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Non-Tech : Any info about Iomega (IOM)?
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To: FuzzFace who wrote (44588)1/22/1998 10:05:00 PM
From: Lurker  Read Replies (2) of 58324
 
notes from cc call:

double unit volume

majority of growth was in oem

oem = 34% in Q4

lower tie rates - will market in 1998.

zip q4 62% > q3

12 million zips

problems: q4

asian sales half of what planned

product delays : jaz2, ditto max, buzz

missed 70M revenue

jaz2 and buzz will ship this quarter.

(zip) current 15mm to 12.7 mm

will sell for 99 when appropriate

(ditto) ditto-max pro for 299 up to 10G

(jaz2) ex=699 and int=549 will only decrease price when needed due to competition. Want to make lots of money.

(clik) no commitments. will sell in 2q for evaluation. sell publicly in 2nd half.

american 23% growth dissapointing. oem strong, but retail sales weak. missed products caused missed sales.

turning up marketing in 1q:

1. superbowl-pregame, 4q, and postgame

2. 15x advertising than 1q-1997.

3. 100M in adds in america

4. funding - increase fda, decreased headcount, decreased price decreases - possibility less income in quarter.

disk piracy:

independent lab - damage to heads
noumai cannot sell in uk and usa
new noumai disks still damage heads
uk new hearing in feb
germany - 1 of 3 distributers can sell
france - noumai can sell old cartridge which they abandoned

syq trial in jan 1999.
settled us suits about rebates and customer service.

scott hired for operational excellance initiative

lots of talk about who will do what in upper mngt.

overall ke pleased with q4 and 1997
oem 11x 1996

lynn and financial details:
europe most of growth
oem zip = 34% of sales
1998 growth high 20s to low 30s
zip capacity = 20M and jaz = 3M in 1998

questions:
----------
jp morgan - missed revenue 50M in asia and 70M in no products
what about competition?
talked about backlogs.
competition had little effect

r&d only 24M in q4
not reduced due to less revenue

cliff from hd:
jaz1 inventory increased due to jaz2 delay
tv in q1 - cost in q1

tom at ??????:
why > inventory in zip disks
fewer sales wasn't expected.
advertising 100M in america
most important = # of zips

emerald:
capacities?
now = 20M for year for zip
licensees 2q 200,000/month, year end = 500,00/month
asia < 10% and little growth expected this year.

???????:
penetration rate in 1998?
6-8M oem drives by iomega
sub-1000 pc's?
expect pc's < $500
expect these to buy aftermarket drives with saved money

more profit in non oem

emerald:
better to charge less than pay for superbowl adds?
people need to know why they need a zip
yes, will help competitor sales
won't tell us legal bills
clik?
lead time to build in a camera? (a year)
will concentrate on aftermarket drive.
will ship prototypes this qtr.

greenfield technology group:
tie ratio target?
more than now
oem ratio is lower
advertising will try to sell disks.
4q jaz tie ratios steady compared to 9 month average
more deals like micron?
no.

bently capital:
why no price cuts in stead of advertising.
want to educate public. 99 by end of year.
too many mass market users don't understand removable storage.

emerald:
jaz2 ship in q1? high price?
very confident.
competition and price?
they sell and we make money.

ken from hd bruce:
erosion of sell-through in america?
no. rate of sales increase decreased.
this questioner confused.

?????:
licensee can pursue oem deals?
yes.
jaz media drives source.
still looking.

???????:
inventory in channel?
have 8-9 week.
want 6-8 week.
over 4 weeks - put in reserved(deferred) revenue.
answerer sounds like cliff from cheers.
cost reduction in components due to more volume?
yes. little more until further levels of integration.

cliff josephy:
what new people doing?
advertising.

oem will get 12.7 drives

Call lasts 80 minutes.
1-800-446-4927
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