" A spokesman for IMP, of San Jose, Calif., said the business effected doesn't include Iomega,
whose business pumped in 12% of IMP's revenues last year."
Dow Jones News Service -- July 23, 1996
IMP, Iomega Shares Linked In Market Tailspin
By Marlon Millner
NEW YORK (Dow Jones)--IMP Inc. (IMPX) stock fell 26 percent when the integrated circuit
maker forecast a slowdown in coming quarters.
The concerns were worsened by a slumping market for technology stocks and weakness in a
related stock, Iomega Corp. (IOMG).
Shares of Nasdaq-listed IMP, which supplies a chip for Iomega's Zip drive, declined 2 1/8, or
26.6%, to 5 7/8 on volume of 5.1 million, compared with average daily volume of 3.4 million.
Nasdaq-listed Iomega shares dropped 3 3/4, or 18.9%, to 16 1/8 on volume of 21 million,
compared with average daily volume of 11 million.
Both companies recently reported earnings, and both stocks have been in a tailspin.
Last Thursday, Iomega reported second-quarter earnings of 11 cents a share, 1 cent above
consensus estimates. It earned 2 cents a share in the year-earlier period.
But the Roy, Utah, computer disk drive manufacturer made cautionary comments about the
European market in its post-earnings conference call. Iomega shares tumbled 20% Friday and
12% yesterday.
At the same time, IMP, which one analyst said does 20% of its business with Iomega, also fell.
IMP shares dropped 7% to 8 yesterday.
After the market closed yesterday, IMP reported fiscal first-quarter earnings of 9 cents a share,
compared with 2 cents in the year-earlier quarter ended June.
IMP, however, cautioned that the general softness in the market is beginning to hurt future
business. IMP said the second and third fiscal quarters may be negatively effected.
A spokesman for IMP, of San Jose, Calif., said the business effected doesn't include Iomega,
whose business pumped in 12% of IMP's revenues last year.
He did cite yesterday's negative outlook, and a generally lower market for today's decline.
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