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Non-Tech : Any info about Iomega (IOM)?

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To: mgsam who wrote (2545)6/6/1996 4:07:00 PM
From: Joe Rizzo   of 58324
 
If Chiros said Microsoft's Revenues are only $2 billion per year, forget the analysis. Microsoft did $2.2 billion in revenue last quarter. Further Microsoft has $7 billion in cash and it has been deferring revenue from Windows 95. Finally, and most importantly Microsoft has net margins of 25%. Iomega in the long run because of the nature of the business (Hardware versus Software) can only dream of Gross margins of 30% while Microsoft routinely has Gross Margins of 80%. The fact that Chiros is using Microsoft as his comparison proves to me that the bulls case is drastically flawed.

Joe Rizzo
JMR Trading
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