SyQuest Technology Restructures Business as Next Step in Turn-Around.FREMONT, Calif.--(BUSINESS WIRE)--Aug. 6, 1998-- Market Shifts Lead Company to Redefine and Streamline Operations; Includes Workforce Cuts and Cessation of Fremont Production In a continuing effort to effect its turnaround strategy, SyQuest Technology SyQuest Technology, Inc., now known as SYQT, Inc., was an early entrant into the removable hard disk market for personal computers. The company was started in 1982 by Syed Iftikar who named it partially after himself in a derivation of "Sy's Quest". Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :SYQT SYQT System Qualification Testing ), the world leader in removable cartridge removable cartridge n. A hard disk that has a self-contained casing, can be removed from the drive, and has greater storage capacity than floppy disks. hard drive technology, today executed a restructuring and streamlining of operations designed to improve the company's financial performance. The firm also said that its revenues for the third quarter, ended June 30, 1998, will be slightly below, and operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. slightly higher, than the preceding quarter. The company expects revenues to decline further in the quarter ended September 30, 1998 and will post charges related to the restructuring. However, the company anticipates revenues to show seasonal strength in the December 31, 1998 quarter. SyQuest said it has taken essential steps to bring costs into alignment with demand, due to market conditions that have affected the PC and data storage industries. The restructuring includes ending all Fremont manufacturing; a worldwide workforce reduction of approximately 950 people; a scaling-back of administrative, sales, marketing and research expenditures, and other cost-cutting moves in its Penang manufacturing facility. "We regret the impact that these actions are having on individual employees and recognize the contribution they have made to the business," said Ed Harper Ed Harper (born April 9, 1931 in Toronto, Ontario) is a former Canadian politician. He represented the electoral district of Simcoe Centre in the Canadian House of Commons from 1993 until 1997. , SyQuest president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . The company said it has made tangible progress in cost reduction and production yield improvements during the past year. That progress has enabled the current restructuring by allowing SyQuest to maintain its focus on the SparQ 1.0 GB removable cartridge hard drive, while eliminating duplicate manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. and leveraging the strengths of a streamlined organization. The company said its restructuring will reduce its expenses to less than half their previous level and thus significantly improve financial performance. Retail demand for the SparQ drive remains high based on sell-through reports. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. data received from PC Data, SyQuest has reached 50% retail market share within its product category. About SyQuest Technology Based in Silicon Valley, SyQuest Technology Inc. is the leader in removable cartridge hard drive storage technology. The company offers the best performing, most affordable high capacity removable hard drives and cartridges in the marketplace. SyQuest's easy-to-use, award-winning products are ideal storage solutions for SOHO/professionals, families, students and Internet users. The company's Web site is http://www.syquest.com. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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. (R) SyQuest is a registered trademark and SparQ and the SyQuest logo are trademarks of SyQuest Technology, Inc. All other brands or trade names are the property of their respective companies.
CONTACT: SyQuest Technology
Shannon Burns, 510/226-4158
investor.relations@syquest.com
or
Miller/Shandwick Technologies
Michael Celiceo, 650/596-5820
mceliceo@miller.shandwick.com
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