Any info about Iomega (IOM)? Message Board

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

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To: Winner Victorious who wrote (7524)	9/24/1996 4:31:00 PM
From: Michael Canario	of 58324

If IOMG does not see 17 again, I will wait for Q4 earnings and proof that IOMG can make substantial money. I don't think that this company can hang its hat on the disk margins. They have to be able to make money on the drives (or royalties). Remember, disk prices will come down too. To reach the earnings necessary to support a $25+ valuation, you have to sell an awful lot of disks if you can't count on the drives for profits. For example, to meet next years approx. $1.00 earnings: Just for fun, assume that Ditto and Jaz products and Zip drives account for 25% (This year's earnings with the disks looks like less than $.40). To get the other 75% in Zip disks assume net earnings of $3/disk. 75% x $132MM = $99MM or 33 million disks. That may be attainable, but I think that there will be hiccups along the way between now and next year which will offer a new buying opportunity. If I'm wrong and I see evidence (statements from KE or customers or explosion in Jaz sales) which support higher earnings capability I'll look at coming back in. But as I see it today - IOMG has some things to prove to me before I buy back in above $17.

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