Gary,
Thanks for the info on the address. It wasn't something I wanted to
read but it is must reading.(this is unedited-sorry)
Publication: The Salt Lake Tribune
Types: Business
Published: 06/05/96
Page: B4
Keywords: UT, Businesses, Briefs
Meanwhile, In Utah...
Iomega Offers 5 Million Shares
Iomega Corp. of Roy on Tuesday announced a public offering of 5 million of its common shares for $35 a share.
Iomega, a provider of personal-computer storage products such as disks and disk drives, had planned a public sale of
5.2million shares earlier this year, but the company withdrew those plans in February, citing volatility in its stock price.
Last month, the company split its stock 2-for-1, and now has 119.6 million shares outstanding. Iomega said it will use
proceeds for working capital and general purposes, including the repayment of some bank loans.
American Stores Sells $350 Million of Debt
American Stores Co. of Salt Lake City led five high-grade companies that took advantage of relatively low borrowing costs to
sell debt.
Companies are eager to sell debt now in case borrowing costs rise further. Yields on U.S. government bonds, a benchmark for
pricing corporate bonds, headed back up in the past week after falling early last month.
``We're concerned that rates might move higher,'' said Bill Peressini, treasurer of PacifiCorp, a Portland, Ore.-based electric
utility planning to sell $217 million of preferred stock that resembles debt.
Last week, U.S. Treasury bond prices fell and yields rose 0.16 percentage point amid concern that a strong economy will lead
to accelerating inflation, prompting the Federal Reserve to raise interest rates. The yield on the 30-year Treasury bond was
recently 7.00%.
The yield on the benchmark Treasury is still below the 7.12% reached at the beginning of May. ``Rates are still relatively
attractive,'' said Peressini.
In sales Tuesday, American Stores Co., a Salt Lake City-based grocery and drug-store chain, sold $350 million of 30-year
debt at a yield of 8.066%, or just over 1% more than the yield on the 30-year Treasury bond.
Computer Leaders Ask For Eased Restrictions
Novell Inc.'s Robert Frankenberg and other computer-company chief executives have written members of Congress urging
them to loosen export restrictions on technology used to secure data over computer networks.
The U.S. government currently limits the export of hard-to-break computer codes that encrypt information so it can be sent on
networks without fear of tampering.
Computer-company executives say the restrictions are placing them at a competitive disadvantage just as the demand for
security products is growing. Many foreign computer companies don't face similar trade restrictions, giving them an advantage
over U.S. competitors, the executives said.
A bipartisan group of 27 House members supports the loosening of export restrictions on encryption technology. But the
Clinton administration defends the controls, saying law enforcement officials need the restrictions to stop spies and terrorists
from using encryption technology to send information worldwide.
HAFB Custodians Request Unionization
While a pay dispute pushes some custodians contracted by Hill Air Force Base to consider unionizing, their employer says
such a move could cost others their jobs.
Merlin Spencer, a Teamsters Union representative, says he has been asked to unionize base workers serving as job coaches
for the Pioneer Adult Rehabilitation Center (PARC) in Clearfield.
Coaches at the center, under the direction of Davis School District, were hired to work with clients with disabilities as part of a
$2.1 million cleaning contract.
But PARC Executive Director Bob Daniels contends the contract, which began in December, doesn't have the funds needed to
pay union wages to 25% of the workers.
MEANWHILE, IN UTAH... ... 06/11/96
Publication: The Salt Lake Tribune
Types: Business
Published: 06/11/96
Page: B5
Keywords: UT, Businesses, Briefs
Meanwhile, In Utah...
Iomega, StorageTek Stocks Rise
Shares in Iomega Corp. and Storage Technology Corp. jumped sharply Monday after both companies received validation
of their products from high-tech's biggest giant, IBM.
Iomega's Zip drive will be built into one model of IBM's Aptiva personal computers sold through retailers this fall, the
companies said. And, separately, IBM will resell StorageTek's subsystems for storing data processed by large computers in
businesses and government agencies.
