Looks like all of your negative stuff has now been put to rest.
I certainly hope that's an attempt at humor because I would hate to think anybody would take this press release as putting anything to rest. The pre-earnings press release is generally not a good sign but this is a particularly hollow announcement:
Syncronys Signs Strategic Marketing Agreements With Leading Hard Drive and Modem Manufacturers
The keywords here are Marketing Agreements, James.
Syncronys has entered into a marketing agreement with Western Digital who will provide cash rebates on retail hard drives as part of a major direct marketing campaign by Syncronys to launch its BigDisk product.
WD is giving cash rebates... (ah, OK, cash rebates on their own product, and?) ... as part of a major direct marketing campaign by Syncronys. Well, yes, there we go with major and strategic hyperbole again but what exactly does this mean and why haven't they spelled it out in plain English? Sounds like a coupon give-away.
''Western Digital is a household name in hard drives -- we are extremely excited about their participation in this campaign ... and will definitely build Syncronys mind share''
OK, there it is: mind share. Read: this is not a revenue generating deal but a coupon/advertisement agreement wherein they may actually be paying Western Digital. Again.
Irvine, California-based Western Digital is a leader in information storage products and services with annual revenues of $4 billion.
And this has what to do with Syncronys?
Syncronys also entered into an OEM distribution agreement with Askey Communication USA Inc. in which Askey and its parent, Askey Computer Corporation, will bundle Syncronys software products with its modems to be shipped worldwide.
OK, another give-away to establish mind share? Another we-pay-you deal wherein Syncronys pays Asskey to include there product? Again, they are intentionally not spelling this out in plain English and shareholders should be demanding clarity in these matters.
Syncronys products selected under this agreement include BigDisk, Zipper and EyeCatcher. Askey will produce the CD-ROM disks containing these Syncronys products, at no cost to Syncronys, to be enclosed with its modems. Consumers can then purchase upgrades to the full versions of Syncronys products via a toll free telephone number or on-line via Syncronys' secured website.
Asskey will produce CD-ROM disks at no cost to Syncronys? Of course, they are including a CD-ROM with as much free stuff as they can get and the fact that Syncronys products are part of that is meaningless. OK, here's the key phase again: Consumers can then purchase upgrades to the full versions of Syncronys. Read you give our stuff away and we will hope for upgrade revenue. |
