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Non-Tech : Any info about Iomega (IOM)?
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To: Gary Wisdom who wrote (42454)1/5/1998 11:03:00 PM
From: Dale Stempson  Read Replies (2) of 58324
 
Re: Earnings Forecast

Gary, I reviewed your forecast and have a couple comments:

1) Early in the year, unit prices were higher than today. One example: OEM Zips now account for 35% of the total Zips shipped and are sold at lower unit prices.

2) We have no indication that Jaz sales will increase at the same rate as Zip sales.

3) I also think 2.5 million Zips sold is a more reasonable estimate. If they do happen to ship 3 million Zips, then you can be certain they will achieve Major cost benefits.

IMO, your revenue estimate is too high and your net margin estimate is too low. The bottom line here is that if Jaz sales grow significantly, and Iomega does account for 3 million Zip units sold, then your revenue and margin numbers would offset each other and your EPS estimate of 19 cents (after split) would probably be very close.

Regards - Dale
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