscal 97 1st quarter results (attached & please review), you'll
notice that while there is a drop in their loss per share, the biggest concern in
their financials is the drop in their revenues from 78 mil to 48 mil.
It seems that SYQT has had problems in their manufacturing segments
pertaining to the actual delivery of the products. However, I can
substantiate that their syjet drives have been available at COMPUSA.
Futhermore, the increase in the amount of bank borrowings also concern me (from 6mil to
20mil borrowed) since this indicates a need for cash infustion. On the
positive side, there have been ads promoting their products in newspapers
(Times) last week. To be honest with you, SYQT will be another "show
me" regarding its ability to improve EPS as well as their stream of
revenue. It is interesting to note that the past three days of this
issue have had the largest volume in trading in about a year. As for
increase in price, it's a possibility based on their upcoming quarter.
Best of luck to all....
<< SYQUEST TECHNOLOGY, INC.
CONSOLIDATED CONDENSED INCOME STATEMENT
(In thousands, except per share data)
(Unaudited)
Three Months Ended
December 31,
1996 1995
Net Revenues $ 48,312 $ 78,667
Cost of revenues 37,267 87,929
Gross Profit (loss) 11,045 (9,262)
Operating Expenses:
Selling, general and administrative 11,328 14,464
Research and development 5,100 7,160
Total operating expenses 16,428 21,624
(Loss) from operations (5,383) (30,886)
Interest income (expense) (1,431) 85
(Loss) before income taxes (6,814) (30,801)
Provision for income taxes -- 3,000
Net (loss) $ (6,814) $ (33,801)
(Loss) per share $ (0.86) $ (2.98)
Common and common equivalent shares
used in computing per share amounts 14,673 11,324
The computation of earnings per share for the quarter ending
December 31, 1995, includes two adjustments increasing the loss
attributable to common shareholders and which aggregate $6.0 million.
A one-time adjustment of $5.3 million is for the "imbedded yield"
representing the discount on the assumed potential conversion of the
Cumulative Convertible Preferred Stock, Series 1 and the 5%
Cumulative Preferred Stock, Series 2, both of which were issued
during the quarter ended December 31, 1996. The second adjustment
of $0.6 million is for dividends payable on the company's preferred
stock issues that require payment of cumulative dividends.
SYQUEST TECHNOLOGY, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(In thousands)
(Unaudited)
December 31
1996 1995
Current assets:
Cash and cash equivalents $ 14,259 $ 11,201
Accounts receivable, net 34,921 63,522
Inventories, net 22,264 36,018
Other current assets 3,135 12,726
Total current assets 74,579 123,467
Net plant, property, equipment and
leasehold improvements 26,476 31,280
Other assets 839 3,093
$101,894 $157,840
Current liabilities:
Bank borrowings $ 19,789 $ 6,013
Accounts payable 16,080 59,587
Accrued compensation and other
liabilities 20,448 33,856
Current portion of long-term debt 18,573 --
Total current liabilities 74,890 99,456
Deferred income taxes, etc. 160 8,997
Long-term debt 17,102 --
Stockholders' equity:
Preferred stock 5 --
Common stock 16 13
Additional paid in capital 149,500 79,489
Treasury stock (12,855) (12,855)
Retained (deficit) (126,924) (17,260)
Total stockholders' equity 9,742 49,387
$101,894 $157,840>> |
