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

To: SJSharky who wrote (5522)	2/12/1998 2:38:00 PM
From: Troy Shaw	Read Replies (2) \| Respond to of 7685

All, just how much of a loss does SyQuest sell their drives for? Just for fun, lets take the 40,000 SparQ drives sold as reported, and assume that they also managed to sell 40,000 each of SyJet and EzFlyer 230. I think that is a bit high based on their revenues of only $32 million which in previous quarters had been split about evenly between cartridges and drives. Anyway, if we assume that SyQuest actually makes money on the cartridges, then the drives gross margins must be so negative as to wipe out all the positive of the cartridges and gouge an additional 8.5 million dollars out of gross margin. So unless I am missing something, with a negative gross margin of 8.5 million on a 120,000 drives sold that works out to be a loss of more than 71 dollars a drive. What a great business model.