SyQuest Technology Inc, Fremont, California, is looking for wealthy friends after reporting huge losses of $51.1m on sales of $47.4m, a striking contrast from its $3.7m profit on revenues of $76.5m for the same period last year. The disk drive manufacturer says it’s hired Needham & Co investment banking firm to help it find potential strategic partners, and has undergone a management reorganization. It’s down- sizing its Malaysian manufacturing operation, refocusing its product line and consulting with its banks and suppliers – and predicts it will remain in the red this quarter. A SyQuest spokesperson refused to comment on why the firm is struggling, but part of the blame can be attributed to rival Iomega Corp’s successful Zip drive. SyQuest has been plagued by manufacturing and quality control problems.
