Financially-troubled storage company SyQuest Technology Inc is looking to boost sales through rebates on its SparQ 1.0 gigabyte and SyJet 1.5 gigabyte removable hard drives and cartridges. SyQuest says the promotion will be supported with national advertising and in-store displays in major markets nationwide. The advertising blitz will include newspaper, TV, radio and web site promotions. SparQ customers can now buy the drive and four gigabytes of cartridge space for $268, which the company points out is significantly less than similar offerings from Iomega Corp. A $100 rebate is available with the combined purchase of a SyJet drive and cartridge three-pack. SyQuest which has lost money 11 quarters in a row and seen its share price eroded by about 75% since October (CI No 3,425), is pegging its hopes on the rise in low-cost PC sales. It figures the limited storage capacity of these systems will lead many to purchase additional devices. It has already made plans to increase production based on that assumption, a plan which could seriously backfire if sales don’t improve drastically. The advertising push could also be a risky move, as Iomega shareholders responded to that company’s decision to spend $100m on advertising while posting poor results by filing a class-action lawsuit.
