Dale, re: the Jaz component of Q4 sales
Dale, once again you're right. However, considering that Q4 is seasonally the best quarter of the year, and that I have included a very conservative number for Ditto and Zip Plus sales, I'm probably a little optimistic, but I'll keep my projections as the high one on the thread.
I'll be very happy if I'm right (and so will you). Bottom line, I really, really think that Iomega will beat their 7% after tax margin this last quarter. So, if they do something like 8-9% in after tax margin, even if I'm high on the revenue side, my EPS should be right in line.
Never like to make projections based on incomplete information. However, that's what we're working with at this point.
Positive factors going for Q4:
1. Full effect of Malaysia savings
2. No production downtime
3. $300MM backlog going into quarter
4. Comdex G&A expenses taken in Q3
5. Larger % of revenue coming from high volume disc sales due to larger base of drives out there, huge sales, and many retailers promoting them this quarter. |