Iomega closed up $6 to $43.87 1/2, a 16% gain, on the Nasdaq stock market. StorageTek rose $4.50 to $39.50, a 13%
gain, on the New York Stock Exchange. IBM finished up 87 1/2 cents to $102.62 1/2, also on NYSE.
Iomega's drive has become a popular accessory to PCs because it allows users to store much more data, up to 100 megabytes
on a disk, than can be done with ordinary floppy diskettes, which typically hold 1.4 megabytes. Most PC manufacturers are
expected to incorporate Zip drives or comparable components into their top-of-the-line models for home use this year.
While IBM introduced some other new Aptiva models Monday, the one with a Zip drive won't be available until later in the
year.
Utah Firms Cash In On Boeing Business
Utah companies provided Boeing with approximately $81 million worth of parts and services in 1995, the company reported
Monday.
To build commercial airplanes, helicopters, defense products and space systems, Boeing purchased a wide range of supplies
and services from approximately 200 companies in Utah. This included some 125 small businesses.
``Every time Boeing sells a product, we support thousands of jobs from coast to coast,'' said Phil Condit, Boeing president.
MEANWHILE, IN UTAH... ... 06/18/96
Publication: The Salt Lake Tribune
Types: Business
Published: 06/18/96
Page: B5
Keywords: UT, Businesses, Briefs
Meanwhile, In Utah...
Bar Foundation Awards Grants
The Utah Bar Foundation has awarded $285,600 in grants to agencies providing free or low-cost legal aid, legal education or
other law-related services.
The foundation is a charitable, nonprofit organization, funded by Utah lawyers, which provides grants, awards and
scholarships. The 1996 grants, announced last week, were awarded to:
Legal Aid Society of Salt Lake, $90,000; Utah Legal Services, $87,700; Law Related Education, $35,000; Catholic
Community Services Immigration Project, $26,000; Legal Center for People with Disabilities, $10,000; DNA People's Legal
Services, $20,000; Administrative Office of the Court, $5,000; Utah Legal Services Senior Lawyer Volunteer Project,
$3,000; Utah State Bar Needs of Children Committee, $2,000.
Also, $6,900 in scholarships and ethics awards will go to law students at Brigham Young University and the University of Utah.
NEC PCs to Include Iomega's Zip Drive
NEC Technologies Inc. said it plans to include Iomega Corp.'s Zip disk drive in some of its personal computers starting in
the third quarter of this year.
NEC Technologies, a unit of NEC Corp. of Japan, was the second company to say last week that it will put Zip drives in some
of its machines. International Business Machines Corp. said it would put Zip drives in one of its new Aptiva computers.
NEC Technologies will install the Zip drive, which lets computer users expand their machines' memories in its NEC Ready and
Powermate Pro personal computers.
Analysts said endorsements from IBM and NEC help the Roy-based Iomega, whose critics have said that the recent runup
of the company's shares isn't justified by the promise and sales of its products.
BRIEFING ... 06/19/96
Publication: The Salt Lake Tribune
Types: Nation-World
Published: 06/19/96
Page: A2
Keywords: Briefs
Briefing
UTAH/REGION
Decision Affirmed: The U.S. Supreme Court, ruling that law officers have the right to stop people for an innocuous traffic
violation as a pretext to search for drugs, affirmed an earlier 10th U.S. Circuit Court of Appeals ruling, despite the misgivings of
a dissenting judge.
Details: A-1
No Gold: The high hopes for what was termed a win-win situation for the University of Utah and the private sector involving its
mining building apparently did not hit pay dirt. Among other things, financing failed to materialize.
Details: A-1
No Bail: In a Billings, Mont., courtroom, a federal judge has denied bail for 13 defiant members of the Freemen.
Intermountain: A-8
Join the Fray: The fight opposing a Snowbasin land-swap bill has lined up five national environmental organizations. But
supporters of the bill are not worried. They say Congress knows the swap is needed for justification to expand the ski area to
be used for a site for the 2002 Winter Olympics competitions.
