SyQuest reports fiscal 1996 fourth quarter results; net loss sharply reduced; sequential quarterly revenues increase for first time in over a year.FREMONT, Calif.--(BUSINESS WIRE)--Dec. 30, 1996--SyQuest Technology 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 ), a leading manufacturer of 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 drives, today reported a reduced net loss of $10.4 million, or $1.29 per share, on net revenues of $44.8 million for the fiscal fourth quarter ended Sept. 30, 1996. In the same period a year ago the company had a net loss of $19.1 million, or $1.69 per share, on net revenues of $88.4 million. Compared with the fiscal third quarter of 1996, SyQuest in the fourth quarter reduced its net loss by 75 percent and increased its net revenue by 52 percent. Gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. improved to 22 percent of revenues, compared with negative gross margins in the preceding period. For all of fiscal year 1996, SyQuest posted a net loss of $136.7 million, or $12.38 per share, on revenues of $200.4 million, compared with a net loss of $11.8 million, or $1.07 per share, on revenues of $299.5 million in fiscal 1995. "Our fourth quarter results signal renewed momentum for SyQuest, marking the first time in over a year that the company has achieved sequential quarterly revenue growth," said Chairman Ed Marinaro Ed Marinaro (born March 31, 1950 in New York, New York) is an American actor and former football player. Ed played his high school football in New Milford, New Jersey for the New Milford High School Knights. . "Since early summer, under new management, we have taken major steps to move SyQuest toward profitability. This quarter is a benchmark in our turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. strategy." Marinaro said that the company has expanded its manufacturing capacity, without additional factory hiring or increased plant facilities, through improvements in operating efficiencies and yields. He also noted that since May SyQuest has significantly restored its balance sheet, completing $71.5 million worth of equity investments and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). $38.5 million of debt into long- and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. notes. On Nov. 7, 1996, the company announced that it had exceeded the financial requirements of NASDAQ and was therefore allowed to maintain its National Market listing on the stock exchange. SyQuest to date has shipped a total of more than 3 million removable cartridge hard drives and 15 million cartridges
SyQuest said that is has also begun initial delivery to customers of its innovative SyJet 1.5 GB removable cartridge hard drive and expects volume shipments to commence in January 1997, to fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. a large backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of orders from OEMs, resellers and retailers. About SyQuest 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. is headquartered in Fremont, and maintains manufacturing plants in Fremont and Penang, Malaysia, with additional facilities in Colorado, California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Europe and Asia. The company offers removable cartridge hard drives for Apple, Windows, MS-DOS MS-DOS in full Microsoft Disk Operating System Operating system for personal computers. MS-DOS was based on DOS, developed in 1980 by Seattle Computer Products. Microsoft Corp. bought the rights to DOS in 1981, and released MS-DOS with IBM's PC that year. , PC-DOS The DOS operating system originally developed by Microsoft and supplied by IBM on its PCs before Windows 95 became the norm. Up until DOS 6, PC-DOS was almost identical to Microsoft's MS-DOS for non-IBM PCs, and both versions are called "DOS." See "IBM's DOS 6" under DOS 6. , UNIX UNIX Operating system for digital computers, developed by Ken Thompson of Bell Laboratories in 1969. It was initially designed for a single user (the name was a pun on the earlier operating system Multics). , SGI (SGI, Sunnyvale, CA, www.sgi.com) A manufacturer of workstations and servers, founded in 1982 by Jim Clark. The company was founded as Silicon Graphics, Inc., but changed to its acronym in 1999. and Sun OS platforms. SyQuest (SYQT) is publicly traded on NASDAQ's National Market System. See SyQuest on the World Wide Web at 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 reports filed by SyQuest with the SEC, including the reports on Forms 10-Q and 10-K. -0- NOTE TO EDITORS: SyQuest and the SyQuest logo are registered trademarks of SyQuest Technology Inc. All other brands or tradenames are the property of their respective companies. -0-
SYQUEST TECHNOLOGY, INC.
CONSOLIDATED CONDENSED INCOME STATEMENT
(In thousands, except per share data)
Three months ended Twelve months ended
September 30, September 30,
1996 1995 1996 1995
(Unaudited) (Audited)
Net revenues $ 44,836 $ 88,375 $ 200,407 $299,544
Cost of revenues 34,770 93,142 248,693 248,497
Gross Profit (loss) 10,066 (4,767) (48,286) 51,047
Operating Expenses:
Selling, general and
administrative 12,815 14,072 51,743 44,264
Research and development 5,468 6,408 25,920 23,892
Restructuring (733) -- 4,727 --
Total operating expenses 17,550 20,480 82,390 68,156
Income (loss) from
operations (7,484) (25,247) (130,676) (17,109)
Other income (expense) (2,650) (86) (1,938) 468
Interest income (expense) (294) 195 (1,037) 1,134
Income (loss) before income
taxes (10,428) (25,138) (133,651) (15,507)
Provision (benefit) for
income taxes -- (6,032) 3,000 (3,721)
Net income $(10,428) $(19,106) $(136,651) $(11,786)
Income (loss) per share $ (1.29) $ (1.69) $ (12.38) $ (1.07)
Common and common equivalent
shares used in computing
per share amounts 11,497 11,063 11,497 11,063
The computations of earnings per share for the quarter and for the
year, ending September 30, 1996, include charges of $4,599 and
$5,733, respectively, associated with the assured yield for the
discount from fair market value related to conversion of the
Company's 7% Cumulative Convertible Preferred Stock. There are no
such charges included in the September 30, 1995 earnings per share
calculations.
SYQUEST TECHNOLOGY, INC.
CONSOLIDATED CONDENSED BALANCE SHEET
(In thousands)
(Audited)
September 30,
1996 1995
Current assets:
Cash, cash equivalents and short-term
investments $ 3,670 $ 29,648
Accounts receivable, net 30,341 55,653
Inventories, net 10,538 34,213
Prepaid expenses and deferred income taxes 2,471 15,320
Total current assets 47,020 134,834
Net plant, property and equipment 27,180 26,720
Other assets 981 3,130
$ 75,181 $164,684
Current liabilities:
Accounts payable $ 23,917 $ 41,213
Bank borrowings 19,629 --
Provision for losses on purchase commitments -- 10,510
Accrued compensation and other liabilities 18,671 20,416
Income taxes payable 1,966 355
Current portion of long-term debt $ 20,188 $ --
Total current liabilities 84,371 72,494
Deferred income taxes -- 8,726
Long-term debt 20,971 --
Other long-term liabilities 192 276
Stockholder's equity:
Preferred stock 18 --
Common stock 14 13
Additional paid-in capital 102,580 79,489
Treasury stock (12,855) (12,855)
Retained earnings (deficit) (120,110) 16,541
Total stockholder's equity (deficit) (30,353) 83,188
$75,181 $164,684
CONTACT: SyQuest Technology Inc. Henry Montgomery, 510/226-4000 or Miller/Shandwick Technologies Richard Cline cline, in biology, any gradual change in a particular characteristic of a population of organisms from one end of the geographical range of the population to the other. , 415/962-9550 rcline@miller.shandwick.com |
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