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SyQuest stock declines

SyQuest Technology's stock drops despite an improved fourth-quarter financial performance.

SyQuest Technology (SYQT) today saw its stock drop despite posting an improved fourth-quarter financial performance.

Shares of the troubled maker of removable cartridge hard drives closed today at 3-11/16 a share, down a quarter-point from yesterday. The company released its quarterly results after yesterday's market close.

SyQuest reported a net loss of $10.4 million, or $1.29 per share for the quarter ending September 30, compared with a loss of $19.1 million, or $1.69 a share, a year ago.

Revenues, however, fell by 50 percent to $44.8 million for the quarter, down from $88.4 million last year.

Despite the drop in revenues, the company made some improvements over the previous quarter. SyQuest increased its revenues by 52 percent and cut its net loss by 75 percent.

"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," Chairman Ed Marinaro said in a statement.

SyQuest also noted that it was able to maintain its listing on the Nasdaq market after an infusion of funds since it completed its $71.5 million in equity investments. The company in September had earlier announced that it was in jeopardy of losing its listing because of declining finances.

The company reported a net loss of $136.7 million, or $12.38 a share, for the fiscal year, compared with a loss of $11.8 million a year ago. Revenues for the year reached $200.4 million, down from $299.5 million the previous year.

In recent years, the company has lost a substantial portion of its marketshare to Iomega (IOMG).

But the rival has also seen its stock price tumble since loftier days just last year and is planning to cut up to 700 jobs as it shifts production to its site in Malaysia. Iomega will take a one-time charge of $10 million in the fourth quarter. (See related story)

SyQuest, meanwhile, said it has started initial shipments of its SyJet 1.5GB removable cartridge hard drive and expects to roll out full-volume shipments in January.