Details: B-1
No Power to You: More than 2,000 homes in Sandy could face deliberate power outages this summer if temperatures break
100 degrees for an extended time. The Public Service Commission has given Utah Power power to interrupt service to those
customers, but only if it would prevent a wider outage.
Details: B-1
Near Starting Gate: As the Utah Primary moves to within one week, candidates jockeyed into position.
Details: B-1
**********
BUSINESS
Dow Slides: The Dow Jones industrial average fell 24.75 points on Tuesday to 5,628.03 as the blue-chip barometer trailed
lower with bonds. A tame report on new housing construction failed to calm worries about inflation and interest rates.
Stocks: B-5
Iomega Tumbles: Mitsubishi Electric's announcement that they will make a rival ``superfloppy'' computer disk drive sent
Roy, Utah-based Iomega's stock down 28 percent. Iomega's bread and butter has been its Zip drive that has become the
industry standard.
Details: B-4
**********
SPORTS
Summertime Hoops: Long a fixture in the boys game, the summer basketball camp craze has become equally prevalent for
girls. Every university, many high schools, the Utah Jazz and a number of national organizations put them on -- and players of
all ages are enrolling.
Details: D-1
Last Night's Scores
Los Angeles 9-4, Chicago 6-7
San Francisco 9, Florida 8
**********
DAYBREAK
Garden on the Rocks: In the yard of a miners cabin overlooking Park City is a pile of limestone rocks. A closer look shows a
pattern to them. Each is used as a setting for a wide range of alpine plants from around the world. Retired Minnesotan Dick
Van Reyper has cultivated what may be Utah's best rock garden.
Food & Garden: C-1
**********
COMMENTARY
Speech Unbound: Federal judges were correct in rejecting the Communications Decency Act, an impractical attempt to censor
the Internet. The best way to prevent children's exposure to raunchy material is for parents to monitor their computer activities.
Editorial: A-10
**********
THE AMERICAS
Under Suspicion: Atty. Gen. Janet Reno ordered the FBI on Tuesday to conduct a complete investigation into White House
conduct in the controversy over the FBI background files.
Details: A-1
Whitewater Wash: Ending a bitterly divisive 14-month investigation, Senate Democrats concluded Tuesday that President and
Hillary Rodham Clinton were blameless in Whitewater while Republicans suggested the first lady hid misdeeds and presidential
aides lied.
Details: A-3
Klaas Conviction: Richard Allen Davis was convicted Tuesday of kidnapping and murdering 12-year-old Polly Klaas in a
verdict that makes him eligible for the death penalty.
Details: A-4
Unabom Indictments: Theodore Kaczynski was charged by federal prosecutors on Tuesday in four of the bloodiest
Unabomber attacks in an indictment calculated to bring the death penalty for the math professor-turned-hermit. A federal grand
jury charged Kaczynski in two fatal bombings in Sacramento in 1985 and 1995 and two attacks that maimed scientists at Yale
and the University of California in 1993.
Details: A-3
Well-Timed Exit: The head of Colombia's secret police resigned Tuesday amid allegations his agency was trailing the U.S.
ambassador and tapping his phones. A spokesman said the police head stepped down ``for personal reasons'' but the timing
appeared linked to the controversy.
Helicopters Collide: At least six people were reported killed and 16 injured when two Army helicopters collided Tuesday as
soldiers descended to the ground on ropes in an air-assault demonstration for a group of visitors.
Details: A-9
**********
ASIA/OCEANIA
Talks, But No Promises: Israeli's new government will meet without conditions with leaders of Syria, Lebanon and other Arab
countries, the new prime minister said on his first day in power. But Benjamin Netanyahu warns that his top priority will be
security for Israelis.
Details: A-5
No to No Nukes: China rejected a Japanese demand Tuesday to cancel further nuclear tests. China set off its latest
underground blast Saturday, a day after a resolution by Japan's Parliament called such tests ``truly regrettable'' when talks on a
world test ban are nearly complete.
