Any info about Iomega (IOM)? Message Board

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Non-Tech : Any info about Iomega (IOM)?

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To: Kangming Xu who wrote (2348)	6/4/1996 11:03:00 AM
From: JP Sullivan	of 58324

Re: "Today press release shows 5million Zip drives production capacity this year. If tie ratio is 10, then, this will bring about $1b revenue this year for Zip alone." What is the revenue per Zip drive? My guess: $70-$80. How much revenue per disk? My guess: $6-$7. I don't know if a tie ratio of 10 is realistic. How did you arrive at this figure? Even if sales of 5 million drives are possible and 50 million disks are sold, the upper end of my estimate is $750 mil. I think $1 bil of Zip related sales is overly optimistic. Now how many Jaz drives and disks will IOMG have to sell to bring in $250 mil revenue? (Alert investors will quickly point out that I'm ignoring sales from Ditto. You're welcome to plug in your numbers here.) All accounted for, I think IOMG would be doing well to have $1 bil. in sales this year. I'm a bit skeptical as to whether this is easily achievable. (Who knows, I may end up eating my words. But all the same I'd rather be realistic.) Maybe it is; maybe there are lots of OEM deals waiting in the wings. What do the others think? Winston

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