At last, the humor indicator! This might just be what SYQT needs to get moving again. It seems that whenever an SI thread starts to burn out and, cynicism and humor begin to take hold, the time is ripe for new activity. Perhaps the only question is: Which direction?
It appears Syquest is doing most everything possible within their resource base to turn things around. The products have the right specs. The pricing is now very competitive. The marketing has improved significantly. Hmmmm, all this actually sounds pretty good.
But one has to wonder if they've simply arrived too late to the party. I continue to believe that volume is the key to their success. If the company can show a significant increase in sales volume and/or convincingly forecast a scenario of future sustained revenue growth, then it is possible this quarter could be the turning point.
I am not implying profitability, as it's going to cost them plenty this quarter to finance their program. Turning a profit could be within sight however if the volume is there.
On the other hand, if unit sales are not there, then things could get ugly. Lowered margins due to price cuts along with increased marketing expenses could burn their existing cash in short order. Then what, more dilution?
In any case, and this is just my opinion of course, but I'm beginning to think that this quarter is the one that will determine Syquest's future.
Good luck no matter how it plays out.
Regards - Dale |
