Any info about Iomega (IOM)? Message Board

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

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To: Bearded One who wrote (35637)	12/12/1997 4:06:00 PM
From: Bearded One	Read Replies (6) of 58324

A Bear's look at the 10-Q: >From the May 1997 10-Q GROSS MARGINS: ... The ratio of disk sales to drive sales on Zip products was slightly higher in the first quarter of 1997, than in the first quarter of 1996. Jaz product gross margins improved in the first quarter of 1997, as compared to the first quarter of 1996, due to the absence of manufacturing start-up costs and a higher ratio of disk sales to drive sales. >From the Aug 1997 10-Q GROSS MARGINS .... 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. >From the Nov 1997 10-Q GROSS MARGINS ... This higher ratio was driven primarily by "catch up" shipments of Jaz disks resulting from an earlier Jaz disk recall (discussed below) and the temporary inventory shortage that was created while replacing the defective disks and integrating a new supplier. ... Overall gross margin percentage for the first nine months of 1997 was 31%, as compared to 27% for the first nine months of 1996. This increase in gross margin was primarily the result of reductions in component material costs and per unit manufacturing overhead costs for the Zip and Jaz product lines and higher ratios of disk sales to drive sales for the Zip, Jaz and Ditto product lines. -------------- Notice how, in discussing third quarter gross margins, they do not mention "higher ratios of disk sales to drive sales" for the Zip or Jaz. They do mention it for the 9 month's total, however. Could they have possibly had a lower tie ratio this last quarter? This bear thinks so.

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