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Technology Stocks : SYQUEST

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To: Gary Wisdom who wrote (6274)4/29/1998 3:57:00 AM
From: Dale Stempson  Read Replies (4) of 7685
 
CC Information (#5)

When asked about material cost reductions and where that will kick in, the response was that they were not comfortable talking about future gross margins.

They still have scrap and rework to improve on but will not disclose any level of detail.

EZFlyer 230s will be offered for a long time into the future but the drive is not profitable at $149.

When asked about their tie-ratio they did not know that demand level or their tie-ratio although the attach rate is considered to be very important and the mix is hurting gross margins.

When asked about GM and OP margins if their sales were to reach $100 million, they thought it would be best not to answer.

Compared to the fixed drive industry, SyQuest margins will be impacted by higher sales and marketing expenses.

When asked about backlog, they were not prepared to say what it is.

Regards - Dale
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