Any info about Iomega (IOM)? Message Board

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

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To: John Wight who wrote (6839)	9/2/1996 8:54:00 PM
From: Patrick Keeler	of 58324

Here is my best guesses on your questions: Every Zip 100 sold causes the purchase, on average, of 9 Zip 100 disks. I glean this from a 2Q press release where IOMG stated they shipped 1 million Zips and 10 million Zip disks. If you subtract the disk that comes with the drive that means 9 Zip disks were purchased after the initial drive. I also believe every Zip drive sold means more Zip drives sold. My friend recently decided he needed high capacity removable storage. He didn't consider any of the competitors but bought a Zip, one reason was because I have a Zip. There is no way to quantify this impact. Iomega does not break out mfg cost, margins, etc. because it would hurt them competitively. Zip systems (drives and disks) gross margins are 30%. Net margin, before rebates, is somewhere greater than 7%. Iomega has stated publicly that the rebate will not lower Zip gross margins.

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