RE: Surprising Analyst Comments
During the Iomega Analyst Conference Call today, analyst Howard Rosencrans of H.D. Brous made a number of comments regarding SyQuest. Rosencrans researches both SYQT and IOM.
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You can listen to the replay at: vcall.com (you must register, but it only takes 15 seconds and is free).
Note: There are two Iomega CCs you can listen to:
a) Iomega Corporation - Quarterly Results - July 16, 1998 - 4:30 PM EDT
b) RadioWallStreet - Analyst Conference Call on Iomega Corp - July 16, 1998 - 6:30 PM EDT
Rosencrans' comments can be heard about 10 minutes into: b) the Analyst CC.
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In addition to the audio replay, the actual transcript of both CCs will soon be available to read on the Vcall site. Please listen or read the analyst's comments for yourself, but for now, here's a brief summary in my words:
* SyQuest is not expected to be profitable in any quarter this calendar year
* SparQ sales are already beginning to stagnate
* SyQuest revenues for the June quarter are expected to be relatively flat with the March quarter at around $50 million
* SparQ shipments for the June quarter are running somewhere around 150K units
* December quarter SparQ shipments are estimated to be around 275K, well below SyQuest's forecast of 500K units
* SyQuest must reach 400K to 500K SparQ units per quarter to reach profitability
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If these estimates are correct, SyQuest is in deep, deep trouble (IMO).
Regards - Dale |
