Thursday July 18 4:18 PM EDT
Iomega Second Quarter Revenues Rise to $283.6 Million Taking Six
Month 1996 Revenues to Over Half A Billion Dollars
ROY, Utah, July 18 /PRNewswire/ -- Iomega Corporation (Nasdaq: IOMG) today reported revenues of $283.6 million for the
second quarter of 1996 versus 1995 second quarter revenues of $52.6 million and net income of $14.1 million, or $0.11 per
share, for the second quarter of 1996 versus a loss of $1.9 million, or ($0.02) per share, for the second quarter of 1995.
For the first six months of 1996, revenues totaled $505.6 million versus $92.7 million for the first six months of 1995. Net
income for the first six months of 1996 totaled $24.2 million, or $0.19 per share, versus a loss of $3.4 million, or ($0.03) per
share, for the same period in 1995.
Gross margins for the second quarter of 1996 totaled $76.2 million, or 27% of revenue, versus $11.7 million, or 22% of
revenue in the same period of 1995.
Operating expenses were 18% of revenue in the second quarter of 1996, a reduction from 27% in the second quarter of 1995.
The Company's balance sheet at June 30, 1996 reflected cash and cash equivalents of $161 million, short-term notes payable of
$31 million and long-term debt of $52 million. The cash and cash equivalents reflect the balance of the proceeds of the equity
offering completed in June 1996, less the paydown of short-term bank debt.
Earlier today, Iomega announced that it has entered into an agreement to purchase a hard-drive manufacturing facility in
Penang, Malaysia from Quantum Corporation. The purchase price of approximately $28 million will be financed over a three
year period.
"The continued growth in revenue and net income is driven by the success of our new products, Zip, Jaz and Ditto, which
totaled $275 million, or 97% of second quarter 1996 revenues and for the first six months of 1996 totaled $488 million again
97% of revenues," Kim Edwards, president and chief executive officer stated. Mr. Edwards went on to say that, "Since our
new products have created essentially a new business, comparisons with last year's revenues and earnings are relatively
meaningless. A more meaningful comparison is second quarter results versus first quarter 1996 results. Our revenues of
$283.6 million in the second quarter contrasted with revenues of $222.0 million in the first quarter, or a quarter-to-quarter
increase of 28%. Similarly, our earnings of $14.1 million for the second quarter contrasted with earnings of $10.1 million in
the first quarter, or an increase of 40%." He added, "The successful public offering, completed in the second quarter of 1996,
strengthened our balance sheet, and positioned us with the resources for financing future growth."
Iomega Corporation provides personal computer storage, solutions that help people manage their computer stuff -- anywhere.
These solutions include: Zip drives and disks; Jaz one-gigabyte drives and disks; Ditto tape backup drives and tape cartridges;
and the Bernoulli line of removable drives and disks. Used in homes, business, government and education, and by creative
professionals, Iomega storage solutions are available through computer retail stores, resellers and major distributors. The
Company may be reached at 800-MY-STUFF (800-697-8833) or 801-778-1000.
Iomega and Bernoulli are registered trademarks of, and Zip, Ditto, Jaz and the Iomega logo are trademarks of, Iomega
Corporation. All other company and product names are marks of their respective companies.
IOMEGA CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
For the Three Months Ended
June 30, March 31, June 30, July 2,
1996 1996 1996 1995
(Unaudited) (Unaudited)
SALES $283,638 $221,988 $283,638 $52,594
COST OF SALES 207,443 162,088 207,443 40,907
Gross margin 76,195 59,900 76,195 11,687
OPERATING EXPENSES:
Selling, general
and
administrative 39,126 33,156 39,126 10,162
Research and
development 11,542 6,991 11,542 3,976
Total operating
expenses 50,668 40,147 50,668 14,138
OPERATING INCOME
(LOSS) 25,527 19,753 25,527 (2,451)
Interest and
other income
and expense,
net (2,239) (3,161) (2,239) (55)
INCOME (LOSS) BEFORE
INCOME TAXES 23,288 16,592 23,288 (2,506)
BENEFIT (PROVISION)
FOR INCOME TAXES (9,206) (6,471) (9,206) 559
NET INCOME (LOSS) $14,082 $10,121 $14,082 ($1,947)
NET INCOME (LOSS)
PER COMMON SHARE $0.11 $0.08* $0.11 ($0.02)*
WEIGHTED AVERAGE
SHARES
OUTSTANDING 132,405 128,838* 132,405 114,036*
For the Six Months Ended
June 30, July 2,
1996 1995
(Unaudited)
SALES $505,626 $92,706
COST OF SALES 369,531 69,302
Gross margin 136,095 23,404
OPERATING EXPENSES:
Selling, general and
administrative 72,282 19,511
Research and development 18,533 8,102
Total operating expenses 90,815 27,613
OPERATING INCOME (LOSS) 45,280 (4,209)
Interest and other
income and expense, net (5,400) (75)
INCOME (LOSS)
BEFORE INCOME
TAXES 39,880 (4,284)
BENEFIT (PROVISION)
FOR INCOME TAXES (15,677) 839
NET INCOME (LOSS) $24,203 ($3,445)
NET INCOME (LOSS)
PER COMMON SHARE $0.19 ($0.03)*
WEIGHTED AVERAGE
SHARES OUTSTANDING 130,419 113,316*
* The weighted average shares and EPS have been restated for the January 1996 3 for 1 and/or the May 1996 2 for 1 Stock
Splits
June 30, December 31,
1996 1995
(Unaudited)
ASSETS
Cash and cash
equivalents $160,678 $1,023
Trade receivables, net 180,094 105,955
Inventories 146,173 98,703
Other current assets 38,092 6,451
Total current assets 525,037 212,132
Property and
equipment, net 85,183 53,370
Other assets 4,288 725
$614,508 $266,227
LIABILITIES AND STOCKHOLDERS' EQUITY:
Notes payable $30,989 $47,640
Current lease
obligations 2,721 782
Accounts payable 159,341 94,782
Other current
liabilities 87,363 56,305
Total current
liabilities $280,414 $199,509
Long-term liabilities 6,740 4,032
Convertible notes 45,735 ---
Stockholders' equity 281,619 62,686
$614,508 $266,227
Next Story: Iomega <IOMG.O > adds capacity for Jaz drives, disks
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