SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 3, 1997
SYQUEST TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
0-19674 94-2793941
(Commission File Number) (IRS Employer Identification No.)
47071 Bayside Parkway, Fremont, California 94538
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (510) 226-4000
Not Applicable
(Former name or former address, if changed since last report.)
<PAGE>
<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events
Registrant Announces Its Fiscal 1997 First Quarter Results
On February 3, 1997, Registrant announced a net loss of
$6,800,000, or $.86 per share, on net revenues of $48,300,000 for
the first quarter of fiscal 1997, which ended December 31, 1996.
Registrant's results for the first quarter of fiscal 1997 are also
described in the press release attached hereto as Exhibit 99.1 and
incorporated herein by this reference.
Item 7. Financial Statements and Exhibits
Exhibit No. Description
99.1 Registrant's Press Release, dated February 3,
1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
SYQUEST TECHNOLOGY, INC.
(Registrant)
Date: February 7, 1997 By /s/ Edwin L. Harper
Edwin L. Harper
President and Chief
Executive Officer
<PAGE>
<PAGE>
CONTACTS:
Richard Cline Henry Montgomery
Miller/Shandwick Technologies Chief Financial Officer
415/962-9550 SyQuest Technology, Inc.
510/226-4000
FOR IMMEDIATE RELEASE:
SYQUEST REPORTS FISCAL 1997 FIRST QUARTER RESULTS
Net Loss Sharply Reduced for Second Consecutive Quarter of
Improvement; Sequential Quarterly Revenues Again Increase Over
Previous Period
FREMONT, Calif., February 3, 1997 -- SyQuest Technology, Inc.
(NASDAQ:SYQT), a leading manufacturer of removable cartridge hard
drives, today reported a reduced loss of $6.8 million, or 86 cents
per share, on net revenues of $48.3 million for the first fiscal
quarter ended December 31, 1996. In the same period a year ago the
company had a net loss of $33.8 million, or $2.98 per share, on net
revenues of $78.7 million.
Compared with the fourth fiscal quarter of 1996, which ended
Sept. 30, 1996, SyQuest in the first fiscal quarter of 1997 reduced
its net loss by 35 percent and increased its net revenues by 8
percent. Gross profit margins were 23 percent of revenues,
slightly better than the previous quarter.
"Our first quarter results reflect solid improvements in the
business," said Chairman Ed Marinaro. "The company's new
management team continues to make positive changes throughout the
company. Although SyQuest faces a difficult rebuilding challenge,
we are pleased with our progress on our plan."
The computation of earnings per share for the first quarter
includes two adjustments increasing the loss attributable to common
shareholders and which aggregate $5.9 million. One adjustment of
$5.3 million is for the imbedded yield representing the discount on
the assumed potential conversion of the Cumulative Convertible
Preferred Stock, Series 1 and the 5% Cumulative Convertible
Preferred Stock, Series 2, both of which were issued during the
quarter. This one-time adjustment accounted for 36 cents of the
total loss per share. A comparable adjustment of $4.4 million, or
38 cents per share, relating to the 7% Cumulative Convertible
Preferred Stock, issued during the fourth quarter of fiscal 1996,
was used in the calculation of earnings per share for the fourth
quarter ended September 30, 1996. The second charge for the
current quarter aggregating $0.6 million is for dividends payable
on the company's preferred stock issues that require payment of
cumulative dividends.
<PAGE>
Marinaro said limited quantities of the new SyQuest SyJet 1.5
gigabyte removable cartridge hard drive were shipped in December,
and the company is now in an accelerated production ramp-up cycle.
"This leadership product has received numerous awards, including
New Media Magazine's 1997 Hyper Award and Desktop Engineering's
Readers' Choice Award, as well as favorable product reviews," he
said.
About SyQuest
SyQuest Technology, Inc. is headquartered in Fremont,
California, and maintains manufacturing plants in Fremont, Calif.,
and Penang, Malaysia, with additional facilities in Colorado,
California, Europe and Asia. The company offers removable cartridge
hard drives for Apple, Windows, MS-DOS, PC-DOS, UNIX, SGI 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 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.
###
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.
<PAGE>
SYQUEST TECHNOLOGY, INC.
CONSOLIDATED CONDENSED INCOME STATEMENT
(In thousands, except per share data)
(Unaudited)
Three Months Ended December 31, 1996 1995
Net Revenues $ 48,312 $ 78,667
Cost of Revenues 37,267 87,929
Gross Profit (loss) 11,045 (9,262)
Operating Expenses:
Selling, general and administrative 11,328 14,464
Research and development 5,100 7,160
Total operating expenses 16,428 21,624
(Loss) from operations (5,383) (30,886)
Interest income (expenses) (1,431) 85
(Loss) before income taxes (6,814) (30,801)
Provision for income taxes -- 3,000
Net (loss) $ (6,814) $(33,801)
(Loss) per share $ (0.86) $ (2.98)
Common and common equivalent shares
used in computing per share amounts 14,673 11,324
The computation of earnings per share for the quarter ending
December 31, 1996, includes two adjustments increasing the loss
attributable to common shareholders and which aggregate $6.0
million. A one-time adjustment of $5.3 million is for the
"imbedded yield" representing the discount on the assumed potential
conversion of the Cumulative Convertible Preferred Stock, Series 1
and the 5% Cumulative Preferred Stock, Series 2, both of which were
issued during the quarter ended December 31, 1996. The second
adjustment of $0.6 million is for dividends payable on the
company's preferred stock issues that require payment of cumulative
dividends.
<PAGE>
SYQUEST TECHNOLOGY, INC.
CONSOLIDATED CONDENSED INCOME STATEMENT
(In Thousands)
(Unaudited)
December 31
1996 1995
Current assets:
Cash and cash equivalents $ 14,259 $ 11,201
Accounts receivable, net 34,921 63,522
Inventories, net 22,264 36,018
Other current assets 3,135 12,726
Total current assets 74,579 123,467
Net plant, property, equipment
and leasehold improvements 26,476 31,280
Other assets 839 3,093
$101,894 $157,840
Current liabilities:
Bank borrowings $ 19,789 $ 6,013
Accounts payable 16,080 59,587
Accrued compensation and
other liabilities 20,448 33,856
Current portion of long-term
debt 18,573 --
Total current liabilities 74,890 99,456
Deferred income taxes, etc. 160 8,997
Long-term debt 17,102 --
Stockholders' equity:
Preferred stock 5 --
Common stock 16 13
Additional paid in capital 149,500 79,489
Treasury stock (12,855) (12,855)
Retained deficit (126,924) (17,260)
Total stockholders' equity 9,742 49,387
$101,894 $157,840
