Storage company SyQuest Technology Inc has issued a statement addressing concerns over the recent declines in the company’s share price. SyQuest shares have plunged roughly 75% since October’s 52-week high of $6.0625 and are now trading at around $1.50. Chairman Ed Marinaro insists that no corporate changes have precipitated the sell-off, but that it is due to general concerns over the market for storage products. Marinaro says the company’s turnaround is still on target and centers around its SparQ 1.0Gb and SyJet 1.5Gb removable cartridge hard drives. The Fremont, California-based company has lost money for its last 11 quarters in a row, including a recently-reported second-quarter loss of $31.5m on revenue of $47m (CI No 3,399). SyQuest says it has quadrupled the number of retail distribution outlets, which has effected stronger product sell-through. It also claims to have recently signed an OEM agreement and shipped product to one of the top three personal computer manufacturers, and says an announcement about the deal is imminent. The company is pegging its hopes to the sub-$1,000 PC market, assuming that buyers will realize the limited storage capacity of their low-priced PCs, thus expanding the market for products such as the SparQ drive. SyQuest is already acting on that assumption by increasing production capacity to 500,000 drives in the quarter ending in December.
