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Non-Tech : The New Iomega '2000' Discussion Group
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To: Reseller who wrote (1763)7/17/1999 5:10:00 PM
From: Dale Stempson  Read Replies (1) of 5023
 
Reseller, One positive result from last quarter that caught my attention was the number of Zip disks sold. While drive units sold trended slightly lower, disk units sold sequentially increased. Total disk units came very close to matching the holiday quarter and resulted in generating the highest tie ratio we've seen in years.

The installed base appears to be purchasing additional disks at a healthy rate which should continue to provide Iomega with a dependable source of profitable revenue for the foreseeable future. I believe this is an important stabilizing risk factor as management struggles to find acceptance for Clik! and discard it's "one trick pony" label.

Going forward through the end of the year, Y2K concerns and Iomega's associated marketing plan will likely ensure that disk sales remain solid or better, perhaps much better.

Still, while disk sales are important, I'm becoming more convinced that the company's outlook is mediocre at best unless it can achieve success with Clik! I suspect that the next six months will tell the story. At this point in time, I'm far from convinced that the product will be the winner Iomega so desperately needs.

Regards - Dale

...watching closely with no position at this time
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