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

To: Mark Meytin who wrote (6233)	4/28/1998 4:58:00 PM
From: Spaw	Read Replies (1) \| Respond to of 7685

Here it is: SYQUEST TECHNOLOGY, INC. CONSOLIDATED CONDENSED STATEMENTS OF RESULTS OF OPERATIONS (In thousands, except per share data) Three Months Ended Six Months Ended March 31, March 31, 1998 1997 1998 1997 Net revenues $ 47,028 $ 16,786 $ 79,089 $ 65,097 Cost of revenues 52,241 30,051 92,874 67,317 Gross loss (5,213) (13,265) (13,785) (2,220) Operating Expenses: Selling, general and administrative 21,156 12,730 44,896 24,057 Research and development 3,540 6,617 7,418 11,718 Total operating expenses 24,696 19,348 52,314 35,775 Loss from operations (29,909) (32,613) (66,099) (37,995) Interest expense, net (674) (1,106) (1,299) (2,538) Loss before income taxes (30,583) (33,719) (67,398) (40,533) Provision for income taxes 873 -- 873 -- Net loss $(31,456) $(33,719) $(68,271) $(40,533) Value assigned to warrants issued in connection with preferred stock offerings (2,100) Preferred stock dividend (251) (691) (331) (1,264) Effect of incremental yield embedded in conversion terms (5,300) Net loss applicable to common shareholders $(31,707) $(34,410) $(70,702) $(47,097) Basic and diluted loss per share $ (0.43) $ (1.31) $ (1.00) $ (2.30) Weighted average shares 72,973 26,206 70,982 20,466 SYQUEST TECHNOLOGY, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (In thousands) March 31, September 30, 1998 1997 Assets Current assets: Cash and cash equivalents $ 16,559 $ 7,083 Accounts receivable, net 33,072 19,535 Inventories, net 36,154 26,737 Prepaid expenses and deposits 8,757 6,049 Total current assets 94,542 59,404 Net property, equipment and leasehold improvements 25,597 22,999 Other assets 229 246 -------- -------- $120,368 $ 82,649 Liabilities and Stockholders' Equity Current liabilities: Short term borrowings $ 25,483 $ 23,291 Accounts payable 36,466 14,800 Accrued expenses and other liabilities 16,671 15,532 Current portion of long-term debt 3,387 4,345 Total current liabilities 82,007 57,968 Long-term liabilities and Stockholders' equity 38,361 24,681 -------- -------- $120,368 $ 82,649 CONTACT: Miller/Shandwick Technologies Eric Deritis/Fred Hoar, 650/596-5800 ederitis@miller.shandwick.com

To: Mark Meytin who wrote (6233)	4/28/1998 5:00:00 PM
From: Spaw	Read Replies (3) \| Respond to of 7685

The commentary: SyQuest Reports Fiscal 1998 Second Quarter Results; Increased Demand for SparQ Drive Boosts Revenue by 180% - April 28, 1998 16:45 %SYQUEST SYQT %CALIFORNIA %COMPUTERS %ELECTRONICS %COMED %EARNINGS V%BW P%BW Jump to first matched term FREMONT, Calif.----April 28, 1998--SyQuest Technology Inc. (NASDAQ:SYQT), a leading manufacturer of removable cartridge hard drives, said today net revenue for the second fiscal quarter ended March 31, 1998 rose 180 percent, to $47.0 million, from $16.8 million in the same period last year. Separately, this represents a 47 percent sequential increase from revenue of $32.1 million in the first quarter of fiscal 1998. The Company reported a reduced operating loss for the current quarter of $29.9 million as compared to an operating loss of $32.6 million in the same period last year. The operating loss for the current quarter also improved as compared to the immediately preceding quarter ended December 31, 1998 of $36.2 million. SyQuest reported a net loss for the quarter of $31.7 million, or a net loss of $0.43 per share, compared to a net loss of $34.4 million, or a net loss of $1.31 per share, for the same period a year ago and a net loss of $39 million or a net loss of $0.57 per share, for the preceding quarter. The Company reported net revenue for the six months ended March 31, 1998 of $79.1 million which was an increase of approximately $14.0 million, or 21 percent, over the same period in the prior year. The net loss for the six months ended March 31, 1998 was approximately $70.7 million or a net loss of $1.00 per share as compared to a net loss of $47.1 million or a net loss of $2.30 per share in the same period last year. Edward Marinaro, SyQuest Chairman, said: "Our improved financial performance resulted from increased revenue and greater efficiencies in manufacturing which contributed to a lower negative gross margin. The sharp increase in net revenue resulted from the strong market acceptance of our new 1-gigabyte SparQ storage solution. Compared to the same period last year, the total number of removable drives shipped during the current quarter increased 297%. The number of cartridges shipped during the quarter increased 50% compared to the same period last year. Marinaro added, "We continued to improve manufacturing yields resulting in reduced manufacturing costs and we've made capital investments to expand our manufacturing capacity. We foresee continued volume increases over the next several quarters to meet anticipated customer demand for SparQ. Shipments of SyJet, the Company's 1.5-gigabyte high-performance professional storage solution, were strong during the current quarter." The Asian economic situation did not have a significant impact on the results of operations as the majority of the materials were purchased with US dollars, and sales within that geographic represented only 4% of revenue. SyQuest's financial condition during the March quarter included a cash position of $16.6 million. Also in the March quarter, the Company raised additional cash through the completion of its Series 7 convertible preferred stock offering for approximately $30.0 million and through the exercise of outstanding stock purchase warrants for approximately $17.2 million. At March 31, 1998 the Company had approximately 81.7 million common shares outstanding and approximately 51.4 million stock purchase warrants issued and outstanding. There would be approximately 164.3 million common shares outstanding if all stock purchase warrants and convertible preferred shares were exercised and converted as of April 15, 1998. About SyQuest Based in Fremont, Calif., SyQuest Technology, Inc. is the leader in removable cartridge hard drive storage technology. The company offers the highest capacity, best performing, most affordable, and easy to use removable hard drives and cartridges in the marketplace. SyQuest award winning products are ideal storage solutions for SOHO/professionals, families, students, Internet users and more. SyQuest (SYQT) is publicly traded on NASDAQ's National Market System. The company's web site is www.syquest.com. This news release contains forward-looking statements that involve risks and uncertainties, including competition in the marketplace for the company's products, and other risks detailed from time to time in the SEC reports filed by SyQuest including its most recent reports on Forms 8K, 10K and 10Q. NOTE TO EDITORS: SyQuest is a registered trademark and the SyQuest logo, SparQ, SyJet and Quest are trademarks of SyQuest Technology, Inc. All other brands or trade names are the property of their respective companies. Copyright (c)1998 SyQuest Technology, Inc. All rights reserved.