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

To: Joon Song who wrote (5210)	1/10/1998 6:16:00 PM
From: Dale Stempson	Read Replies (1) \| Respond to of 7685

Joon, I would think that Syquest spent a good deal of money in Q4-97 to ready manufacturing for the SparQ. I'm not an accountant but I would suspect that even without sales, many of the associated costs would appear in the COGS number. Perhaps someone else here could provide a definitive answer. Re: >>>Ask yourself this question: Do you think given Jaz level volume that SyQuest can manufacture drives for so much less than Iomega that they can sell drives (SyJet/SparQ) at $100-$200 less than Iomega and still make a profit?<<< Answer: Yes (qualification: they still need to increase manufacturing volume). The SparQ drive and disks are significantly different from Jaz products. A supporting argument for potential profitability here would be to look at what Castlewood Systems is expected to come out with. Their Orb product is very similar to and improves on SparQ, and yet it's proposed price is incredibly low as well. I find it hard to believe that two different companies would both be introducing these drives without a strong belief they could turn a profit. Geez Joon, see what you've got me doing... defending Syquest. Must be something I ate. Regards - Dale