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Technology Stocks : SYQUEST

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To: Stephen Leung who wrote (4741)11/10/1997 12:35:00 AM
From: Dale Stempson  Read Replies (1) of 7685
 
Re: >>>200 MB floppy - How can it affect a product that is not selling well (EZ Flyer230))? It would have more impact on the Zip sales.<<<

Stephen, Iomega certainly has more at stake here than Syquest, however with regards to the EZFlyer 230: I agree that the Flyer is probably not selling in great quantities, but as long as Syquest continues to manufacture the drive, they will need to produce at "some" volume level in order to turn a profit.

Lowered unit sales because of the competition could eventually result in Syquest selling their drive and/or disks at a loss, or having to take a charge to discontinue the products. This would be more significant than simply losing some sales since it could potentially impact every EZFlyer sold.

Regards - Dale
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