To: Ron Flanigan who wrote (46622 ) 2/2/1998 3:57:00 PM From: Michael Coley Respond to
RE: SyQuest to buy Iomega?>> my student said Syquest was taking over Iomega. He heard it from a friend who "works in the stock market." << >> The student is a college sophomore majoring in bus/ad and presently taking my business law class, plus a stock market class from our Chairperson, and a 2nd year econ class. He appears to be a bright young man. << The Company [SYQUEST] has accumulated losses during fiscal years ended September 30, 1995, 1996, and 1997 totaling approximately $220 million. There can be no assurances that the Company will cease incurring losses despite new product introductions, as there can be no assurances that the Company's products will be accepted in the marketplace. Continued losses would result in liquidity and cash flow problems and could affect product delivery efforts. Further sustained losses will necessitate future additional financings that if raised through the issuance of equity securities, will reduce the percentage ownership of the stockholders of the Company. Existing stockholders may experience additional dilution, and securities issued in conjunction with new financings may have rights, preferences and privileges senior to those of holders of the Company's Common Stock. There can be no assurance, however, that additional financing will be available when needed, if at all, or on favorable terms. wwol.com
