, which today saw its share price soar 23 percent prior to its
after-market earnings announcement, reported a jump in third-quarter revenues
that sliced away at losses.
The portable storage maker, which has been fighting to regain lost
market share, reported losses of $10.7 million, or 80 cents per share, for
the quarter, compared with a net loss of $41.3 million, or $3.61 per share, for the same quarter last year. In the preceding quarter, the company posted a loss of
Revenues for the third quarter ended June 30 were $31.7 million, compared
to $29.5 million in the same period a year ago. SyQuest generated just $16.8 million in the second quarter.
The company, which is fighting to regain market share lost to Iomega
(IOM), saw its shares close at 3-1/8, up 19/32 over Friday. The
company's shares reached as high as 3-9/32 during morning trading.
Volume of shares traded reached over 8 million, more than eight times
SyQuest's average trading volume.
Syquest attributed the improvements to shipments of its new SyJet portable drive during the quarter, and to a reduction in operating expenses.
The company also raised additional money through a $33 million private
stock offering in the quarter.
"They're making progress--they were essentially not in business last
quarter," said H.D. Brous analyst Howard Rosencrans in a recent interview.
"They're on the right track, they're making strides, their products have
gotten strong critical response, but it is premature to conclude they're
out of the woods."
SyQuest had cited slow sales of its older products and slower-than-expected
sales of SyJets as the reasons for last quarter's revenue decline.
"The improved gross profit was partially offset during the quarter by
manufacturing start-up costs as we continued to ramp SyJet production to
meet the product demand," Ed Marinaro, chairman of the board, said in a statement.