SYQUEST Message Board - Msg: 1991106

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Technology Stocks : SYQUEST

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To: RagTimeBand who wrote (3736)	8/18/1997 12:38:00 AM
From: Michael Coley	of 7685

RE: LS-120 more of a threat to IOM than to SYQT? >> Isn't it true that IOM's biggest money maker is the ZIP drive? >> If that's the case I'd say the LS-120 is a much bigger threat to >> IOM than it is to SYQT? Yes, Zip is clearly Iomega's biggest money-maker. According to my calculations, Zip accounts for about 60% of revenues and 70% of gross margins. I would agree that the LS-120 is more of a threat to IOM than to SYQT, but for different reasons than you are implying. LS-120 is not a threat to SYQT because SyQuest has already conceded the low-end consumer market to Iomega. They are instead focusing on the smaller high-end markets with their SyJet product. I don't consider the LS-120 much of a threat to Iomega OR SyQuest because 1) it is more expensive, 2) it is more complex with three heads, 3) backwards compatibility has never been an issue, 4) it is considerably slower, and 5) it has not had any market support. In the words of Kim Edwards (from their latest conference call), "The LS-120 today is comparable to where it was 3 months ago which is comparable probably to where they were 6 months ago." Here are some speed comparisons: pacificserv.com - Michael Coley - i1.net

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