All , Re:>>> Computer Retail Week <<<
Snip:
On Thursday, Iomega reported fourth quarter earnings of $36 million, or 13 cents a share, 2cents shy of Wall Street estimates. The results, however, were a 77.4 percent increase compared with profits of $20 million in the year-earlier quarter.
Following the earnings report, Iomega's stock price lost 30 percent of its value in after-market trading before settling Friday at current levels.
Market analysts said the days of rapid growth for the maker of Zip and Jaz drives may be coming to a close. "The growth in the sales numbers has been slowing down in the last 18 months," said Stephen Baker, senior analyst for PC Data, in Reston, Va. "As more people get [Iomega products], they don't have as much opportunity to upgrade the drives. And that's a problem, because once you've sold the drive, you don't have the opportunity to sell another one."Snip
techweb.com
I would take issue with the above statement .
"As more people get [Iomega products], they don't have as much opportunity to upgrade the drives. And that's a problem, because once you've sold the drive, you don't have the opportunity to sell another one "
The writer is only speaking of the after market sales . He doesn't take into account all the boxes the OEM"s sell without floppy drives
and all the drives that Iomega will have to provide when and if the Zip drive becomes the standard .
This is what the advertising blitz is all about I believe , to make the Zip the standard. The only way the OEM's are going to consider making the Zip drive the A: drive in their boxes will be due to heavy consumer demand .
With Micron leading the way , other OEM's will follow only when they find themselves being pressured by their customers to include the Zip.
Long IOM ,
Herb |
