Re: 3GB Deal
Michael, No doubt about it, the 3GB Deal will have a significant impact on future sales and margins. The alternative is more devastating however. Syquest is working within a window of opportunity and cannot afford to recover slowly. Their finances won't allow for anything but a hit product. In addition, the JAZ is temporarily weak, the SyJet currently has the press support, and most importantly, the company needs VOLUME to reduce costs and turn a profit.
One can talk about pleasing the shareholders, reduced tie ratios and near term losses, however IMO, volume is the key and Syquest must do whatever is needed to obtain it and they must do it now.
Regards - Dale |
