Exhibit 99


                  CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

         Statements   that   are  not   statements   of   historical   fact  are
"forward-looking statements." Forward-looking statements made by or on behalf of
the Company represent the Company's  reasonable  judgement on the future and are
based on a number  of  assumptions  and are  subject  to a number  of risks  and
uncertainties.  Actual results may differ materially from those projected in the
forward-looking  statements.  Such risks and  uncertainties  include among other
things:

Risks of  Expansion.  The Company  believes that in order to achieve sales which
would enable it to be profitable in the long-term and to compete  effectively in
its  chosen  marketplace,  it will have to  intensify  its  sales and  marketing
efforts in the near term, which will involve  significant  expense and the usual
strains on management  caused by rapid  expansion.  In  particular,  in order to
successfully  expand  international sales in fiscal 1997 and subsequent periods,
the  Company  must  continue  to  expand  foreign  operations,  hire  additional
personnel and recruit additional international  distributors and resellers. This
will require significant  management attention and financial resources and could
materially  adversely  affect the  Company's  business,  operating  results  and
financial condition.  The likelihood of the Company's success must be considered
in  light  of  the  problems,  expenses,   difficulties  and  delays  frequently
encountered  in  connection  with  the  rapid  expansion  of  a  high-technology
business. These include, but are not limited to, competition, the need to expand
customer support capabilities and marketing  expertise,  and setbacks in product
development and market acceptance.

Foreign Sales.  Approximately,  53% , 61% and 53% of SCC's  revenues  during its
fiscal years ended December 31, 1994, 1995 and 1996, respectively,  were derived
from sales made outside of the United States.  SCC's profitability and financial
condition are materially  dependent on the success of its foreign sales efforts.
Foreign  sales are  subject  to certain  inherent  risks,  including  unexpected
changes in  regulatory  and other  legal  requirements,  tariffs and other trade
barriers,   possibility  of  increased  difficulty  in  collection  of  accounts
receivable and potentially adverse tax consequences.  Currency translation gains
or losses on conversion to United States dollars from foreign sales  denominated
in foreign  currencies may also  contribute to  fluctuations in SCC's results of
operations.  There  can be no  assurance  that  these  factors  will not have an
adverse  impact  on SCC's  future  foreign  sales  and,  consequently,  on SCC's
operating  results.  SCC does not  presently  engage in the  hedging  of foreign
currencies or similar activities.





         Dependency on Developing  New Products and  Technological  Change.  The
market for storage products is  characterized  by rapidly  changing  technology,
product obsolescence and evolving industry standards. The success of the Company
will depend upon its ability to enhance  existing  products and to introduce new
products and features in a timely manner to meet changing customer requirements.
There can be no assurance  that the Company will be successful  in  identifying,
developing,  manufacturing and marketing new products, or enhancing its existing
products.  There can be no  assurance  that the Company  will be  successful  in
developing and marketing new products that respond to  technological  changes or
evolving industry standards,  that the Company will not experience  difficulties
that  could  delay or  prevent  the  successful  development,  introduction  and
marketing of new  products,  or that its new products will  adequately  meet the
requirements of the marketplace and achieve market acceptance. If the Company is
unable,  for  technological  or other  reasons,  to develop  and  introduce  new
products  in a timely  manner in  response  to  changing  market  conditions  or
customer  requirements,  the Company's  business  will be  materially  adversely
affected.  In addition,  there can be no assurance that products or technologies
developed  by others  will not render the  Company's  products  or  technologies
noncompetitive or obsolete.

         Products  like those  offered by the  Company  may  contain  undetected
software  errors or  failures  when  first  introduced  or as new  versions  are
released.  There can be no assurance that, despite testing by the Company and by
current and potential customers,  errors will not be found in new products after
commencement  of commercial  shipments,  resulting in loss of or delay in market
acceptance,  which  could  have a material  adverse  effect  upon the  Company's
business, operating results and financial condition.


