Any info about Iomega (IOM)? Message Board

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

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To: Stan J. Czernel who wrote (4032)	7/3/1996 3:19:00 PM
From: Cogito	of 58324

Hi, Stan. This is really to everyone. I don't see the Jaz price cut having a negative impact on Q3 earnings. Quite the opposite. Jaz revenues, so far, have been only a small percentage of total revenue, due to the limited (so far) availability of the product. A reduced price will generate better sales numbers, which will have a positive impact on earnings. It is also reasonable to conclude that the reduced prices are an indication that the supply problems are gone. Is this pricing strategy risky? I don't think so. I'm sure the company will not be losing money on the drives at this price. And the disks are definitely where the serious annuity revenue is. I, too, would like to see them get the price for the 1GB disks down below $100 . I'm sure it will happen, eventually. BTW, someone, I can't recall who, made mention of my statement about today's P/E ratio being based on last year's earnings. Just to clarify this; a company's P/E ratio is based on the last four quarters reported earnings. So as of right now, Iomega's P/E reflects earnings for the period including Q2 '95 through Q1 '96. - Allen Murdock

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