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Technology Stocks : SYQUEST
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To: Dale Stempson who wrote (3493)8/4/1997 11:02:00 AM
From: D.J.Smyth   of 7685
 
Dale, you need to discover whether SYQT uses "sell through" or "sell in" to determine revenue. If they use "sell in", then any number you mention relative to revenue can be meaningless. If the drives are not being purchased at the retail chains, then those drives can be returned to SYQT. SYQT would then need to compensate for the dollar value of the returns on the next quarters earnings statement. If using "sell through", the more conservative of the two revenue assumptions, then the revenue listed with this quarter is more reliable. Revenue is only as important as the method used to calculate it.
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