Allen,
>>In particular, the news that 4 million is being held in reserve for rebates for next quarter is quite good. I saw someone saying this equated to only 57,000 Zip drives and 57,000 gigapacks, but that math looks faulty to me. (I haven't read all the comments on this thread yet, so someone may have already taken issue with this.) Moreover, a tie ratio of 10 gigapacks per drive is surely too high.<<
These were my figures in post #4626 and you misinterpretted one of them. The tie ratio is disks/drive a tie ratio of 10 to 1. This is the same as the 1 (gigapack)to 1 drive ratio that I used (57,200 and 57,200). The math:
drives -- 57,200 X $50 = $2,860,000
gigapacks -- 57,200 X $20 = $1,144,000
total $2,860,000 + $1,144,000 = $4,004,000 or ~$4M
Thus, Iomega has only carried forward enough money to cover a relatively small number of rebates, which means (reposting of info in message #4626):
1) Iomega anticipates relatively low % of rebates actually used
and/or
2) As many rebates will be deferred to Q4 as possible
OR
3) This $4M will just be a bandaid for the bleeding due to rebate, but
it was all Iomega could reserve and still beat estimates.
I would be interested in your (or anyone else's) take on the last part of post #4626!
Jay
LONG on IOMG |
