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

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To: Daven G. Rajangam who wrote (8457)10/7/1996 10:19:00 PM
From: Dale Stempson   of 58324
 
Daven, A key element in computing a 3rd quarter earnings estimate is the number of ZIP disks sold - the tie rate. I think we can expect a lower tie rate because: 1) OEM sales have increased and most of those drives have not yet reached the consumer yet, thus few extra disks sold and 2) Retail sales have dropped significantly from last quarter and customers buy more disks at initial purchase than later on.

Also, there is the rebate to consider. I would guess that the ZIP (before rebate) was more profitable than the JAZ, but is now less profitable (after rebate).

Since the ZIP products represent such a huge portion of Iomega's sales and earnings, these factors should be included in your estimate and should have a considerable impact.

Regards - Dale.
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