SYQUEST Message Board - Msg: 2424369

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Technology Stocks : SYQUEST

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To: Raven McCloud who wrote (4251)	10/12/1997 3:13:00 PM
From: Michael Coley	of 7685

RE: SyQuest selling products below cost. >> Is SYQT selling their products for more or about the same << >> than it cost to produce them? << Actually, they are selling products below cost. If you look at their quarterly reports, you'll find that the gross margins are often negative. Yearly Gross Margin Numbers: 6/97 YTD = -1% 9/96 YE = -24% 9/95 YE = 17% Quarterly Gross Margin Numbers: 6/97 QE = +0% 3/97 QE = -79% 12/96 QE = 23% 9/96 QE = 22% 6/96 QE = -80% 3/96 QE = -54% 12/95 QE = -12% 9/95 QE = -5% 6/95 QE = 27% 3/95 QE = 28% 12/94 QE = 24% It certainly looks like their negative margin trend is starting to fade, but keep in mind that this isn't profit. They still have to make enough to cover SG&A and R&D before they have any profit. 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. - Michael Coley - i1.net

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