Dow Jones put a positive spin on Iomega News this a.m.:
21:06 DJS Iomega's 3rd-Quarter Earnings More Than Doubled, Topped Estimates
1:06 DJS Iomega's 3rd-Quarter Earnings More Than Doubled, Topped Estimates
NEW YORK -(Dow Jones)- Computer-storage products maker Iomega Corp.
Thursday announced it more than doubled third-quarter net income, topping
analysts' estimates as revenue and gross margins increased.
The Roy, Utah-based company had net income of $30 million, or 22 cents
a share, beating the 20-cents-a-share mean estimate of five analysts surveyed
by First Call.
A year ago, the company earned $12.8 million, or nine cents a share.
Overall sales increased 39% to $431.7 million with global Zip drive
shipments up 26% from a year ago. Of the Zip drives shipped during the third
quarter, 35% went ting customers.
The company's third-quarter gross margin increased to $140 million, or
33% of sales, from $82 million, or 26%, a year ago.
Selling, general and administrative expenses as a percentage of sales
increased to 17%, or $73 million, for the third quarter, compared to 16% a
year ago. Iomega attributed the increase to international expansion and
additional headcount.
Third-quarter research and development expenses were $23 million, or 5%
of sales, compared to 3.4% of sales a year ago.
Iomega said Zip drive inventory levels were lower than it desired at
both the beginning and end of the quarter.
The results were announced after U.S. markets closed Thursday. Iomega's
(IOM) shares closed up 18.8 cents to $24.75.
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