         Competition and Pricing.  The  information  storage market is extremely
competitive.  Companies  such as Data  General  Corporation,  Digital  Equipment
Corporation,   EMC   Corporation,   IBM   Corporation,,   Hewlett-Packard,   NCR
Corporation,  Storage  Technology,  Sun  Microsystems,  and more  than 100 other
public and private  companies provide disk arrays for a wide variety of computer
systems,  workstations and PCs.  Although SCC is currently  unaware of any other
vendor  offering an  asynchronous  transfer  RAID 7 disk array,  there can be no
assurance that the Company will be able to compete successfully against existing
companies or future entrants to the marketplace. While the Company believes that
the price-performance characteristics of its products are currently competitive,
increased  competition  is likely to result in price  reductions,  reduced gross
margin and loss of market share, any of which could materially  adversely affect
the Company's business,  operating results and financial condition.  Many of the
Company's  current  and  potential   competitors  have   significantly   greater
financial,  technical,  marketing  and other  resources  than the Company.  As a
result, they may be able to respond more quickly to new or emerging technologies
and changes in customer  requirements,  or to devote  greater  resources  to the
development,  promotion, sale and support of their products than the company. In
addition,  current and potential  competitors  have established or may establish
cooperative  relationships among themselves or with third parties.  Accordingly,
it is possible that new  competitors or alliances  among  competitors may emerge
and rapidly acquire  significant  market share.  Furthermore,  reductions in the
price of competitive  products,  changes in discount levels or  announcements by
the Company's  competitors,  or new generations of high-performance  systems may
adversely affect sales of the Company's products.

         Dependence on Proprietary  Technology.  The Company's  success  depends
significantly upon its proprietary technology. The Company currently relies on a
combination   of  patent,   copyright  and  trademark   laws,   trade   secrets,
confidentiality procedures and contractual provisions to protect its proprietary
rights. The Company currently has been issued certain patents and has other U.S.
patent  applications  pending and numerous  corresponding  international  patent
applications  pending.  There can be no assurance that the pending  applications
will be approved, or that if issued, such patents, as well as patents previously
issued,  will not be challenged,  and if such challenges are brought,  that such
patents will not be invalidated. There can be no assurance that the Company will
develop  proprietary  products or  technologies  that are  patentable,  that any
issued patent will provide the Company with any  competitive  advantages or will
not be challenged by third parties,  or that the patents of others will not have
a material adverse effect on the Company's  ability to do business.  Despite the
Company's efforts to protect its proprietary  rights,  unauthorized  parties may
attempt  to  copy  aspects  of the  Company's  products  or to  obtain  and  use
information  that the Company regards as proprietary.  In addition,  the laws of
some foreign countries do not protect  proprietary  rights to as great an extent
as do the  laws  of the  United  States.  There  can be no  assurance  that  the
Company's  means of protecting its  proprietary  rights will be adequate or that
the Company's  competitors will not  independently  develop similar  technology,
duplicate the Company's  products or design around patents issued to the Company
or other intellectual property rights of the Company.

         Dependence on High Quality  Components.  Certain components used in the
Company's  products  are  currently  available  from  only a  limited  number of
suppliers.  The Company's  reliance on its  suppliers  involves  several  risks,
including  a  potential  inability  to obtain  an  adequate  supply of  required
components, price increases, timely delivery and component quality. This risk is
particularly  significant  with respect to  suppliers of disk drives  because in
order to meet  product  performance  requirements,  the Company must obtain disk
drives  with high  quality  and  capacity.  In  addition,  there is  currently a
significant  market demand for disk drives and semiconductor  memory components,
which could result in component  shortages,  selective  supply  allocations  and
increased prices of such components. Although to date, the Company has been able
to  purchase  its  requirements  of such  components  in a timely and  effective
manner,  there is no assurance  that the Company will be able to obtain its full
requirements of such components in the future, or that prices of such components
will  not  increase.   While  the  Company   believes  that  there  are  several
alternatives and other suppliers of its components,  the Company's  inability to
obtain  sufficient  limited  source  components  as  required,   or  to  develop
alternative sources if and as required in the future,  could result in delays or
reductions in product  shipments  which could have a material  adverse effect on
the Company's operations.

          Dependence on Key Personnel.  The Company's  future  performance  also
depends in significant part upon the continued  service of its key technical and
senior  management  personnel.  The  loss  of  services  of one or  more  of the
Company's  officers or other key employees could have a material  adverse effect
on the  Company's  business,  operating  results and  financial  condition.  The
Company's  future success also depends on its continuing  ability to attract and
retain highly qualified technical and management personnel. Competition for such
personnel is intense,  and there can be no assurance that the Company can retain
its key technical and management employees or that it can attract, assimilate or
retain other highly qualified technical and management personnel in the future.