Gadhafi Warns of Expulsions: Libyan leader Moammar Gadhafi has told the PLO that he will resume expelling Palestinians
from Libya next month, a Palestinian official said Tuesday. Gadhafi expelled 2,000 Palestinians last year to focus attention on
the shortcomings of the Israeli-Palestinian peace accords.
**********
EUROPE/AFRICA
Refugee Ship Returns: A ship carrying 428 war refugees abandoned its 22-day search for a safe haven Tuesday, returning its
exhausted passengers to Monrovia, Liberia, days after reporting engine trouble and disappearing.
Cops Shot in Kosovo: Gunmen killed a police officer and seriously injured another in Serbia's Kosovo province, where
authorities use a heavy police presence to suppress ethnic Albanians. The attack Monday came one day after another Serb
police officer was wounded in the leg in a similar ambush.
In or Out? Prime Minister John Major vowed Tuesday to continue the Northern Ireland peace process with or without Sinn
Fein, the political wing of the outlawed Irish Republican Army. In the wake of Saturday's IRA bombing in England, Major
called on Sinn Fein to ``make up its mind'' once and for all whether it will participate in democratic politics.
BRIEFLY... ... 06/19/96
Publication: The Salt Lake Tribune
Types: Business
Published: 06/19/96
Page: B4
Keywords: UT, Businesses, Briefs
Briefly...
Legaldocs is a new Internet service that generates custom legal documents and contracts for personal and business use,
including living wills, powers of attorney and promissory notes. Its address is
legaldocs.com
[] [] []
First Security Insurance Inc. has been selected as a charter member of USF&G Insurance Century Club. The club recognizes
First Security's top agents and brokers. It offers special compensation, sales and marketing assistance and access to agency
development and insurance education programs.
[] [] []
Iomega Corp. announces that Gateway 2000, a worldwide direct marketer of personal computers, is offering customers the
internal Ditto Easy 3200 as an installed option. Ditto Easy 3200 is a 3.2 gigabyte tape backup drive.
[] [] []
InQuo announces the introduction of a comprehensive Web site dedicated to gathering and displaying Utah-based content on
the Internet. Found at utahinfo.com, the site provides a categorized and alphabetized directory of all Internet Web
sites in Utah.
[] [] []
JP Realty of Utah has broken ground on a mega-mall in Spokane, Wash. The first phase of the Eastern Washington Mall will
have 770,000 square feet of space, which will grow to a million.
[] [] []
Galtech Semiconductor Materials Corp. has opened new facilities in Salt Lake City. The company produces cadmium telluride
semiconductor material.
[] [] []
Fresco Italian Cafe in Salt Lake City has won the DiRoNA Award from Distinguished Restaurants of North America. Selected
restaurants are unaware that they have been nominated or are being evaluated.
[] [] []
The Les Olsen Co. of South Salt Lake is celebrating its 40th year of selling specialized office equipment. The company plans
an open house Tuesday and June 26 at 3244 S. 300 West.
[] [] []
Non-Stop Productions of Salt Lake City has completed music packages for WCBS-TV and WPIX-TV in New York City.
The company also has provided new music for The Family Channel on the cable network.
[] [] []
Competition Cycles at 688 E. 300 South and Competition Boards at 748 E. 820 North in Salt Lake City are liquidating their
inventories beginning Thursday at 10 a.m. The stores sell mountain bikes, snowboards, skateboards, clothing and accessories.
[] [] []
EFI Electronics of West Valley City reports a pretax net loss for 1996 of $1.7 million, or 56 cents per share, compared to a
net loss of $3.2 million, or $1.21 per share, for the previous year. The company supplies power-protection products for
business and industrial applications.
[] [] []
FJCandN,a Salt Lake City advertising-public-relations firm, has won a merit award for a direct-mail invitation for Habitat for
Humanity. The award was presented at the 1996 One Show.
