Jim, I believe that somehow, someway, sometime, Syquest will most likely pull itself out of this hole and start turning a profit. These folks seem to know how to survive. The problem with Syquest as an investment is that this all comes at the expense of the shareholder. When the dust settles, it is likely that the company will end up being a niche player in the removable drive market. IMO, Iomega doesn't today consider Syquest a competitor. They're concerned about the LS-120 and a few others. Although the SyJet will grab a piece of the JAZ market, it is important to note that the JAZ has a large headstart. The product has been out over a year, has sold over 600,000 units, and has become a standard in the music, pre-press and publishing markets. Syquest's total sales will most likely end up at a point much less than they were a year or two ago, and because of the massive share dilution that has and will continue to take place, their EPS will probably be miniscule. By the way, did you notice in the 10-Q that it appears the Legend deal is on hold for now.
Regards - Dale |
