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

To: Ralph Bergmann who wrote (5500)	2/12/1998 9:40:00 AM
From: Dale Stempson	Read Replies (3) \| Respond to of 7685

Re: >>>I think the most important point seems to be that they are not able to make profit with the selling of the sparq itself. With each sold sparq they are increasing their loss. Or am I wrong?<<< The press release clearly states Cost of Revenue well in excess of Net Revenue with a substantial increase in Cost compared to the previous quarter when there were zero SparQ shipments. One would have to assume that you are currently correct. I would not take this to indicate that future margins will follow the same course. Due to the low entry price of the SparQ, SyQuest probably based its profit model on quantities well in excess of the small number of units shipped in the quarter. The key here is that SyQuest likely needs major unit demand in order to take advantage of the benefits of volume manufacturing and turn a profit on the SparQ. Who knows where their break even point is, however, it may be not be far away. Regards - Dale