Miniscribe Corporation Essay

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Miniscribe Corporation An Executive Summary Miniscribe is a computer disk drive manufacturing company founded in 1981 by Terry Johnson. It started from the basement of Mr. Johnson’s home in Longmont, Colorado. The company was considered as one of the greatest disk drive manufacturers in the 1980s. With the rapid growth in the IT industry, their product was selling like hotcakes in the market, allowing the company to increase its sales from $81,000 in 1981 to $77 million in 1983. It became a publicly traded company in 1983 and was deemed as one of the highly traded and recommended stock by Wall Street. Shortly after becoming public, Miniscribe began to experience financial losses. There were speculations that the company was experiencing difficulties in cash flow and inventories. The company hired QT Wiles, a well-known turnaround specialist to serve as Miniscribe’s Chief Executive Officer and chairman of the board, thus, his main task was to help correct the Company’s financial position. It was during his leadership that Miniscribe introduced several new product lines in the market which was generally accepted and led to high sales record for Miniscribe. Still, talks around the industry claims that cash flow and inventories were still a problem. To verify this rumour, an investigation was conducted to know its real financial disposition. Thorough analysis of the company’s profitability and liquidity using the unaudited financial statement in the year 1998 was made. The company’s statement of cash flow was examined to determine if the company has still enough cash to continue its operation. Identification of the firm’s strengths, weakness, opportunities and threats together with its financial ratios such as the liquidity, efficiency and profitability was computed and analysed. Moreover, MiniScribe’s stock price highs and lows were also evaluated. A

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