KE on CNBC:
I watched the entire interview. I thought KE did a great job answering
all the tough questions put forth. I don't remember the exact questions
and answers, but I remember the key points:
* While answering questions, KE managed to do 3-4 commercial for
the Zip, Jaz drives/disks and Ditto. He brought the drives/disks and
held them up to the camera. A true saleman!
* Debt issues was brought up, KE said current cash will last thru at least
2Q. What IOMG will do to finance growth will depend on revenue/earning
growth and other considerations. (He didn't seem to think this was a
big deal for IOMG.)
* CNBC pounded on margin issues, said that all current (fixed disk) storage
suppliers have low margin, and share prices are at discount. What
makes IOMG different?
KE said high margin will come thru disk sales, not drives.
(The analyst/CNBC folks apparently still don't know the difference
betwen a harddrive and Zip and Jaz.)
* CNBC asked that according to some analysts, IOMG must be able to
sell 400 mils Zip disks (or drives) to justify current valuation, is that
achievable? KE said that 400 mils units is doable. (I thought for a moment
that KE was happy to hear the number 400 mils, perhaps low?)
* CNBC asked about Compag and the LS-120. KE replied that he does
not consider Compag a competitor. Said that he does not think Compag
really cares what goes in their PCs. KE said IOMG IS CURRENTLY
TALKING TO COMPAQ ABOUT ZIP.
From my memory, so probably not 100% accurate, but should be
very close.
At one point, the CNBC interviewer refers to himself and other interviewers
as "Techno-geeks". What irony! A real insult to Techies and geeks
around the world. Although, I really appreciated their tough (but totally
biased on potential nagatives of courses) questions. I am a bigger
believer in IOMG 's future now than ever before. |
