Iomega reports sharply higher profits - News Alert from Reuters
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ROY, Utah, Oct. 17 (Reuter) - Iomega Corp. (NASDAQ:IOMG) said
Thursday its third-quarter net income jumped sixfold, more than
analysts expected, on booming sales of its removable disk
drives.
Iomega, based in Roy, Utah, also said it will move trading
of its common and preferred stock to the New York Stock
Exchange from Nasdaq.
Net income for the quarter ended Sept. 29 rose to $12.8
million, or 9 cents a share, from $2.03 million, or 2 cents a
share, in the same quarter a year ago. Third-quarter revenue
more than tripled to $310.1 million from $84.7 million.
Wall Street expected Iomega to earn 7 cents a share,
according to First Call, which tracks analyst expectations. The
better-than-expected results sent Iomega stock as high as
$25.375 in after-hours trading. Its stock had closed at
$22.875, down $2.98.
Iomega makes disk drives that can store computer
information on disks about the size of a regular floppy disk,
but with many times the capacity. Strong sales of its Zip, Jaz
and Ditto drives accounted for the jump in revenue, the company
said.
Iomega also said it is considering taking much of its
contract production of disk drives back from outside companies
and moving this to its new plant in Penang, Malaysia.
For the first nine months of 1996, net income rose to $37
million, or 28 cents a share, from a loss of $1.4 million, or a
penny per share, in the same period a year ago. Nine-month
revenue jumped to $815.7 million from $177.4 million.
Regards,
Erik
Just a flavor of what media will report tomorrow? |
