Iomega - A Civil Discussion Message Board

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Non-Tech : Iomega - A Civil Discussion

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To: jwk who wrote (1859)	8/3/1997 5:39:00 PM
From: HRP	of 1908

Jack: I agree that TMFKEELER has a solid track record on calculating earnings. And, if Iomega does not have any ZIP production problems in Q3 as it has had in Q1 and Q2, I am comfortable with TMFKEELER's expectations of 23 or 24 cents for Q3. But, TMFKEELER did comment that "I think only a portion of the backlog will get filled and only a week or two of inventory will be restocked in the channcel by 9/30." And, on the uncivil thread Gottfried Mauersberger, in Reply 27837, reported a channel check that is consistent with the above. I question whether Iomega, beginning October 1, 1997, can ramp up ZIP production (and resulting Q4 sales) sufficiently so that earnings will increase another 5 or 6 cents in Q4. An increasing percentage of production is being shifted to OEMs where the margin is smaller and where concomitant disk sales are, at least initially, less. My concern is that without significant increases in sales to the retail channel, Q4 earnings will be constrained more than currently expected. Apparently TMFKEELER does not think this will happen. I believe that ZIP production via channcel checks (as unscientific as they may be) bears close watching. Could it not go either way?

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