New press release
SyQuest Forms Long-Term Partnership With SAE to Supply Key Drive Components
FREMONT, Calif. -- January 9, 1998 - SyQuest Technology, Inc., (NASDAQ:SYQT) today announced that it has formed a long-term partnership with recording-head manufacturer SAE to supply heads for the company's family of rigid removable cartridge products.
Under the terms of the agreement, SAE will be the main supplier of advanced recording heads for SyQuest's SparQ™ drive, as well as the award-winning SyJet™ drive. SAE will provide volume production of the recording heads for a minimum period of three years. They also will supply head stack assemblies (HSA) for all SyQuest drives, including SparQ and the recently announced 4.7 gigabyte Quest™ product.
The agreement also calls for SAE to expand its current equity position in SyQuest as a partial form of compensation.
"This agreement with SAE is significant in many ways," said Ed Marinaro, SyQuest chairman. "First, it allows us to maintain the stream of vital parts to our existing drives; second, it provides the company with a parts sourcing cost reduction path that will directly affect our bottom line."
About SAE
SAE, manufacturer of DMIG, TFI and MR recording heads was founded in 1980. SAE was acquired by TDK in 1987 and now operates as a wholly owned subsidiary, headquartered in Hong Kong with seven manufacturing sites in the People's Republic of China and Thailand |
