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Technology Stocks : SYQUEST

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To: Joon Song who wrote (5632)2/22/1998 3:58:00 AM
From: Michael Coley  Read Replies (1) of 7685
 
RE: How Bad Can the Margins Get?

>> As the legacy cartridge revenue continues to shrinks down to zero, I think SyQuest's gross margins could actually get worse in the coming quarter. (Consider they're already negative 25%, that would be quite a feat.) <<

They've done it before. Here are some of their worst margin quarters in recent history:

Q2 97: -79.0%
Q3 96: -80.4%
Q2 96: -53.5%

Of course they've had a couple decent ones, too:

Q1 97: 22.9%
Q4 96: 22.5%

But overall, it's a sad story/trend:

1993: 36.5%
1994: 27.4%
1995: 17.0%
1996: -24.1%
1997: -0.7%
1998: -26.7% (Q1)

- Michael Coley
- wwol.com
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