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Technology Stocks : SYQUEST

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To: Ginn who wrote (4244)10/12/1997 10:07:00 AM
From: Michael Coley   of 7685
 
RE: Math and English Lessons.

>> I am not try to embarass you for your calculation. You should go <<
>> take some math lessons before speak in this thread, otherwise you <<
>> just even show the weakness for IOM. <<


I'll tell you what... I'll go double check my college degree to make sure that I had a minor in mathematics if you'll take some English lessons. You have no room to criticize others.

>> If you see that IOM already ships 1 million of units, That means <<
>> JAZ only sell 40,000 units per month for last 24 months. <<


Gee, and if SyQuest has shipped only 100,000 SyJets in the last 100 years, that's only 1000 SyJet's shipped per year.

If you'll read a little closer, you'll see that the 1 million unit announcement came within 20 months of the introduction of Jaz. That's 1,000,000 / 20 = 50,000 per month, exactly as I stated.

>> Then how can you point that JAZ sold for 20[0],000 per quarter. <<
>> (40,000 times 3= 200,000?) <<


As I pointed out in my original message, Iomega sales doubled over that time period. I'm assuming that most of their product lines likely doubled over that time period. (Ditto was flat, Zip appears to have doubled based on unit sales, Jaz is just a guess.). I think that's a reasonable assumption to make. If Jaz sales did double over that time, that would give monthly sales of about 33,000 in the beginning and 67,000 in the recent months. At 67,000 per month, that's 200,000 per quarter. If you would rather use 50,000 per month in your calculations, you'll still find that Jaz is still the market leader with 150,000 units per quarter.

Standard Disclaimer: For the record, I hold no position in SYQT and am long on IOM. I am very bearish on SYQT, primarily due to massive dilution, intense competition, and negative cash flow.

For SyQuest to reach Jaz sales levels with SyJet, their sales would have to increase to about $100 million per quarter (assuming a $200 wholesaler price on SyJet, 50-50 split between drive and cartridge sales and SyJet as 80% of SyQuest's product line). And Iomega is a rapidly moving target...

- Michael Coley
- i1.net
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