Any info about Iomega (IOM)? Message Board

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

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To: J P Cross who wrote (6115)	8/16/1996 10:44:00 AM
From: J P Cross	of 58324

Tom: One more thought on est EPS for 97 of $.82. When I calculate from the "bottom up", sales would have to exceed 2.2 billion dollars to net $.82 in EPS for 97. Using a 5% after tax profit margin is also a high percentage for a company like IOMG in a ramp-up stage where costs usually are greater (as a percentage of revenues) in the early stages of growth. $.82 x 132 mm shares = 108.24 mm net profit needed 108.24 net profit / .05 net proft margin after taxes = 2.165 billion in sales will be needed to meet $.82 in EPS. If IOMG can exceed very good manufacturing industry averages of 5% after tax profit margins then I will really be impressed with IOMG management and the manufacturing and production controls. With the high profit margin built into the disks (60 +%) IOMG may just exceed an after tax profit margin of 5%. The "disk" is still not the "razor blade" though because it doesn't ware out quickly like a razor blade. So you can't expect recurring sales. Let's be pleasantly surprised with future EPS but realize that it will not be easy to reach those estimates. Regards, JP Cross

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