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Non-Tech : Any info about Iomega (IOM)?
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To: who wrote (1627)6/16/1996 9:49:00 AM
From:    of 58324
 
ABSENCE OF SUPPLY CONTRACTS; DEPENDENCE ON SUPPLIERS; SHORTAGES OF CRITICAL
COMPONENTS. Many components incorporated in, or used in the manufacture of, the
Company's products are currently only available from sole source suppliers.
Moreover, the Company has experienced difficulty in the past, is currently
experiencing some difficulty and expects to continue to experience difficulty in
the future, in obtaining a sufficient supply of many key components on a timely
basis. For example, many of the integrated circuits used in the Company's Zip
and Jaz drives are currently available only from sole source suppliers. The
Company has at times been unable to obtain a sufficient supply of certain of
these integrated circuits due to industry-wide shortages, and there can be no
assurance that the Company will be able to obtain a sufficient supply to fully
satisfy the Company's demands for such integrated circuits. These component
shortages have limited the Company's ability to produce sufficient Zip and Jaz
drives to meet market demand and have limited the Company's ability to implement
certain cost reduction and productivity improvement plans, and the Company
expects that the shortage of components may limit production of Zip and Jaz
products for the foreseeable future. The Company also experienced difficulty
during 1995 in obtaining a sufficient supply of the servowriting equipment used
in the manufacture of Zip disks. Such equipment shortages in 1995 limited the
Company's production of Zip disks, and there can be no assurance that similar
equipment shortages will not occur in the future.
________________________________________________________________________________

This is why Iomega won't reach the lofty goals many of you have projected.

Heads up,

Frank
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