SYQUEST Message Board - Msg: 3245349

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Technology Stocks : SYQUEST

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To: Gutterball who wrote (5269)	1/23/1998 6:11:00 PM
From: Michael Coley	Read Replies (1) of 7685

RE: SyQuest Stealing Market Share From Iomega? Dan, SyQuest and Iomega aren't even in the same league anymore. Maybe they were three years ago when Iomega's flagship product was Bernoulli, but not anymore. There's a magnitude of difference between Iomega and SyQuest: Iomega just completed a $550 million dollar quarter. SyQuest hasn't seen a $50 million dollar quarter for how long? (At least two years!) Iomega just completed a year with $115 million in earnings. SyQuest hasn't seen positive earnings for how long? (At least two years!) Iomega has $200 million cash in the bank. SyQuest has raised almost that much cash (through stock dilution) this year, but where is it now? Iomega reports that they have sold 12 million Zip's in the last three years. SyQuest quit reporting drives, but instead reports 17 million cartridges in the 16 year life of the company. In order to be a threat to Iomega, they'll have to grow, not stagnate. Take a look at Iomega and SyQuest's quarterly sales numbers of the past five years. Look at them side by side. I don't think anyone can make an argument that either company stole market share from the other. Both were stumbling along at about the same sales volume until Zip arrived almost three years ago. Then, Iomega built a completely new market and the old market that SyQuest and Iomega previously shared slowly shrunk. SyQuest is still aiming for that market. - Michael Coley - wwol.com P.S. I hope you don't take this discussion personally. I've enjoyed our exchange here, and hope that we've both learned more about SYQT and IOM. I've been a very consistent SYQT bear over the past year, although I haven't had the courage to short it [or anything else].

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