Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Iomega Thread without Iomega -- Ignore unavailable to you. Want to Upgrade?

To: David Colvin who wrote (9368)	4/23/1999 12:02:00 PM
From: Mel Boreham	Read Replies (2) \| Respond to of 10072

David and Michael, you may have already seen this, but I haven't seen any mention about yesterday's announcement that the Syquest deal had been completed. I brought this item over from TMF board. Interesting that they waited until after the 1st Qtr. numbers were announced to complete the deal. Remember that this was contingent on the purchase of Syquest's other overseas facilities in Malaysia. The one time restructuring charge may include several "unusual" items in one bundle in the upcoming 2nd Qtr. report. If this is done then there may well be a rather large negative drag on any monies from increased sales of the Zip 250 and Clik! systems. According to the gal that reported about attending the annual meeting over on the Yahoo thread, 1 million from the sale of the Ditto unit was applied to the 1st Qtr figures otherwise there would have been a negative figure for the past Qtr... The other payments for the sale will be spread out over the next 2 years if I remember correctly. So it appears that they did "need" to add the sale of the Ditto to their earnings in order to not be in the red for the 1st Qtr. Mel Repost follows: Subject: Syquest Purchase Complete Date: 4/22/99 5:28 PM Author: gregme Number: of 20900 Here's the link... quote.bloomberg.com SYQUEST TECHNOLOGY ANNOUNCES NAME CHANGE AND THE SALE OF SELECT Assets to Iomega Corporation Business Editors FREMONT, Calif.--(BUSINESS WIRE)--April 22, 1999--SyQuest Technology Inc. announced that the sale of substantially all its U.S. assets to Iomega Corporation for approximately $9.1 million has been completed. Included in the sale was all intellectual property, all U.S. fixed assets, and all U.S. inventory, raw materials and work in progress. The proceeds from the sale were used to pay SyQuest's secured lender, Greyrock Business Credit. As part of the sale, SyQuest has changed its name to SYQT, Inc. SYQT will retain all of its accounts receivable, will continue providing limited service and support (including warranty service), and offer limited sales of SyQuest branded products. Information regarding service, support, sales, repairs, warranty returns and product service operations can be found on SYQT's web site (http://www.SYQT.com). The Company anticipates adding additional customer service and technical support resources in the future. Notwithstanding the sale of assets and the collection of its accounts receivables, SYQT does not expect to have sufficient assets to satisfy the claims of all creditors. As a result, it appears that there will not be any distribution to SYQT's shareholders and that SYQT common stock therefore has no value. SYQT common stock had previously been delisted from the Nasdaq National Market on January 21, 1999. 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 SYQT, fka SyQuest Technology, Inc. including its most recent reports on Forms 8K, 1OK and 10Q. Note to Editors: SyQuest is a registered trademark and the SyQuest logo is a trademark of Iomega Corporation. All other brands or trade names are the property of their respective companies. SYQT is not an agent or otherwise an affiliate of Iomega Corporation.

To: David Colvin who wrote (9368)	4/23/1999 12:06:00 PM
From: John Solder	Read Replies (1) \| Respond to of 10072

This stock needs a kick in the ass. No volume, 1/8 here 1/16 there It's like watching paint dry.

To: David Colvin who wrote (9368)	4/23/1999 12:13:00 PM
From: Mel Boreham	Respond to of 10072

David, Michael and all, here is the post from Yahoo board via TMF board... Interesting observations! Overall, it looks like we could have a very good year if things work out as planned. Mel Repost follows: Subject: Re: Annual Meeting Date: 4/20/99 9:38 PM Author: LA340 Number: of 20900 This is Annette's convention report taken from Yahoo IOM: ShowMeTheMoney_Annette_ (39/F/Irvine, CA) <<<Shareholders Meeting Apr 20 1999 4:04PM EDT Just got back from the meeting. I wish that I had some real warm fuzzies but quite frankly I was very disappointed in the manner in which the meeting was conducted as well as what I could read between the lines. Let's get the bad out of the way first. All 3 initiatives were passed by a 91% or better margin. Granted, it would be difficult to overide Dave Dunn and cronies due to their large number of shares but I don't believe that the average shareholder realizes that our stock shares will be diluted when they issue additional shares. The Iomega gang acted like they were the cool dudes at a high school reunion. They made no effort to be personable. They could all use some lessons in personal relations. It's obvioius why they sold the Ditto line as it resulted in a $14.3 million dollar loss for 1998. The question I have is why'd they keep making them if they were losing that much money on them? For Q1'99, Jaz sales resulted in a $3 million dollar loss, Clik sales resulted in a $15 million dollar loss and Zip sales provided $51 million dollars in profit. On page 19 of the annual report, there was a printing error with regard to Mr Glore's stock options. His options are valued at $13 million not $3 million. Just a slight difference. Dan Strong's favorite phrase is "significant improvement". I got him to acknowledge that without the $1 million that they booked for the Ditto sale in Q1'99, they'd have been in the red for that quarter. I also got him to acknowledge that if Q2'99 is going to be in line with Q1'99 as they stated that with any special charges, it'll be difficult to keep that quarter in the black. It was good to see him squirm a little. Now the good stuff. The manufacturing supply constraints have been resolved and adequate inventory levels have been attained world wide. A gentleman behind me asked why Comp USA down the street didn't have any Clik drives if this was the case. They brushed that under the rug as quick as they could. The Agfa camera with the built in Clik drive will debut shortly and they indicated that other camera manufacturers were working with them but they couldn't say who they were at this point. Jodie made several references to Iomega entering the CDw-r and DVD market but wouldn't elaborate any. It did indicate that they see the potential in these markets. My opinion is that the second half of the year should be good if they can keep the store shelves stocked and they market effectively. It was noted that their advertising wasn't as good as it could be and they said that they'd review it. FWIW. This is obviously my opinion of what transpired and I readily admit that someone else might have viewed it differently. I've tried to be as objective as I can and hope that this is useful. Best of luck to you all. LA340