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

To: Gary Wisdom who wrote (6274)	4/29/1998 2:21:00 AM
From: Dale Stempson	Respond to of 7685

CC Information (#1) SALES MIX Legacy Products 5% $ 2 Million SyJet/EZFlyer Products 36% $17 Million SparQ Products 59% $28 Million GEOGRAPHIC MIX U.S. 82% Europe 14% Asia 4% DSO = 62 Days Inventory Turns = 5 Regards - Dale

To: Gary Wisdom who wrote (6274)	4/29/1998 2:34:00 AM
From: Dale Stempson	Respond to of 7685

CC Information (#2) Production has increased quite a bit Backlog has increased significantly GM improvement mostly from increased volume, higher yields and material cost reductions Lower operating expenses from last quarter due to less advertising and promotion Higher operating expenses from last year due to higher advertising, sales expense and legal fees Sales expense is increasing in Europe Regards - Dale

To: Gary Wisdom who wrote (6274)	4/29/1998 3:14:00 AM
From: Dale Stempson	Respond to of 7685

CC Information (#3) Demand is soaring for SparQ Better integration of different departments Operations and sales are working well together Hit internal quarter targets exactly for revenues Gary Jones doing a good job Expect increase in demand and sales New retail distribution partners SyQuest products now available in over 2400 more locations, 3 times more than a couple weeks ago Very little revenue from these outlets in 3/31 quarter Competitors had decreased demand for their product while our experience was opposite Demand is outpacing manufacturing growth Lower channel inventories than our objective Still seeing only a small portion of real SparQ demand Build capacity increased 2x for drives and 3x for carts 500K build plan for December quarter SyJet strong even with SparQ out there Improving yields and simplified manufacturing Continued to ship Quest evaluation units Overall OEM business progressed well in quarter, significant announcements to come in the quarter Website hits increased 70x Regards - Dale

To: Gary Wisdom who wrote (6274)	4/29/1998 3:44:00 AM
From: Dale Stempson	Respond to of 7685

CC Information (#4) Legacy products not desired as much Trimming R&D slightly If we hit objectives, we've seen the last of negative GMs G&A influenced by legal services Will continue to use cash over next several quarters More investment in Penang, more on SparQ Legend joint venture discussions are ongoing We don't believe we'll need to drop prices soon Expect a very significant increase in unit production this quarter, but the following quarter will be more moderate due to Summer Last quarter SyJet cart yields were terrible Shipped less of a cart mix than planned Will continue to offer 230s for a long time into the future We will make a positive GM on drives Burnt $40 million in cash Greatest revenues occurred during last month of quarter This quarter still in a steep ramp $4 to $5 million this quarter for servo writers Cash in prior quarter used for other issues, now focused on SparQ Regards - Dale

To: Gary Wisdom who wrote (6274)	4/29/1998 3:57:00 AM
From: Dale Stempson	Read Replies (4) \| Respond to of 7685

CC Information (#5) When asked about material cost reductions and where that will kick in, the response was that they were not comfortable talking about future gross margins. They still have scrap and rework to improve on but will not disclose any level of detail. EZFlyer 230s will be offered for a long time into the future but the drive is not profitable at $149. When asked about their tie-ratio they did not know that demand level or their tie-ratio although the attach rate is considered to be very important and the mix is hurting gross margins. When asked about GM and OP margins if their sales were to reach $100 million, they thought it would be best not to answer. Compared to the fixed drive industry, SyQuest margins will be impacted by higher sales and marketing expenses. When asked about backlog, they were not prepared to say what it is. Regards - Dale