Kunal
>>To justify this valuation, with the slim margins they have they will have to sell >50 million SPARQs next year, which will happen when hell freezes over.<<
A couple of points: Syquest isn't a one product company; and Neither you nor I know what the margins will be on the SparQ package.
There's one other point the SYQT bears would just as soon forget:
From a June 4 press release:
SyQuest Drives Selected As China's State Education Standard
FREMONT, Calif. -June 4, 1997- SyQuest Technology Inc., (NASDAQ:SYQT), a world leader in removable cartridge hard drive technology, today announced that China's State Education Commission has signed a letter of intent to install SyQuest removable cartridge hard drives at all higher learning institutions in that country.
Under the terms of the letter, SyQuest's award-winning EZFlyer 230 and SyJet 1.5-GB removable cartridge hard drives will be used with computer systems in China's more than 1,600 institutions of higher learning, provided evaluations currently under way are completed successfully.
"Considering the growth demands on our education system, we expect that by the end of 1998 we will have installed more than 50,000 SyQuest drives into our higher learning institutions," said Mr. Lui Xue Ta, director, Education Technology Development Department, State Education Commission of China. "In addition, we will extend the installation of SyQuest products to the other 900,000 institutions and schools all over China."
"The benefit of removable cartridge technology in China is that it provides an immediate solution for communication between an ever-increasing number of computers -as the country's network infrastructure expands," said Ed Harper, SyQuest president and CEO. "We are pleased to have the opportunity to make a contribution to China's education system by enhancing the computer technology available to students."
Regards - Emory |
