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

To: Michael Coley who wrote (5363)	2/2/1998 11:27:00 AM
From: Michael Coley	Read Replies (1) \| Respond to of 7685

RE: Asia Pacific and SyQuest? I received this response in e-mail, and thought the thread might find it useful: Hi, Michael! I read your question on silicon investor about Syquest's business in SE asia and I think I can help. The following passage is taken from Syquest's K-10 annual statement (12/31/97). --------------------------------------------------------------------------------- The following tables summarize the Company's operations in different geographic areas: ADJUSTMENTS NORTH AND AMERICA EUROPE FAR EAST ELIMINATIONS CONSOLIDATED --------- ------- -------- ------------ ------------ 1997 (IN THOUSANDS) Sales to unaffiliated customers.............. $ 69,146 $43,854 $ 9,723 -- $ 122,723 Transfers between geo- graphic locations...... $ 10,370 $ 5,719 $117,503 $(133,592) -- Loss from Operations.... $ (64,125) $ 74 $ 3,759 $ (3,679) $ (63,971) Identifiable Assets..... $ 56,191 $ 4,971 $ 28,642 $ (7,155) $ 82,649 1996 Sales to unaffiliated customers.............. $ 131,122 $57,235 $ 12,050 -- $ 200,407 Transfers between geo- graphic locations...... $ 27,060 $21,718 $228,288 $(277,066) -- Loss from Operations.... $(107,274) $ 452 $(20,187) $ (3,667) $(130,676) Identifiable Assets..... $ 33,837 $ 2,536 $ 49,626 $ (10,818) $ 75,181 ----------------------------------------------------------------------------------- As you can see less than 10% of their revenues come from Asia. Syquest's main production is located in Penang, Malaysia. Syquest has approx. 1100 employees and 80% of them work outside the USA, most of them in Penang. The Malaysian Ringgit dropped more than 40% against the US Dollar in trailing twelve months. So costs for labor and parts in the region should have dropped significantly. The asian turmoil is a very positive thing for Syquest since it does lower costs of production but does not affect revenues. I wrote an article about the whole issue in misc.invest.stocks some days ago. regards from Germany Maze One quick note about the potential benefit from the lowered Ringgit: People were expecting the same benefit with Iomega, but it didn't appear to be significant. - Michael Coley - wwol.com