Any info about Iomega (IOM)? Message Board

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

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To: hoyasaxa who wrote (6304)	8/20/1996 1:49:00 PM
From: Kevin	of 58324

Hello. You have a very good,rational view. One more thing to consider that will help IOMG's health (and I consider this an important one): they need to use the $175 million from the secondary offering wisely. The company was damn near out of cash, and had alot of receivables and inventories. They need to pay down some debt, and tighten their credit policy. It is common for a company to allow more sales on credit than usual, so their sales will go higher. This looks good in the short term because it helps make the EPS look good. But if that debt never gets collected, and they start borrowing cash to fund operations (since they aren't collecting cash owed to them), the balance sheet will fall apart. That's why that $175 million is very important to them for the next few months. Thoughts>

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