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Non-Tech : Any info about Iomega (IOM)?
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To: Thuc Nguyen who wrote (3456)6/25/1996 5:42:00 PM
From: Matthew Shaun Koch   of 58324
 
Iomega's production lines are automated now. Back when the parking lots were full Iomega Corp. was building the Zip and Jaz by hand (I believe the simplicity of the drives reflected engineers knowledge that the drives were going to be built during ramping, by hand). In effect, Iomegas production capacity is no longer correlated with the number of people in the parking lot. Building the Zips/Jazs by hand meant an upper limit in production of 1 million drives. That upper limit is 5 million with the automation. No more overtime and no more temporary staff means better margins. You should remember as well that the cost of installing those automated lines were incurred last quarter and Iomega still beat estimates.
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