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Non-Tech : Iomega - A Civil Discussion
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To: W.F. Schwertley who wrote (1877)8/13/1997 1:40:00 PM
From: Cogito   of 1908
 
All, especially HRP -

Here's an excerpt from the latest 10Q filing, posted by Michael Coley over on the Big Thread.

Gross margins increased in the second quarter and first six months of 1997, as compared to the second quarter and first six months of 1996, due primarily to reductions in component material costs and per unit manufacturing overhead costs, plus a higher ratio of disk sales to drive sales on Zip products.

(emphasis mine)

I believe this supports my contention that increasing OEM sales do not necessarily portend decreasing tie ratios. Of course, there is as yet no proof that tie ratios will not be reduced when OEM sales account for the majority of all Zip sales. That time seems to be at least a year away, though.

- Allen
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