Any info about Iomega (IOM)? Message Board

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

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To: macwu who wrote (4618)	7/19/1996 12:37:00 AM
From: Jay Chaffin	of 58324

Macwu, $4M/~130M shares = $.03 EPS withheld to cover rebates which should impact next quarters numbers. That is a loss this quarter but a non-loss (~gain) next quarter. This $4M represents only ~57,200 drive rebates and ~57,200 gigapack rebates (assumes tie ratio = 10). These numbers seem pitifully small indicating: 1) Iomega anticipates relatively low % of rebates actually used and/or 2) As many rebates will be deferred to Q4 as possible OR 3) This $4M will just be a bandaid for the bleeding due to rebate, but it was all Iomega could reserve and still beat estimates. Note: The quarter over quarter growth rate seen in this quarters announcement projects almost exactly to the $1.35B in revenues and $.54 EPS. Almost eerily similar to the JP Morgan estimates when they issued a buy. Perhaps we should interpret this as meaning that the JPM target price of $42 within 12 months will also be right on the money. Comments?? Jay LONG on IOMG (expected $.13, minimum)

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