The commentary:
SyQuest Reports Fiscal 1998 Second Quarter Results;
Increased Demand for SparQ Drive Boosts Revenue by 180%
- April 28, 1998 16:45
%SYQUEST SYQT %CALIFORNIA %COMPUTERS %ELECTRONICS %COMED %EARNINGS V%BW
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FREMONT, Calif.----April 28, 1998--SyQuest Technology Inc. (NASDAQ:SYQT), a
leading manufacturer of removable cartridge hard drives, said today net revenue for the second fiscal
quarter ended March 31, 1998 rose 180 percent, to $47.0 million, from $16.8 million in the same period
last year. Separately, this represents a 47 percent sequential increase from revenue of $32.1 million in the
first quarter of fiscal 1998.
The Company reported a reduced operating loss for the current quarter of $29.9 million as compared to an
operating loss of $32.6 million in the same period last year. The operating loss for the current quarter also
improved as compared to the immediately preceding quarter ended December 31, 1998 of $36.2 million.
SyQuest reported a net loss for the quarter of $31.7 million, or a net loss of $0.43 per share, compared to
a net loss of $34.4 million, or a net loss of $1.31 per share, for the same period a year ago and a net loss
of $39 million or a net loss of $0.57 per share, for the preceding quarter.
The Company reported net revenue for the six months ended March 31, 1998 of $79.1 million which was
an increase of approximately $14.0 million, or 21 percent, over the same period in the prior year. The net
loss for the six months ended March 31, 1998 was approximately $70.7 million or a net loss of $1.00 per
share as compared to a net loss of $47.1 million or a net loss of $2.30 per share in the same period last
year.
Edward Marinaro, SyQuest Chairman, said: "Our improved financial performance resulted from increased
revenue and greater efficiencies in manufacturing which contributed to a lower negative gross margin. The
sharp increase in net revenue resulted from the strong market acceptance of our new 1-gigabyte SparQ
storage solution. Compared to the same period last year, the total number of removable drives shipped
during the current quarter increased 297%. The number of cartridges shipped during the quarter increased
50% compared to the same period last year.
Marinaro added, "We continued to improve manufacturing yields resulting in reduced manufacturing costs
and we've made capital investments to expand our manufacturing capacity. We foresee continued volume
increases over the next several quarters to meet anticipated customer demand for SparQ. Shipments of
SyJet, the Company's 1.5-gigabyte high-performance professional storage solution, were strong during
the current quarter."
The Asian economic situation did not have a significant impact on the results of operations as the majority
of the materials were purchased with US dollars, and sales within that geographic represented only 4% of
revenue.
SyQuest's financial condition during the March quarter included a cash position of $16.6 million. Also in the
March quarter, the Company raised additional cash through the completion of its Series 7 convertible
preferred stock offering for approximately $30.0 million and through the exercise of outstanding stock
purchase warrants for approximately $17.2 million. At March 31, 1998 the Company had approximately
81.7 million common shares outstanding and approximately 51.4 million stock purchase warrants issued
and outstanding. There would be approximately 164.3 million common shares outstanding if all stock
purchase warrants and convertible preferred shares were exercised and converted as of April 15, 1998.
About SyQuest
Based in Fremont, Calif., SyQuest Technology, Inc. is the leader in removable cartridge hard drive storage
technology. The company offers the highest capacity, best performing, most affordable, and easy to use
removable hard drives and cartridges in the marketplace. SyQuest award winning products are ideal
storage solutions for SOHO/professionals, families, students, Internet users and more. SyQuest (SYQT) is
publicly traded on NASDAQ's National Market System. The company's web site is www.syquest.com.
This news release contains forward-looking statements that involve risks and uncertainties, including
competition in the marketplace for the company's products, and other risks detailed from time to time in
the SEC reports filed by SyQuest including its most recent reports on Forms 8K, 10K and 10Q.
NOTE TO EDITORS: SyQuest is a registered trademark and the SyQuest logo, SparQ, SyJet and Quest
are trademarks of SyQuest Technology, Inc. All other brands or trade names are the property of their
respective companies.
Copyright (c)1998 SyQuest Technology, Inc. All rights reserved. |