RIVAL DRIVE ZIPS IOMEGA 28% LO ... 06/19/96
Publication: The Salt Lake Tribune
Types: Business
Published: 06/19/96
Page: B4
Keywords: Ut, Businesses, Computers, Stocks & Bonds
Caption: Steve Baker/The Salt Lake Tribune
Iomega Stock Movement
Rival Drive Zips Iomega 28% Lower
Mitsubishi Using Technology Roy Firm Had Owned
Rival Drives Iomega Shares Lower
Byline: BY STEVEN OBERBECK THE SALT LAKE TRIBUNE
Wall Street's love affair with Utah's Iomega Corp. could be coming to an end.
Iomega shares lost 28% of their value Tuesday after Tokyo's Mitsubishi Electric Corp. announced plans to make computer
floppy-disk drives that can store 80 times more data than the standard models now in use.
The entry of Mitsubishi as a major new competitor into a market that so far has been dominated by Iomega's Zip drive could
spell rocky times for the Roy company whose shares closed Tuesday at 26 3/4, down 10 1/4 for the day.
``Everything good about Iomega that could possibly be said was reflected in the company's stock price last month when it
closed at $54 a share,'' says Rick Berry, a securities analyst at Murphy, Marseilles, Smith & Nammack in Atlanta.
Berry issued his first research report on Iomega last week. He recommended investors sell their shares, believing the price
would hit $26 to $28 a share within one to three months and $16 to $18 a share within the year.
Explaining his forecast, Barry says either increased pricing pressure on the company's products or a major new competitor was
lurking in the background.
He was right.
Mitsubishi, which makes several types of computer components, says it plans to supply major personal-computer makers with
disk drives based on its LS-120 technology, which ironically was once owned by Iomega Corp. It plans to ship its first
products during the fourth quarter of this year.
Disk drives based on the LS-120 technology use a combination of laser light and magnetic recording components to store
computer text, graphics and sound on floppy disks. And unlike Iomega's Zip drive, which requires its own type of disk,
Mitsubishi's technology can read existing floppy disks.
Shares in Iomega were trading for less than $2 in mid-1994. A 3-for-1 stock split in late January followed by a 2-for-1 split
last month meant that a single share purchased two years ago could have been sold on May 22 for $324.
It could have been sold Tuesday for $160.
``Iomega's stock price just got way ahead of the company's fundamentals,'' says Ken Trbovich, an analyst with Red Chip
Review in Portland.
Iomega reported a net income of just $8.5 million on $326.2 million in sales for its 1995 fiscal year. Yet when the
company's stock closed at its all-time high of $54 a share, Iomega had a market capitalization of some $7 billion.
Market capitalization is calculated by multiplying a company's stock price by the number of shares it has outstanding.
``Investors may be realizing that it takes time to build up a company's sales, even when they have excellent products like
Iomega,'' Trbovich says.
Iomega announced at the PC Expo Conference in New York on Tuesday that it soon plans to market a new version of its
Zip drive for laptop computers. But even that announcement could not stop the stock's free fall.
Iomega's shares also have been under pressure of late from several large institutional investors who have been trimming their
holdings in the company.
In May, Robert T. Lutts, money manager for the $350 million Cabot Money Management, began cutting his Iomega
holdings because thy had grown to be too large a portion of his portfolio.
Referring to the large following the stock has gained from individual investors on the Internet and the Motley Fool investment
bulletin on America Online, Lutts said, ``It's become a little bit of a cult stock. When that happens, you know it's not early'' in
the rally.
And Navellier & Associates, a money-management firm based in New York, sold some 390,000 shares last month to reduce
its holdings. The reduction in the firm's stake was ``just trimming,'' said Jon Tesseo, director of research at Navellier.
And Iomega's management and company insiders also may have been quietly selling shares. CDA/Investnet's Insiders'
Chronicle newsletter on June 11 indicated that insiders at many disk-drive makers, including Iomega, were selling shares.
Insider sales are closely watched by some investors, who believe they may signal a belief by executives that share prices will
drop.
Iomega's management could not be reached for comment.
Bloomberg News Service contributed to this report.
Ira |
