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Technology Stocks : SYQUEST -- Ignore unavailable to you. Want to Upgrade?

To: Ward W. Ward who wrote (5144)	12/24/1997 12:10:00 PM
From: Dale Stempson	Read Replies (1) \| Respond to of 7685

>>>Does anyone know what the margins are for any of the cartidges SyQuest produces?<<< That is the sixty-four thousand dollar question. (of course, after dilution it's more like the sixty-four cent question). Seriously, this information has never been released by Syquest. FWIW: My best guess is that they're probably now making pretty good gross margins on the SyJet and EZFlyer disks, perhaps in the twenties. Reviewing their past earnings reports and SEC filings would suggest that margins would be significantly lower however. It's it a bit early to estimate the SparQ. Until they increase demand and ramp production, they might not be making anything given their out-of-the-box low selling prices. I expect they'd be happy to make 10% GM by the end of the first half of calendar '98. BTW, for those who might argue that my guess are low and Iomega is making much larger margins on their disks, I would point out that their volume is much higher by comparison. Once again, these are only guesses on my part. Regards - Dale