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Non-Tech : Any info about Iomega (IOM)?
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To: Ken Marcus who wrote (2653)6/9/1996 12:50:00 PM
From: Daven G. Rajangam   of 58324
 
Ken, the main concern I have is that IOMG has stated a 5 million unit capacity for Zips in 96. It's not clear what the bottleneck is: factory space, or certain critical components (drive controllers, etc.) However, at such a rate (and assuming other capacity doesn't come on-line by year end), meeting demand will be quite a crimp on earnings by year end (a 5 million annual rate is 1.25 mill. per quarter average. Q1 sales rate of 1 million or so and the stated capacity would preclude a ramp-up to more than 1.5 million by year-end. I agree a lot more than 5 million could be sold if capacity exists ( 8 million may be pushing it), but I certainly hope KE is busy securing other sources of supply.

Also, on the tie ratio of 10, I assume this is a lifetime ratio. Is there any info about when these 10 disks are purchased? Is it all in the first 6 months or so of ownership with essentially nothing after? Also, what's the expected lifetime (useful) of a Zip drive?
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